CGDV: A Mix Of Value And Exuberance
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The Capital Group Dividend Value ETF (CGDV) presents a mix of low P/FCF value stocks and high-valuation popular stocks like the MAG 7. Investors should be cautious as high past returns may lead to future underperformance due to stretched valuations.

March 11, 2025 | 12:00 pm
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The Capital Group Dividend Value ETF (CGDV) combines low P/FCF value stocks with high-valuation popular stocks, potentially leading to future underperformance due to stretched valuations.
CGDV's combination of low P/FCF value stocks and high-valuation popular stocks like the MAG 7 suggests a potential for future underperformance. High past returns often lead to stretched valuations, which can result in lower future returns.
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