CGSM ETF — Holdings & Analysis

For informational purposes only. Not financial advice.

Quick Answer

The Capital Group Short Duration Municipal Income ETF (CGSM) is a fixed-income ETF with $1.09 billion in assets under management.

CGSM seeks to provide current income exempt from regular federal income tax, consistent with a short duration profile and preservation of capital. With an expense ratio of 0.25%, CGSM focuses on municipal bonds and other debt instruments, maintaining an average portfolio duration within 1 year of the Bloomberg Municipal Short 1-5 Years Index. The fund uniquely invests at least 80% of its assets in securities exempt from regular federal income tax.

Capital Group Short Duration Municipal Income ETF (CGSM) ETF — Price, Holdings & Analysis

The Capital Group Short Duration Municipal Income ETF (CGSM) is a fixed-income ETF with $1.09 billion in assets under management. CGSM seeks to provide current income exempt from regular federal income tax, consistent with a short duration profile and preservation of capital. With an expense ratio of 0.25%, CGSM focuses on municipal bonds and other debt instruments, maintaining an average portfolio duration within 1 year of the Bloomberg Municipal Short 1-5 Years Index. The fund uniquely invests at least 80% of its assets in securities exempt from regular federal income tax.

ETF Overview

The fund's investment objective is to provide current income exempt from regular federal income tax, consistent with a short duration profile as described in the prospectus and with the preservation of capital.Distinguishing Characteristics The fund will invest at least 80% of its assets in bonds and other debt instruments, including municipal bonds, which are debt obligations that pay interest that is exempt from federal income taxation, with payments made from a wide variety of sources, including governmental revenue streams and private enterprises.The fund will maintain an average portfolio duration that is within 1 year of the average duration of the Bloomberg Municipal Short 1-5 Years Index.The fund will normally invest at least 80% of its assets in, or derive at least 80% of its income from, securities exempt from regular federal income tax. May invest up to 20% of its assets in bonds that fund private, for-profit organizations (also known as private activity bonds) whose interest is subject to the federal alternative minimum tax.

CGSM aims to deliver current income that is exempt from federal income tax, while prioritizing capital preservation through a short-duration strategy. The ETF invests primarily in municipal bonds and other debt instruments, allocating at least 80% of its assets to securities that provide income exempt from regular federal income tax. This focus makes it attractive to investors seeking tax-advantaged income. The fund maintains an average portfolio duration within 1 year of the Bloomberg Municipal Short 1-5 Years Index, which helps to manage interest rate risk. Up to 20% of its assets may be invested in private activity bonds, which are subject to the federal alternative minimum tax. As of 2026-03-15, the fund's sector allocation is heavily concentrated in Cash & Others, representing 100% of the portfolio. The fund's country exposure is entirely in Other, indicating investments outside of the United States.

Risk Metrics

CGSM's risk profile is influenced by its concentration in the Cash & Others sector, which constitutes 100% of its holdings. This concentrated exposure could amplify the impact of any adverse events within that sector. The fund's beta, a measure of its volatility relative to the market, is 0.00 over the past three years, suggesting that it has very low volatility compared to the overall market. The expense ratio of 0.25% will create a slight drag on performance over time, reducing net returns to investors. These factors when evaluating CGSM's suitability for their portfolios may be worth researching. Past performance does not guarantee future results.

Expense Ratio

0.25%

How Is the Fund Allocated?

Sector	Weight
Cash & Others	100.0%

Country	Weight
Other	100.0%

Dividend Yield

0.00%

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) — 0.49% expense ratio
iShares 20+ Year Treasury Bond ETF (TLT) — 0.15% expense ratio
JPMorgan International Bond Opportunities ETF (JPIB) — 0.50% expense ratio
IDX Dynamic Fixed Income ETF (DYFI) — 1.12% expense ratio
Invesco Taxable Municipal Bond ETF (BAB) — 0.28% expense ratio
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) — 0.14% expense ratio
iShares Core U.S. Aggregate Bond ETF (AGG) — 0.03% expense ratio
iShares MBS ETF (MBB) — 0.04% expense ratio

Capital Group U.S. Large Growth ETF (CGGG) (Equity) — 0.39% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is CGSM and what does it track?

The Capital Group Short Duration Municipal Income ETF (CGSM) is a fixed-income ETF managed by Capital Group. It aims to provide current income that is exempt from regular federal income tax, while maintaining a short duration profile to preserve capital.

What is the expense ratio for CGSM?

The expense ratio for the Capital Group Short Duration Municipal Income ETF (CGSM) is 0.25%. This means that for every $10,000 invested in the fund, investors will pay $25 in annual fees.

While there isn't a readily available category average for short duration municipal bond ETFs, the expense ratio appears competitive within the broader fixed income ETF landscape.

What are the top holdings in CGSM?

As of 2026-03-15, CGSM's sector allocation is 100% in Cash & Others. Due to the nature of the fund's investment strategy, specific bond holdings are not readily available.

However, the fund invests primarily in municipal bonds and other debt instruments, with at least 80% of its assets in securities that provide income exempt from regular federal income tax.

Is CGSM a good long-term investment?

Whether CGSM is a suitable long-term investment depends on an individual investor's specific financial goals, risk tolerance, and tax situation.

CGSM aims to provide current income exempt from federal income tax, with a focus on capital preservation through a short-duration strategy. The fund's expense ratio is 0.25%.

How does CGSM compare to similar ETFs?

CGSM differentiates itself through its focus on short-duration municipal bonds and its objective of providing tax-exempt income. With $1.09 billion in assets under management, it is a sizable player in the short-duration municipal bond ETF market.

Its expense ratio of 0.25% is competitive.

Does CGSM pay dividends?

As of 2026-03-15, the Capital Group Short Duration Municipal Income ETF (CGSM) has a dividend yield of 0.00%.

While the fund's investment objective is to provide current income, the actual distribution of dividends may vary depending on market conditions and the performance of the underlying municipal bonds. Investors should review the fund's historical dividend payments and consult its prospectus for more information on its distribution policy.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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