08/21/2025 | Press release | Distributed by Public on 08/21/2025 14:09
Capital Group Fixed Income ETF Trust Prospectus Supplement August 22, 2025 |
For the following trust with the most recent summary and statutory prospectus (as supplemented to date):
Capital Group Core Bond ETF (CGCB) |
1. The information under the heading "Investing in future delivery contracts" in the "Principal risks" section of the summary and statutory prospectus for Capital Group Core Bond ETF and Capital Group Core Plus Income ETF funds are amended to read as follows:
Investments in future delivery contracts - The fund may enter into transactions involving future delivery contracts, such as to-be-announced (TBA) contracts and mortgage dollar rolls. These contracts involve the purchase or sale of mortgage-backed securities for settlement at a future date and predetermined price. When the fund enters into a TBA commitment for the sale of mortgage-backed securities (which may be referred to as having a short position in such TBA securities), the fund may or may not hold the types of mortgage-backed securities required to be delivered. The fund may choose to roll these transactions in lieu of settling them.
When the fund rolls the purchase of these types of future delivery transactions, the fund simultaneously sells the mortgage-backed securities for delivery in the current month and repurchases substantially similar securities for delivery at a future date at a predetermined price. When the fund rolls the sale of these transactions rather than settling them, the fund simultaneously purchases the mortgage-backed securities for delivery in the current month and sells substantially similar securities for delivery at a future date at a predetermined price. Such roll transactions can increase the turnover rate of the fund and may increase the risk that market prices may move unfavorably between the original and new contracts, potentially resulting in losses or reduced returns for the fund.
2. The information under the heading "Investing in future delivery contracts" in the "Principal risks" section of the statutory prospectus for Capital Group Core Bond ETF, Capital Group Core Plus Income ETF and Capital Group Short Duration Income ETF fund is amended to read as follows:
Investments in future delivery contracts - The fund may enter into transactions involving future delivery contracts, such as to-be-announced (TBA) contracts and mortgage dollar rolls. These contracts involve the purchase or sale of mortgage-backed securities for settlement at a future date and predetermined price. When the fund enters into a TBA commitment for the sale of mortgage-backed securities (which may be referred to as having a short position in such TBA securities), the fund may or may not hold the types of mortgage-backed securities required to be delivered. The fund may choose to roll these transactions in lieu of settling them.
When the fund rolls the purchase of these types of future delivery transactions, the fund simultaneously sells the mortgage-backed securities for delivery in the current month and repurchases substantially similar securities for delivery at a future date at a predetermined price. When the fund rolls the sale of these transactions rather than settling them, the fund simultaneously purchases the mortgage-backed securities for delivery in the current month and sells substantially similar securities for delivery at a future date at a predetermined price. Such roll transactions can increase the turnover rate of the fund and may increase the risk that market prices may move unfavorably between the original and new contracts, potentially resulting in losses or reduced returns for the fund.
Keep this supplement with your summary and statutory prospectus.
Lit. No. ETGESU-001-0825P CGD/10039-S109624