Capital Group and BlackRock expand active ETF lineups as advisors embrace portfolio flexibility

Capital Group and BlackRock both unveiled new active ETFs this week, signaling continued innovation in the category as demand from financial advisors and asset allocators pushes the wrapper into new territory.

On Thursday, Capital Group launched three active ETFs: the Capital Group US Large Growth ETF (CGGG), Capital Group US Large Value ETF (CGVV), and the Capital Group High Yield Bond ETF (CGHY). The funds are designed to serve as core building blocks for model portfolio builders, particularly registered investment advisors (RIAs).

With the launch, the firm is also taking another step afield from its mutual fund roots. It now offers 25 ETFs in the US, managing more than $66 billion in ETF assets – one-fifth of which comes from RIAs, according to the firm. The new ETFs are part of a broader strategy to deepen the firm’s foothold in the RIA channel, which it has increasingly targeted since entering the ETF market in 2022.

Beyond that, Capital Group’s new ETFs directly target the needs of advisors managing fee-based, discretionary portfolios – especially RIAs looking for actively managed, tax-efficient core allocations.

“We’ve introduced two new US equity ETFs that provide highly focused growth and value exposures for model portfolio builders,” said Scott Davis, head of ETFs at Capital Group, in a Thursday release. “We’ve also brought our high yield investing capabilities into the ETF wrapper.”

These funds follow Capital Group’s rollout of active ETF model portfolios earlier in 2025 and come alongside tools like RIA Insider, the firm’s advisor platform offering portfolio consultation, customizable marketing materials, and client-ready content. 

Also on Thursday, BlackRock introduced the iShares Global Government Bond USD Hedged Active ETF (GGOV), a strategy offering diversified sovereign bond exposure with a built-in currency hedge. Managed by BlackRock’s Global Tactical Asset Allocation team, GGOV draws from the same macro expertise that supports the firm’s $50 billion Tactical Opportunities platform and expands BlackRock’s $52 billion US active ETF suite.

While not positioned specifically for model portfolios, BlackRock’s GGOV responds to another potential advisor need: how to navigate global bond markets in a high-rate, high-volatility environment where the primacy of US sovereign bonds is increasingly coming into question.

“USD-hedged global government bonds have historically generated higher yields with lower volatility compared to comparable US-only bond indices,” said lead portfolio manager Tom Becker said Thursday. The ETF blends discretionary and systematic insights and seeks to diversify away from concentrated US Treasury exposure while hedging currency risk.

GGOV benchmarks against the Bloomberg Global Treasury USD Hedged Index and represents BlackRock’s ongoing push to offer institutional-grade strategies in ETF format – particularly in fixed income. It also comes as BlackRock maintains its dominance in advisor-distributed model portfolios, with $168 billion in model assets and capturing more than 80% of net flows into model portfolios in 2024, according to the newest model portfolio research from Morningstar.

The launches from both firms arrive as financial advisors increasingly emphasize portfolio construction over product selection, driven by growing adoption of fee-based models and centralized investment processes.

According to Morningstar, assets in third-party model portfolios reached $645 billion as of early 2025, a 62% increase from mid-2023. Net flows totaled $37.8 billion in 2024 alone. As it stands, 44% of model portfolios now include at least one active ETF, and the average active ETF allocation is 33%.