ETFs
FDG among the best performers in the first half of 2024
Active ETFs have had a banner year and a half, gaining credibility and flow as investors understand their content. In this space, investors can find all kinds of strategies, from factor strategies to smart beta “passive plus” opportunities. Of course, within this space, some notable players still stick to the classic active approach. Active growth ETF FDG stands out in this category, with strong performance year-to-date.
Learn more: As Advisors Underweight Large-Cap Growth, Try FDG
THE Dynamic growth ETF focused on the American century (FDG C+), returned 33.6% over the past one-year period, according to data from American Century Investments. Among ETFs with at least $200 million in assets under management, a three-year track record, and fees less than 50 basis points (bps), FDG ranked in the top fifteen based on portfolio returns. last year.
This makes the case for the strategy that stands out in the active growth ETF landscape. The strategy seeks large and mid-cap US companies with high growth and profitability potential. FDG is also currently sending a buy signal via its tech chart on YCharts. The strategy’s price reached $85.8, above its 50-day simple moving average (SMA) of $81.7 and its 200-day simple moving average (SMA) of $72.8.
So why turn to an active growth ETF like FDG for the rest of the year? Investors often still want some exposure to growth in their portfolio, but a standard growth index could run into some problems. Interest rates and inflationary headwinds remain a problem. Election-related market emotion could also be a problem. Finally, the risk of concentration, with the potential threat of an AI bubble in the markets, deserves discussion.
The FDG Active Growth ETF can use its active mission to adapt to these issues, while taking a more in-depth approach to understanding potential investments. For those looking to add active options, FDG may stand out as an option to watch.
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