Fidelity Blue Chip Growth ETF

FBCG

Market cap $6.87B

Fidelity Blue Chip Growth ETF employs active, conviction-weighted stock selection, outperforming the Russell 1000 Growth Index over the past three years during market concentration phases. FBCG's portfolio is highly concentrated: over 60% in its top 10 holdings and 80-82% in tech, consumer discretionary, and communication services, amplifying both returns and volatility. While forward valuations in FBCG's core sectors appear reasonable, rising CAPEX and potential EPS disappointments pose significant downside risk if expected growth fails to materialize.

Markets continue to plow forward despite a crazy, volatile year in the news so far. Energy prices could be higher for the rest of the year, as the Strait of Hormuz crisis remains unsolved.

Rapid technological shifts and shifting interest rate expectations continue to define the current market environment. Amid the uncertainty, investors are looking for a reliable North Star to guide their growth allocations.

Fidelity Blue Chip Growth ETF (FBCG) is rated a buy, leveraging active management and exposure to high-growth technology and consumer cyclical sectors. FBCG outperformed major growth and momentum ETFs over the past three years, delivering a 162% price return and capitalizing on mispriced, fundamentally strong stocks. Current valuations are attractive after a recent 7% pullback, with technology and mega-cap holdings trading at multi-year low forward P/Es, positioning FBCG for recovery upside.

A year ago, the Fidelity Blue Chip Growth ETF (FBCG) was named ETF of the Week. It may be even more relevant today, given the questionable valuations in certain large-cap growth companies.

There are thousands of exchange-traded funds available in the market today. While having multiple options is great, it can also become difficult to choose the right one.

Investing in dividend-paying stocks is one way to make your money work for you. As companies grow, they generate a higher profit and share a part of the profit with the shareholders as a cash dividend.

For the quarter, the exchange-traded fund's net asset value gained 11.17% and its market price advanced 11.25%, topping the 10.51% result of the benchmark. The top individual relative contributor was an overweight in digital advertising company AppLovin (+105%). As Q4 begins, we are cautiously optimistic that the stock market will climb a "wall of worry" in the next 12 months.

Fidelity Blue Chip Growth ETF is an active, semi-transparent ETF favoring blue chip names with remarkable growth characteristics, with the flexibility to venture into developed and emerging markets. Since its inception in June 2020, FBCG has delivered an over 176% total return, beating QQQ, SCHG, IWF, IVV, and IWB. Nevertheless, speaking of risk-adjusted returns (the Sharpe and Sortino ratios), it actually underperformed QQQ, IWF, SCHG, and even the market proxied with IVV over July 2020–November 2025.

With hundreds of exchange-traded funds (ETFs) available in the industry today, it can become overwhelming to pick the right one.