Active investing took the ETF landscape by storm last year. Investors flocked to active strategies despite their smaller AUM totals. Actively-managed funds offer both flexibility for volatile markets and potential outperformance. With the Fed sending signals about rate cuts, and the market looking up, it may be time to look to an active growth ETF, with FDG among the top ten ETF performers with track records longer than three years.
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The American Century Focused Dynamic Growth ETF (FDG ), launched in March, 2020. The strategy charged 45 basis points (bps) for its approach. In doing so, it has returned 50% over the last year. That outperformed both its ETF Database Category and Factset Segment averages. That return over one year places the active growth ETF in the top ten, too.
The strategy charges less than some of those rival strategies in the top ten, too. The ETF’s 45 bps fee comes in cheaper than rival strategies from T. Rowe Price or Fidelity Investments. What’s more, FDG right now is in the top five performers in this category on a YTD basis, returning 12.5% in that time.
How does it deliver those returns, then? The strategy looks for large and mid-cap U.S. firms with potential of rapid growth and profits. In doing so, it holds those megacap tech names like NVIDIA (NVDA), but also other firms like Chipotle (CMG) and Regeneron Pharmaceuticals (REGN).
Taken together, the strategy could appeal should the economy continue to look up. An active growth ETF could outperform passive growth strategies that sticks to index and can’t over or underweight firms like actives can. Overall, FDG presents an intriguing play for those investors looking for such an approach.
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