Fidelity Fundamental Large Cap Growth ETF

FFLG

Market cap $565M

VettaFi's Midyear Market Outlook symposium Thursday saw industry leaders take on the big questions. Where is the market going?

Several ETFs have added exposure to Space Exploration Technologies (SPCX) after the aerospace giant completed the largest initial public offering in market history. Trading on the Nasdaq, SpaceX surged 19% from its initial $135 offering price to close at $160.95 per share, notching a historic $2.1 trillion valuation.

FFLG has returned 44% over the past year, beating both the S&P 500 and Nasdaq 100 over the same stretch.

Fidelity Fundamental Large Cap Growth ETF (FFLG) earns a buy rating, driven by superior returns, attractive valuation, and disciplined active management. FFLG's 91% three-year and 25% twelve-month price returns outpace VUG, VOOG, and CGGR, supported by high-conviction tech and semiconductor exposure. The fund's low $28 share price and 0.18% expense ratio enhance accessibility and cost efficiency for retail investors seeking large-cap growth.

Most large-cap growth investors default to QQQ or VUG and never look back. That instinct is reasonable, but it has cost them returns over the past year.

With the world of exchange traded funds, investors have plentiful options to choose from not only in terms of the vast number of products available in the market (more than 10,000) but the number of ETF providers as well.

Fidelity Fundamental Large Cap Growth ETF is an actively managed ETF favoring large-cap names with "above-average growth potential." The growth factor-centered approach secured FFLG's solid gains since the strategy change in February 2024, as it outperformed IVV and IWB. Nevertheless, since then, it has trailed QQQM, IWF, and SCHG, delivering higher volatility and a deeper maximum drawdown.

Fidelity Fundamental Large Cap Growth ETF offers high-conviction exposure to mega-cap tech and communication services, trading at a premium to broad indexes. FFLG's concentrated portfolio drives above-average volatility and a high beta, amplifying both upside and downside market moves compared to peers. While FFLG outperforms the Russell 1000, it lags most growth ETF peers in risk-adjusted returns and has a relatively high expense ratio and turnover.

With the end of the year on the horizon, investors often reflect on insights from the market's performance. Three ETFs from Fidelity Investments can offer some notable takeaways as they are likely to end 2024 as the firm's top ETF performers.

July brought with it a market rotation mid-month as investors pivoted from large-cap to small-cap stocks. Investors looking to hone their existing large-cap portfolio with an actively managed strategy may consider the Fidelity Fundamental Large Cap Core ETF (FFLC).