Fidelity Blue Chip Growth ETF: Has Market Sentiment Turned Positive?

Summary

  • FBCG is a semi-actively managed ETF selecting blue-chip growth stocks. Fees are high at 0.59%, but its mutual fund version has a solid track record dating back over 30 years.
  • I previously identified FBCG's constituents as having the best sales growth rate out of any large-cap growth ETF. However, volatility was also the highest, and it doesn't come cheap.
  • FBCG gained 14.96% in July, but this article puts that performance into context against 25 other large-cap growth ETFs. One, in particular, is worth considering.
  • This article compares this ETF's fundamentals against FBCG and examines results from the latest earnings season. After contextualizing the results, I don't think there's reason for growth investors to be overly aggressive right now.
  • Looking for a portfolio of ideas like this one? Members of Hoya Capital Income Builder get exclusive access to our model portfolio. Learn More »

Blue Chips Stock

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Investment Thesis

Today, I will review for the second time the Fidelity Blue Chip Growth ETF (BATS:FBCG), a semi-actively managed ETF launched on June 2, 2020, and managed by longtime portfolio manager Sonu Kalra. As a quick

FBCG vs. SPY Performance History

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FBCG vs. SPY Rolling Returns

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Large-Cap Growth ETF Performances

The Sunday Investor

S&P 500 Quarterly Revenue and Earnings Surprises

Chart: The Sunday Investor; Data: Yardeni Research

FBCG Top 20 Holdings

Fidelity

FBCG Sector Exposures

The Sunday Investor

FBCG vs. IWY Fundamental Analysis

The Sunday Investor

Top 5 Overweighted Stocks - FBCG vs. IWY

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FBCG Underweighted Stocks Performances

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This article was written by

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I perform independent fundamental analysis for over 850 U.S. Equity ETFs and aim to provide you with the most comprehensive ETF coverage on Seeking Alpha. My insights into how ETFs are constructed at the industry level are unique rather than surface-level reviews that’s standard on other investment platforms. My deep-dive articles always include a set of alternative funds, and I am active in the comments section and ready to answer your questions about the ETFs you own or are considering.

My qualifications include a Certificate in Advanced Investment Advice from the Canadian Securities Institute, the completion of all educational requirements for the Chartered Investment Manager (CIM) designation, and a Bachelor of Commerce degree with a major in Accounting. In addition, I passed the CFA Level 1 Exam and am on track to become licensed to advise on options and derivatives in 2023. In November 2021, I became a contributor for the Hoya Capital Income Builder Marketplace Service and manage the "Active Equity ETF Model Portfolio", which as a total return objective. Sign up for a free trial today! Hoya Capital Income Builder.

Disclosure: I/we have a beneficial long position in the shares of SPY, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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