Markets continue to plow forward despite a crazy, volatile year in the news so far. Energy prices could be higher for the rest of the year, as the Strait of Hormuz crisis remains unsolved. Those higher prices are poised to drive inflation across global markets and impact fixed income, too. What’s more, concentration risk remains an issue, and pressure high on tech. So, what should investors expect from their growth stocks?
Key Takeaways:
- Investors of course want growth, but what to do in a complicated landscape this year?
- Active investing is a key differentiator, but a focus on blue chips, too, could prove a powerful advantage.
- FBCG offers just such an approach for investors to consider.
Growth stocks can include smaller firms, or those still growing despite already being pretty large. There are some potential advantages to focusing on the latter. Those bigger firms can prove more durable in volatility, with the potential to withstand issues like, for example, rising prices. An active investing approach especially can help investors get more out of growth stocks and handle potential market turmoil.
The Fidelity Blue Chip Growth ETF (FBCG ), for example, charges a 57 basis point fee to actively invest in large-cap U.S. stocks with sustainable business models and strong growth prospects. By combining potential for growth with steady, replicable earnings, those firms can help investors continue to meet performance goals.
That approach has helped the active growth stocks ETF return 44.7% over the last year, according to Fidelity Investments data as of April 30th. Per ETF Database data, the fund has returned 8.65% over the last month, too, outperforming the ETF Database Large Cap Growth Equities category average in that time.
See more: 3 Reasons To Try Value International Equities Now
Furthermore, looking to YCharts, FBCG has seen its price rise above its 50- and 200-day simple moving averages, implying healthy momentum. It also may make for a potential buy opportunity. Looking ahead to the rest of the year, an active approach can chase upside if things turn out better than expected — or adapt and lean more into established growth stocks if it turns out worse.
For more news, information, and analysis, visit the ETF Investing Content Hub.
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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