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.
FBCG is an actively managed large-cap growth ETF, aiming to outperform passive peers via strategic active stock picks and agile portfolio adjustments. The fund's performance excels during momentum-driven bull markets but suffers deeper drawdowns in corrections, reflecting its higher-risk, higher-reward profile. Despite reasonable fees and consistent alpha in favorable cycles, FBCG lacks defensive agility during sustained downturns, limiting its long-term outperformance.
The Fidelity Blue Chip Growth ETF closely tracks large-cap growth index ETFs like IWF and VUG, offering similar risk-adjusted returns but at a higher expense ratio. The ETF is heavily weighted toward tech and consumer discretionary sectors, with performance hinging on continued AI and tech sector strength. Technical momentum is strong, with a recent breakout above previous highs and bullish indicators suggesting further upside potential.
FBCG's heavy tech and Mag7 exposure offers high-growth potential but increases idiosyncratic risk and volatility versus the S&P 500. Recent performance has shown strong momentum, but risk-adjusted returns have lagged. Slowing economic growth, labor market weakness, and higher inflation create a challenging backdrop for growth funds like FBCG in the near term.
After a strong 2024, Fidelity ETFs gathered approximately $10 billion in the first four months of 2025. Demand for actively managed products has been a key driver as Fidelity leans further into the ETF market.
Fidelity Blue Chip Growth ETF offers a prime buying opportunity due to its fundamental analysis and bottom-up stock picking approach, focusing on high-growth sectors. The current market selloff has created attractive valuations, especially in tech stocks, making FBCG's portfolio of high beta stocks poised for recovery. FBCG's significant exposure to technology, communications, and consumer cyclical sectors, along with top holdings like NVIDIA and Meta, and Netflix enhances its growth potential.
Retail investors do not need to worry about picking individual stocks to ensure steady returns.
Many investors favor blue chip stocks for their stability. This stability makes a blue chip ETF a familiar option during periods of market and economic stress.
FBCG offers investors exposure to blue chip U.S. large cap growth equities. The fund's gross expense ratio of 0.60% is significantly higher than comparable index ETFs and somewhat higher than comparable active ETFs. FBCG has delivered solid performance historically but has done so with elevated volatility.
On this episode of “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth joined Chuck Jaffe of Money Life to talk about the Fidelity Blue Chip Growth ETF (FBCG). Chuck Jaffe: One fund, on point for today; the expert to talk about it.