The Fidelity Magellan Fund: From Fund Star to ETF Contender

Core Insights - The Fidelity Magellan Fund (FMAGX) has a long history and has evolved into an ETF format, which is relevant as it approaches its five-year anniversary [1][4]. Fund Overview - FMAG, the Fidelity Magellan ETF, was launched in February 2021 and charges a fee of 57 basis points, similar to its predecessor FMAGX [2]. - The fund employs an active investment strategy, focusing on fundamental analysis and investing in companies worldwide that meet value or growth criteria [2]. Performance Analysis - As of January 15th, FMAG has outperformed the S&P 500 over the last three years, returning 21.2% compared to the index's 20.1% [3]. - The fund's performance has been stable, contributing to long-term growth for its investors [3]. Market Positioning - With its fifth anniversary approaching, FMAG is positioned to benefit from the growing trend of active ETF performance, which has been favorable in recent years [4]. - Active ETFs like FMAG provide adaptability and fundamentals-driven investing, which can be advantageous in uncertain market conditions [4][5]. Strategic Advantages - FMAG offers a similar investment strategy to the original FMAGX but in a more cost-effective ETF format, appealing to investors seeking active ETF exposure [6]. - The reliance on manager expertise and fundamental analysis in active ETFs helps mitigate concentration risk associated with market cap-weighted indexes [5][6].