A year ago, the Fidelity Blue Chip Growth ETF (FBCG ) was named ETF of the Week. It may be even more relevant today, given the questionable valuations in certain large-cap growth companies. As such, FBCG should be a staple fund in a portfolio for investors looking to maintain their exposure to large-cap growth in 2026.
Artificial intelligence-themed companies certainly propelled the stock market to greater heights in 2025. Near the tail of end of the year, however, market experts questioned whether certain companies benefiting from the AI theme had the underlying fundamentals to support their lofty valuations. Because of this, more caution may be warranted in 2026.
Investors looking to maintain their exposure to large-cap growth in the new year will want a discerning fund with experienced portfolio managers who can identify these growth opportunities in blue chip names. This means selecting companies primed for growth in the near future and the long term. FBCG does just that.
Fidelity portfolio manager Sonu Kalra described the investment philosophy behind FBCG in a recent video.
“My investment philosophy focuses on identifying companies that are participating in large underpenetrated markets where investors are not only mispricing the absolute rate of growth but also the durability of the growth,” said Kalra.
“I also try to identify companies that have sustainable business models, high or improving returns on capital, and above-average revenue and earnings growth,” Kalra added. “I work closely with my research team to identify these companies that can fit in this profile for the blue chip growth strategy.”
Active and Flexible
Because FBCG is actively managed, it inherently carries a risk component. That allows its portfolio managers to adjust the fund’s holdings to suit current market conditions. Whether it’s to add more exposure to capture upside or reduce exposure to mitigate downside risk, active managers have the autonomy to make those decisions.
Given the flexibility of FBCG, the fund could work as a core, standalone equities allocation in a portfolio. Additionally, it could also work in tandem with other factor ETFs that focus on quality or value, such as the Fidelity Quality Factor ETF (FQAL ) or Fidelity Value Factor ETF (FVAL ).
To learn more about FBCG, click here.
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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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