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. Now, active ETFs are contributing significantly to the overall pace of ETF launches. From the edges of the ETF world, active ETFs have now taken center stage. In that context, one particular active growth ETF might be quietly reaching sleeper-hit status.
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That ETF, the American Century Focused Dynamic Growth ETF (FDG), presents an intriguing case for that title. FDG has outperformed the SPDR S&P 500 ETF Trust (SPY) over the first half of the year. The active growth ETF charges a 45 basis point (bps) fee for its active approach.
FDG looks for large and mid-cap U.S. firms with the potential for rapid growth and high profits. That broad remit to lean into its managers’ experience and American Century’s research capabilities has helped it perform very well.
FDG has returned 27.7% over the last one-year period, per American Century Investments data. That outperformed its benchmark, the Russell 1000 Growth Index, over that one year. Notably, that performance marker has helped the active growth ETF outperform its ETF Database Category and Factset Segment averages. Those come in at 20.5% and 15.75% respectively.
Active Growth ETF FDG’s Tech Action
FDG’s active growth ETF approach is seeing strong tech chart momentum.
Looking at its tech chart, the strategy is sending a key buy signal, with its price above both its 50 and 200-day Simple Moving Averages (SMAs). So what is the strategy’s outlook moving forward? Rate cuts could arrive just in time to wrap up a strong year for the active growth ETF. For those on the lookout for a greater active ETF allocation, FDG could appeal.
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