Fidelity Blue Chip Growth ETF: High Growth Potential and Active Management, but High Expense Ratio

The Fidelity Blue Chip Growth ETF (FBCG) is a actively managed fund that invests in blue-chip stocks with high growth potential. It was launched in June 2020 and has an expense ratio of 0.59%. The fund has $4.53 billion in assets under management.

The Fidelity Blue Chip Growth ETF (FBCG) is an actively managed fund that invests in blue-chip stocks with high growth potential. Launched in June 2020, the fund has an expense ratio of 0.59% and manages $4.53 billion in assets under management.

FBCG focuses on large-cap growth stocks, aiming to provide investors with exposure to companies that have a proven track record of strong earnings growth and solid fundamentals. The fund's investment strategy involves selecting stocks that exhibit characteristics such as high price-to-book ratios, high earnings growth rates, and strong sales-per-share growth. This focus on growth stocks aligns with the broader market trend of investors seeking higher returns through growth-oriented investments.

The fund's performance has been mixed since its launch. Over the past three years, FBCG has delivered an annualized return of 15.2%, outperforming the S&P 500's 13.1% return [1]. However, the fund's high expense ratio of 0.59% is a significant consideration for investors. This expense ratio is higher than many index funds and ETFs, which typically charge between 0.01% and 0.1% in fees. The higher fees can erode returns over the long term, making it essential for investors to weigh the costs against the potential benefits of active management.

FBCG's portfolio is diversified, with over 150 holdings as of the latest available data. The fund's top holdings include well-known companies such as Apple Inc. (AAPL), Microsoft Corp. (MSFT), and Amazon.com Inc. (AMZN) [1]. This diversification helps to mitigate the risk of individual stock performance, providing investors with a more stable and balanced investment.

Investors should consider several factors when evaluating FBCG. The fund's high expense ratio and mixed performance history are notable concerns. However, the fund's focus on growth stocks and its diversified portfolio may appeal to investors seeking exposure to large-cap growth opportunities. It is essential to conduct thorough research and consider one's investment goals and risk tolerance before making any investment decisions.

References:
[1] https://money.usnews.com/investing/articles/best-fidelity-mutual-funds-to-buy-and-hold