Fidelity Blue Chip Growth ETF’s exposure to companies with paltry current earnings, relatively high price multiples, and rapid growth expectations has inflicted heavy losses during the global equity market selloff that began near 2022’s start. For the year to date through May 7, 2022, the fund slid 27.9%, a bottom-quartile result within the large-growth Morningstar Category that was roughly 6 percentage points worse than the Russell 1000 Growth Index’s decline. That underperformance, while disappointing, is mostly in line with what investors should expect from the strategy, given its style, typical exposure to companies with high volatility, and an unfavorable macroeconomic backdrop.
Fidelity® Blue Chip Growth ETF FBCG
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
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Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable FBCG’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the FBCG management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
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The Parent Pillar is our rating of FBCG’s parent organization’s priorities and whether they’re in line with investors’ interests.
Fidelity Blue Chip Growth ETF’s High-Growth Exposure Has Hurt in 2022
