Active ETFs have had a banner year and a half, gaining credibility and flows as investors come to understand the wrapper. Within that space, investors can find all kinds of strategies, from factor strategies to smart beta “passive plus” type opportunities. Of course, within that space, some real standouts still stick to the classic active approach. The active growth ETF FDG stands out in that category, with strong performance YTD.
See more: As Advisors Underweight Large Cap Growth, Try FDG
The American Century Focused Dynamic Growth ETF (FDG), has returned 33.6% over the last one-year period per American Century Investments data. Among ETFs with at least $200 million in AUM, a three-year track record, and less than a 50 basis point (bps) fee, FDG took a top fifteen spot based on the last year of returns.
That speaks to the case for the strategy as a standout in the active growth ETF landscape. The strategy looks for large and mid-cap U.S. firms with the potential for high growth and profitability. FDG is also currently sending a buy signal via its tech chart on YCharts. The strategy’s price has reached $85.8, above both its $81.7 50-day Simple Moving Average (SMA) and its $72.8 200-day SMA.
FDG has hit a recent buy signal.
So why look to an active growth ETF like FDG for the rest of the year? Investors often still want a bit of growth exposure in their portfolio, but a standard growth index could face some problems. Interest rates and inflationary headwinds remain an issue. Election-related market emotionality could also pose problems. Finally, concentration risk, with a potential AI bubble looming over markets, bears discussion.
The active growth ETF FDG can use its active remit to adapt to those issues, while also taking a deeper approach to understanding potential investments. For those looking to add active options, FDG may stand out as one option to watch.
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