Fidelity’s Active Large-Cap Growth ETF FFLG Is Winning the Battle but Losing the War
Fidelity's Active Large-Cap Growth ETF (FFLG) has outperformed its benchmarks over the past year, but its five-year returns are lower than expected. The fund's concentration risk, cost, and macro sensitivity are key concerns for investors to consider.
Fidelity's Active Large-Cap Growth ETF (FFLG) aims to provide long-term growth by investing in large-cap companies with above-average growth potential. The fund is actively managed, with a human manager making conviction calls. Over the past year, FFLG returned 25%, outperforming its benchmarks. However, its five-year returns are lower, with a 49% return compared to 80% for QQQ and 64% for SPY. The fund's top holdings include NVIDIA, Apple, and Microsoft, which together represent a significant portion of the portfolio. Concentration risk, cost, and macro sensitivity are key concerns, with the fund carrying a 0.4% expense ratio and being sensitive to rate moves.
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