"Fidelity Fundamental Large Cap Growth ETF (FFLG) returned 27% over the trailing twelve months, while Invesco QQQ Trust (QQQ) returned 25% and Vanguard Growth ETF (VUG) returned 21% over the same stretch."
"Unlike QQQ, which mechanically tracks the 100 largest Nasdaq-listed companies, FFLG is actively managed and selects holdings based on fundamental factors."
"The return engine is straightforward: own the businesses driving the most earnings growth in the economy, hold them, and let compounding do the work."
"The most plausible explanation for the five-year lag is timing. FFLG launched in early 2021, right before a brutal stretch for growth stocks."
Fidelity Fundamental Large Cap Growth ETF (FFLG) returned 27% over the past year, outperforming Invesco QQQ Trust (QQQ) at 25% and Vanguard Growth ETF (VUG) at 21%. FFLG is actively managed, focusing on fundamental factors rather than simply tracking an index. The fund emphasizes sectors with high earnings growth, particularly information technology, which constitutes 44% of its holdings. Despite a strong one-year performance, FFLG's five-year returns lag behind QQQ and VUG due to its launch timing just before a downturn in growth stocks.
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