With 2024 well and truly underway, investors may be asking themselves how to move in an uncertain new year. Amid that uncertainty, it may be worth looking at which strategies shined in 2023.
2023 of course saw more than the usual amount of uncertainty amid the Fed’s ongoing fight against inflation. Despite that uncertainty, blue chip ETFs proved a powerful option. FBCG, the Fidelity Blue Chip Growth ETF, was one of those strategies that navigated 2023 ably and could appeal this year, too.
FBCG has returned 50.9% over the last year per VettaFi data as of January 23. The strategy charges 59 basis points for its approach, actively investing in large cap U.S. stocks. Its managers look for firms they believe markets have mispriced, which also have sustainable business models and earnings growth potential. The strategy’s current holdings include big names from the Magnificent Seven, of course, but also other large firms like Eli Lilly (LLY).
The strategy’s ability to nimbly move in and out of large firms allows it to combine market leaders with some other intriguing picks. In 2023, blue chip firms were able to navigate rapid rate hikes better than. For example, previous market darlings like small, disruptive tech names. So what is the outlook for blue chip investing in 2024?
As mentioned above, interest rates loom large over the U.S. market in 2023. Specifically, markets are excited about the potential of several rate cuts. Whether the number of cuts does meet expectations or not, even some rate cuts would boost the economy significantly. That would also, of course, improve the outlook for some large firms. What’s more, with active strategies gaining momentum, blue chip ETFs that add an active approach could also benefit.
Taken together, blue chip ETFs like FBCG could be a solid option for this year. Combining sustainable business models with impressive track records, blue chip firms also offer dividends with the potential to even further bolster portfolios. For investors on the lookout for such a strategy, FBCG could be one to watch.
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