With hundreds of exchange-traded funds (ETFs) available in the industry today, it can become overwhelming to pick the right one.
Fidelity Blue Chip Growth ETF targets mega-cap growth stocks with heavy allocations to technology, consumer discretionary, and communication services. FBCG boasts a strong growth profile and recent outperformance, but carries high volatility, a premium valuation, and higher expenses than passive peers. The fund's sector tilts differ from peers, offering more consumer discretionary and communication services exposure, but less technology concentration than top competitors.
Investors looking to not only grow their nest egg for retirement, but also generate significant (and hopefully growing) passive income streams to live off of in retirement, have a number of excellent options to choose from.
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The investment approach of the fund centers around committing at least 80% of its assets into blue-chip companies, which are identified by Fidelity Management & Research Company LLC (FMR) as well-known, well-established, and well-capitalized entities typically with large or medium market capitalizations. The strategy focuses on investing in companies that are believed to possess above-average growth potential, often referred to as "growth" stocks. Notably, the fund adopts a non-diversified investment strategy, placing significant emphasis on selecting high-potential growth companies across different sectors.
This service involves allocating at least 80% of the fund's assets into blue-chip companies. These are enterprises that, according to FMR's analysis, are prominent, established, and possess significant capitalization, often reflecting stability and reliability in the market.
The fund targets companies believed to showcase above-average growth potential. Such investments are typically referred to as "growth" stocks, focusing on firms that manager anticipates will outperform in their respective sectors or the overall market due to innovative products, services, or operational efficiencies.