Fidelity Blue Chip Growth ETF

FBCG

Market cap $4.94B

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.

For many investors, building a diversified portfolio is one of the first steps in investing. Fidelity Investments' extensive range of ETFs offers a powerful toolkit to achieve this.

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.

Despite the ETF industry's passive roots, active has stolen the show. Active ETF assets just topped the $1 trillion threshold, making up nearly 10% of the total ETF pie.

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.