These days, it’s becoming harder to look at the headlines and not worry about how the news will affect one’s investing. Macro concerns don’t seem to be slowing down any time soon, either. Tensions in the Middle East are continuing to ratchet up. The weaker-than-expected CPI report has raised new doubts about inflation projections. Meanwhile, back-and-forth tariff negotiations don’t appear to be getting any closer to a compromise.
With so many moving parts on the board, many investors are still trying to figure out how to position their portfolio to navigate the chaos. Surprisingly, the solution may prove to be far more straightforward than some are expecting.
At this point, it’s too difficult to predict where macroeconomic conditions will take the market in the near term. Instead, advisors and investors should ignore the noise and focus on building a portfolio geared toward long-term results.
Importance of Long-Term Investing
A recent article from the American Century Investments team broke down the advantages of pivoting toward long-term strategies. The article, penned by Keith Lee, CFA, co-chief investment officer of global growth equity for American Century Investments, explained why a patient portfolio may prove to be the best path forward. In fact, he noted that short-term volatility could open up attractive opportunities for buying discounted companies.
“We maintain a long-term investment perspective for the companies in our portfolios, often looking at them over many years,” Lee added. “Our evaluation process spans the entire corporate life cycle rather than focusing solely on quarterly performance. Therefore, when there’s significant short-term volatility, we can identify companies trading at appealing prices compared to our long-term estimates of their fair values.”
While there are many different methods available for playing for long-term growth, an active ETF can bring attractive flexibility to a portfolio. One such fund is the American Century Focused Dynamic Growth ETF (FDG ).
FDG looks to tap into long-term growth opportunities through disciplined stock selection. This bottom-up process looks for companies with competitive fundamentals that are in the early stages of their growth cycle. Given the ongoing market volatility, FDG’s strategy and active management could be in pole position to capture companies trading at attractive discounts.
Thus far, FDG’s strategy has paid off in both the near and long term. As of May 31, 2025, the fund’s NAV has risen nearly 24% over the last 12 months. Meanwhile, FDG’s NAV rose over 9% in the month of May alone.
For more news, information, and analysis, visit the Core Strategies Channel.
