Investors and advisors look for a few important factors when assessing an investment strategy. While fees and style box classifications are important considerations, few factors carry as much weight as pure performance. Especially in an uncertain market environment like 2026, a strategy that offers steady, rising returns is particularly appealing. The active growth ETF, FDG, serves as a prime example, with its continuous outperformance building towards a mid-year crescendo.
Key Takeaways:
- 2026 has plenty of volatility, but investors still want portfolios that can grow and even accelerate.
- As an active growth ETF, FDG fits this role, providing the consistent, upward trajectory that investors are currently seeking.
- Its adaptability and remit to look at firms like RKLB suggest that the momentum will continue through the year.
The American Century Focused Dynamic Growth ETF (FDG ) launched in 2020. Since then, it has regularly outperformed the ETF Database Large Cap Growth Equities category average. Since the start of 2026, the fund has particularly stood out with its growing returns. While the overall return is 7.6% on a YTD basis, that number climbed to 12.76% over the last three months and 14.6% in the last month. Additionally, FDG has consistently outperformed its category average throughout this time.
So what exactly is the strategy driving this performance? The fund invests in large- and mid-cap U.S. firms that combine growth potential and strong profits. That broad remit does empower its managers to target both the big names already driving portfolio growth as well as potential standouts. While the fund reports its holdings on a delay, ETF Database data indicates that portfolio features big names like Nvidia (NVDA) and other notable high-growth firms such as Rocket Labs (RKLB).
Last week, Rocket Labs celebrated its best day on record after posting strong earnings and a record-setting launch deal with the Department of Defense. The stock exemplifies the type of company FDG targets: firms with proven track records that still possess significant growth runways.
Digging a little digger, one can see that FDG has displayed strong performances over an even longer period. Since launch, FDG has returned 255%, outpacing the 214% return provided by the S&P 500 Total Return index, according to YCharts data.
See more: American Century’s Greenblath on Bond Outlook
Furthermore, the fund’s tech chart is showing quite a bit of healthy momentum. The strategy’s price has risen above its 50 and 200-day Simple Moving Averages (SMA), a traditional momentum indicator.
Together, the active growth ETF could make a strong core plus offering for investors to consider. With 2026 offering a lot of questions, FDG seems it may have answers.
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