An Active Solution for Blue Chip Growth in 2026

Core Insights - The Fidelity Blue Chip Growth ETF (FBCG) is positioned as a key investment for maintaining exposure to large-cap growth in 2026, especially amid concerns over valuations in certain large-cap growth companies [1] - The performance of AI-themed companies significantly influenced the stock market in 2025, but doubts about the sustainability of their valuations have emerged, suggesting a more cautious approach for investors in 2026 [1] - FBCG is actively managed, allowing portfolio managers to adjust holdings based on current market conditions, which enhances its flexibility as a core equity allocation in a portfolio [1] Investment Philosophy - The investment strategy of FBCG focuses on identifying companies in underpenetrated markets where growth is mispriced, emphasizing sustainable business models and high returns on capital [1] - Portfolio manager Sonu Kalra highlights the importance of selecting companies with above-average revenue and earnings growth for the blue chip growth strategy [1] Active Management Benefits - The active management of FBCG allows for adjustments to capture upside potential or mitigate downside risks, providing a strategic advantage in volatile market conditions [1] - FBCG can function as a standalone equity allocation or complement other factor ETFs that focus on quality or value, enhancing overall portfolio diversification [1]