Markets are broadening beyond the dominance of U.S. technology stocks, creating opportunities across international equities, value stocks and fixed income. The Capital Group ETF platform has captured this shift since entering the market four years ago this week.
Three of the firm’s original funds spanning international growth, U.S. value and core bonds delivered returns ranging from 6.46% to 31.37% over the past year. Meanwhile, they attracted more than $14.9 billion in combined fund flows, according to ETF Database.
Capital Group’s 2026 Outlook highlighted this market shift away from a narrow group of U.S. technology stocks. The report noted that Japan’s markets gained 24% through November while Europe climbed 30%, compared to the S&P 500’s 18% gain over the same period.
The firm’s chair and chief investment officer Martin Romo wrote in the report that markets are “moving from a binary market environment in which U.S. tech stocks dominated returns to a more balanced one with a broadening opportunity set.”
The Capital Group International Focus Equity ETF (CGXU) captured this international resurgence with returns of 31.4% for the year, according to ETF Database. The foreign large-growth fund accumulated $801.7 million in flows over the past year while managing $5.1 billion in total assets.
The fund’s boots-on-the-ground research model proved effective in finding growth opportunities outside expensive U.S. markets, according to Capital Group. CGXU maintains positions across 71 issuers spanning developed and emerging markets.
Meanwhile, the Capital Group Dividend Value ETF (CGDV) returned 25.2% over the past year, according to ETF Database. The fund manages $30.4 billion in assets after drawing $11.5 billion in flows over the past 12 months.
The strategy combined income generation with growth by holding high-conviction technology names like Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA) alongside traditional value stocks, according to the fund’s year-end factsheet. The fund holds 52 issuers with a portfolio turnover rate of 29%, as of last year
Fixed Income Gains Traction
Across fixed income, the Capital Group Core Plus Income ETF (CGCP) returned 6.46% over the past year, according to ETF Database. The bond fund attracted $2.6 billion in flows over the past year and manages $7.1 billion in assets.
Using active rotation across mortgage-backed securities and corporate debt, the fund generates income exceeding core bond funds, according to Capital Group. CGCP holds 1,386 positions with an effective duration of 5.8 years.
The 2026 Outlook emphasized bonds’ role as portfolio ballast in an environment of elevated equity valuations and economic uncertainty. The report noted that Federal Reserve rate-cutting cycles outside of recessions have historically delivered strong returns for high-quality bonds.
Over the past four years, the diversified approach across international equities, dividend-paying stocks and core bonds has positioned the platform to capture what the outlook describes as “opportunities and risks” everywhere in an environment where “market broadening is an ideal environment for stock pickers.”
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