The fund focuses on large-cap stocks outside the US and selects companies with sustainable competitive advantages. Multiple managers, each with different strengths, run their portfolios independently. This reduces single-manager risk and reflects a diversified set of views.

It suits investors who want to balance a portfolio overweight in the US market and gain both dividends and growth from high-quality global companies.

This is an actively managed ETF launched in 2024 by Capital Group.

The fund selects stocks bottom-up, based on fundamental analysis of individual companies. It holds high-quality assets around the world, from European luxury goods and health care companies with strong industry dominance to leading Asian semiconductor companies, and flexibly adjusts regional and sector weights according to market conditions.

• A multi-manager structure from Capital Group, a firm with a long track record in asset management
• A global portfolio that combines growth potential with dividend stability

Assets under management (AUM) are $2.6B, and the expense ratio is 0.54% per year.

Its management fee is somewhat higher than that of passive dividend ETFs such as VYMI and VIGI shown in the table, but it offers differentiated value by aiming to beat the market through active stock selection.

Since launch, the fund has posted positive results, helped by changes in the global interest rate environment and the strength of Asian semiconductor companies amid the spread of artificial intelligence. Solid earnings from European large caps have also underpinned returns.

Investors wary of valuation levels in the US market have turned to high-quality overseas stocks, driving active inflows, and institutional investors who prefer active management continue to participate steadily.

The fund offers an active approach to high-quality assets worldwide, but investors should consider the cost burden of active management and the volatility inherent in overseas markets.

DFAI, DFIC, and DFAX shown in the table are competing products that, like Capital Group's fund, pursue factor-based active investing. If you want cost-efficient passive exposure to the entire global market outside the US, VXUS or IXUS could be representative alternatives. And if you would rather focus only on developed-market large caps than on dividend income, VEU is also worth considering.

This is a key checklist for investing in the Capital Group International Core Equity ETF (CGIC). Take a close look at the characteristics and cost structure of active management.

Actively managed products are likely to deliver results that differ from the market average. Note that the economic conditions of the overseas countries invested in and exchange rate movements can significantly affect short-term returns.

It is a core holding suited to those who want expert-selected high-quality overseas companies. It is recommended for investors who want regional diversification in their portfolio while still expecting quality growth.