Fidelity Investments’ blue chip growth ETF has generated attractive returns for investors.
The Fidelity Blue Chip Growth ETF (FBCG ) is a U.S. equity growth strategy with a large-cap bias. The active ETF is handily outpacing its benchmark, making it worth highlighting.
FBCG’s total return was 51.66% over the last year as of October 31, while the benchmark Russel 1000 Growth index was up 43.77% during the same period.
Active Management Makes the Difference for the Blue Chip Growth ETF
Fidelity’s $2.4 billion blue chip growth ETF stands out from the benchmark due to its active management team’s unique approach to identifying blue chip companies. The fund defines blue chip companies as those with sustainable business models, high and/or improving returns on equity, and above-average revenue and earnings growth characteristics.
The portfolio management team uses bottom-up fundamental analysis to identify investment opportunities. Companies with exposure to secular tailwinds and business models that can capture a growing share of large addressable markets are of particular interest, according to FBCG portfolio manager Sonu Kalra.
See more: Blue Chip Growth ETF FBCG Among Top Five Active ETFs YTD
Furthermore, FBCG seeks companies with competitive advantages, barriers to entry, pricing power, and strong management that have the potential to deliver superior earnings over the long term.
Quantitatively, the fund aims to invest in companies that consistently achieve +10% EPS growth annually.
This means that some portfolio holdings are mega-cap companies with recognizable brand names, such as NVIDIA (NVDA), Apple Inc (AAPL), or Amazon.com (AMZN), as of September 30.
The fund also holds smaller emerging growers that have not yet become widely appreciated by the market, such as MakeMyTrip (MMYT), Fluor Corp (FLR), or Sweetgreen (SG), as of September 30.
FBCG charges 59 basis points, a competitive price for quality active management.
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
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