Many investors favor blue chip stocks for their stability. This stability makes a blue chip ETF a familiar option during periods of market and economic stress.
Importantly, investors don’t have to forego growth when blue chip investing with the Fidelity Blue Chip Growth ETF (FBCG ). FBCG may be able to offer compelling returns while also providing the renowned stability of blue chips.
FBCG is a U.S. equity growth strategy with a large-cap bias. The fund stands out for its active management team’s unique approach to identifying blue chip companies and its outperformance over the benchmark.
The active ETF is handily outpacing the benchmark Russell 1000 Growth Index. FBCG’s total return was 34.94% over the last year as of February 19, while the benchmark Russell 1000 Growth index was up 30.10% during the same period.
Looking at a three-year period trailing February 19, the blue chip growth ETF has climbed 70.97%, outpacing the index’s 63.95% gain.
Under the Hood of Fidelity’s Blue Chip Growth ETF
The blue chip growth ETF targets companies with sustainable business models, high or improving returns on equity, and above-average revenue and earnings growth characteristics.
The 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.
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.
FBCG costs 59 basis points, which is 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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