2024 was an incredible year for exchange-traded funds (ETFs) as an investment vehicle, with investors funneling a record-breaking $1.1 trillion in new assets into these funds. With new ETFs launching all the time, investors now have more than 12,000 different options from which to choose.
2024 has seen all kinds of ETFs stand out, but when it comes to beating the S&P 500, this large cap growth ETF may offer a particular appeal. The market has delivered some significant returns in 2024, but when looking to 2025, finding a strategy with a strong process to continue that momentum matters.
Actively managed equity ETFs have continued to gain traction in 2024 and risen in value. Some of the top performing funds were focused on in vogue, large-cap growth stocks such as the American Century Focused Dynamic Growth ETF (FDG) and the Fidelity Blue Chip Growth ETF (FBCG).
ETFs have become popular in recent years, but as the space has grown, it's been harder for individual funds to break out. One ETF in particular, however, may be poised to explode out of the blocks.
Are U.S. investors set for a soft landing? It increasingly seems that way, especially compared to the narrative markets saw entering this year.
Active ETFs are the hot commodity right now in the world of ETFs. Following years of toiling in relative obscurity, the ETF rule in 2019 helped the space take a new leap forward.
American Century Focused Dynamic Growth ETF (FDG) focuses on growth stocks with 40 holdings and a reasonable expense ratio of 0.45%. FDG's performance is highly dependent on the Mag 7 stocks, making it volatile and risky; a small position may work in the investor's favor. Investors are advised to tread carefully and consider hedging with broader ETFs like iShares Russell 2000 Value ETF or iShares Russell 1000 ETF.
With the first half of 2024 in the books, investors have the opportunity to look back on the year so far for takeaways. The growing role active ETFs are playing in the ETF universe presents one such lesson, with the active growth ETF FDG a standout to start the year.
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.
What better way to get a sense of an ETF than to understand its stocks? One key challenge for investors right now — avoiding overconcentration risk from the big, big tech names — merits looking for strategies outside that space.
Think you have enough allocated to large cap growth? You might be missing out.