CGGR: The Low‑Profile Growth ETF That’s Outpaced the S&P Every Year Since 2022

When you think of a growth‑focused exchange‑traded fund that consistently beats the S&P 500, the first names that usually pop up are the big‑ticket, high‑turnover vehicles that dominate the headlines. CGGR – the Capital Group Growth ETF – is hardly ever mentioned in that conversation, yet since its debut on 22 February 2022 it has slipped past the benchmark in each complete year of trading.

The fund trades on NYSE Arca under the ticker CGGR and carries a net expense ratio of 0.39%. That number might look a little high compared with some passively managed index funds, but it’s actually fairly gentle for an actively managed, multi‑manager share class. Capital Group teams a handful of portfolio managers – Alan Wilson, Anne‑Marie Peterson, Julian Abdey, Andraz Razen, among others – who all draw from the firm’s deep stock‑picking engine known as “The Capital System.” The idea is simple: pool diverse research viewpoints, avoid a single‑manager bias, and let the best ideas rise to the top.

What makes CGGR stand out is its unwavering focus on growth‑oriented equities, especially in the technology sector. At the most recent quarter‑end, the top six holdings accounted for roughly a third of the portfolio, with names like Meta Platforms (≈6.5 %), Tesla (≈5.3 %), NVIDIA (≈5.0 %), Broadcom (≈4.9 %), Micron Technology (≈4.8 %) and Microsoft (≈3.6 %). Those stocks are the very engines that have been propelling the broader market’s rally over the past few years, and CGGR’s heavy tilt means it rides those waves more aggressively than the benchmark.

Performance‑wise, the numbers speak for themselves. In 2022, the ETF returned about 15 % versus the S&P 500’s 14 % gain. The following year, when the market was battered by inflation worries and rate hikes, CGGR still managed a double‑digit upside, outpacing the index by roughly 2‑3 percentage points. Even in 2024, despite a short‑term dip caused by a tech‑sector wobble and heightened AI‑related capital‑expenditure concerns, the fund stayed ahead of the S&P on a year‑to‑date basis.

It’s worth noting that the recent slip isn’t a sign of structural weakness. The author of a recent Seeking Alpha piece points out that the slowdown is largely tied to a temporary “AI CAPEX” premium and margin pressure in some semiconductor names – factors that could easily reverse as the cycle matures. In other words, the under‑performance is more a reflection of market timing than a flaw in the fund’s strategy.

With about $24 billion in assets under management as of mid‑2026, CGGR has attracted a solid base of investors who appreciate the blend of active oversight and growth‑centric exposure. While the expense ratio of 0.39 % is higher than a pure index fund, many argue that the added cost is justified by the consistent outperformance and the depth of Capital Group’s research process.

If you’re looking for a growth ETF that doesn’t scream for attention but quietly delivers results, CGGR deserves a closer look. Its track record of beating the S&P 500 every full year since inception, combined with a disciplined, multi‑manager approach, makes it a compelling option for investors who want exposure to high‑growth stocks without the volatility of a single‑manager, high‑turnover fund.