This Fidelity Growth ETF Is Quietly Outperforming Just About Everything

Core Insights - Fidelity Fundamental Large Cap Growth ETF (FFLG) has achieved a 27% return over the past year, outperforming Invesco QQQ Trust (QQQ) at 25% and Vanguard Growth ETF (VUG) at 21%, primarily due to its active management strategy focusing on fundamental selection, with NVIDIA constituting 15.5% of its holdings [1][4][7] Performance Comparison - FFLG's one-year performance is strong, but its five-year track record is less favorable, lagging behind QQQ and VUG, which returned 90% and 83% respectively since FFLG's launch in February 2021 [2][8][9] - The fund's five-year performance is impacted by its launch timing just before a downturn in growth stocks, which may have hindered its recovery compared to passive funds [8][9] Investment Strategy - FFLG employs an active management approach, selecting holdings based on fundamental factors rather than passively tracking an index, which allows it to target sectors with the highest earnings growth [5][6] - The fund has a significant concentration in information technology, making up 44% of its assets, reflecting a strategic bet on sectors with rapid earnings growth [7] Fund Characteristics - FFLG has $495 million in assets and has recently lowered its expense ratio to 0.38%, which is competitive for an actively managed fund but still higher than many index alternatives [4][14] - The fund is designed for large-cap growth investors seeking active management, but it has a very low dividend yield of 0.02%, making it unsuitable for income-focused investors [11][14]