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ETF Overview
The Fidelity Enhanced Large Cap Growth ETF (NYSEARCA:FELG) invests in a portfolio of U.S. large-cap growth stocks in the Russell 1000 index. The fund is actively managed and has a relatively higher expense
FELG: Dynamic Strategy Falls Short Of Long-Term Outperformance
Summary
- The Fidelity Enhanced Large Cap Growth ETF (FELG) has a higher expense ratio and turnover rate compared to other growth funds, potentially dragging long-term performance.
- FELG's dynamic portfolio adjustment strategy has not consistently reduced downside risk or outperformed other growth funds like VUG and IWF in the past.
- The fund's heavy exposure to the technology sector aligns with growth trends but is comparable to other growth funds, offering no significant advantage.
- Despite good returns, FELG's dynamic strategy and higher costs make it less attractive; investors might consider alternative growth funds with lower expenses and better performance.
I am a value focused investor. Stocks rise and fall for many different reasons that we often cannot predict. Eventually, it is those companies with a wide moat and the ability to generate cash flow that prevail. Therefore, my investment focus is to find value stocks that are able to generate cash flow, with sustainable dividends and provide growth over time. I focus my attention on analyzing large-capped dividend growth stocks, REITs and ETFs. I aim at providing a quarterly update and insights on stocks I follow. Please feel free to browse the articles that I wrote and provide any comments.
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