Active ETFs took off in 2023 and, in many ways, had their moment to shine. Given that big step forward, investors may be on the lookout for standouts within the world of active strategies.
With expectations that the Fed will — at some point — cut interest rates, an active growth ETF may stand out specifically. One particular strategy may be the active growth American Century Focused Dynamic Growth ETF (FDG ), which is sending a red hot buy signal per YCharts.
See more: Active Growth ETF FDG Among Top 10 Mature Performers Over Last Year
According to YCharts, the strategy’s price has risen above both its 50-day and 200-day simple moving averages (SMAs), traditionally seen as a buy signal. Its price sat at $80.88 as of March 19 compared to $76.27 and $68.28, respectively. Intriguingly, its 50-day SMA sits much higher than its 200-day SMA, suggesting that its price momentum has a strong foundation.
Active Growth ETF FDG's Approach
So, how then does the strategy invest? FDG actively invests for a 45 basis point fee. The strategy, which launched in March 2020, invests in large and midcap firms showing potential for rapid growth and profitability.
That active approach empowers its managers to overweight or underweight firms based on their own experience. At the same time, it gives them freedom to move quickly if rate cuts arrive, or, on the other hand, if they are significantly delayed relative to market expectations. In doing so, FDG has returned 46% over the past year per VettaFi data.
Technical analysis and returns can’t predict future performance, of course. That said, the strategy is showing signs of strong momentum. Investors looking for more active ETFs, then, may want to consider FDG on their active shortlist.
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