FDG: Proven Returns Make This An Interesting Growth ETF

2025-03-05 23:57:40 ET

Summary

• FDG is an actively managed ETF that invests in 30-45 mid- to large-cap growth companies and has outperformed the Russell 1000 Growth ETF benchmark since inception.
• Despite skepticism towards actively managed ETFs, FDG has consistently beaten its benchmark with a 0.45% expense ratio, offering strong returns.
• The fund's portfolio is distinct, focusing on consumer discretionary, reduced tech holdings, and smaller growth stocks, contributing to its outperformance.
• FDG has a beta of 1.1, indicating higher volatility, but given the fund's outperformance, it's a good way to play the Russell Growth 1000 ETF.

What is FDG?

The American Century Focused Dynamic Growth ETF (BATS: FDG ) is an actively managed exchange-traded fund (also known as ETF) that invests in a concentrated portfolio of mid to large-cap growth companies with long-term capital appreciation potential. American Century, the parent company of the fund, pitches that they can tap into the revenue and profit growth potential of companies in their early and rapid-growth stages and invest in ~30-45 companies with a competitive advantage, profitability, growth, and scalability, that will outperform the Russell 1000 Growth ETF benchmark. And over the last several years, they have done an incredible job....

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