FDG ETF

ETFs have become popular in recent years, but as the space has grown, it's been harder for individual funds to break out. One ETF in particular, however, may be poised to explode out of the blocks.

Are U.S. investors set for a soft landing? It increasingly seems that way, especially compared to the narrative markets saw entering this year.

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.

American Century Focused Dynamic Growth ETF (FDG) focuses on growth stocks with 40 holdings and a reasonable expense ratio of 0.45%. FDG's performance is highly dependent on the Mag 7 stocks, making it volatile and risky; a small position may work in the investor's favor. Investors are advised to tread carefully and consider hedging with broader ETFs like iShares Russell 2000 Value ETF or iShares Russell 1000 ETF.

Active ETFs have had a banner year and a half, gaining credibility and flows as investors come to understand the wrapper. Within that space, investors can find all kinds of strategies, from factor strategies to smart beta “passive plus” type opportunities.

What better way to get a sense of an ETF than to understand its stocks? One key challenge for investors right now — avoiding overconcentration risk from the big, big tech names — merits looking for strategies outside that space.

Think you have enough allocated to large cap growth? You might be missing out.

Investors have been shifting their focus from mutual funds to ETFs in recent years. ETF investing, whether active or passive, provides a range of advantages.

Active ETFs took off in 2023 and, in many ways, had their moment to shine. Given that big step forward, investors may be on the lookout for standouts within the world of active strategies.