The Active ETF Gap: What Sets the Top Active ETFs Apart?

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FDG

Active ETFs continue to launch, picking up 37% of total ETF flows YTD despite representing just 13% of assets as investors flock to their combination of adaptability and tax efficiency. As active ETFs proliferate, however, investors have more options to consider. In each segment, from small caps to corporate bonds, understanding the active ETF gap can help investors find the top active ETFs, like the American Century Focused Dynamic Growth ETF (FDG C+).Key Takeaways: FDG launched in 2020 and stands out for its durable, long term performance, returning 25.9% over the last three years per ETF Database data. Where some almost 70% of active ETFs launched in just the last three years, FDG’s experienced management and tenue can make it stand out. The fund can help portfolios become more adaptable to a tough economic outlook and rising uncertainty. FDG charges a 45 basis point (bps) fee for its active ETF approach. The strategy recently hit five years of operation this past March, investing in large and midcap U.S. firms with upside potential. That broad remit has helped the strategy deliver strong long term returns. The active ETF has returned 25.9% over the last three years according to ETF Database data. That has outperformed the fund’s ETF Database Large Cap Growth Equities category average performance in that time. The average came in at just 17.1% for that time. What, then, underlines FDG as one of those top active ETFs in the growing ecosystem? The experience gap between managers is a key factor not to be underestimated. Active management, of course, relies on the experience and expertise offered by seasoned managers. American Century Investments Head of ETF Product and Strategy Sandra Testani recently analyzed that gap between new active ETFs and experienced offerings like FDG. Testani pointed out that almost 70% of current active ETF offerings were launched in just the last three years. American Century Investments, she wrote, launched its first active ETFs in 2018. See more: American Century’s Greenblath Talks Fed, Yen Impact on Corporates “This experience informs how our teams navigate real‑world market cycles, adapt to changing conditions and develop ETF strategies that pursue specific outcomes—whether through return‑enhancing positioning, risk‑aware portfolio construction or disciplined decision‑making grounded in current market prices,” she wrote. FDG may epitomize the long term performance of seasoned managers in the tax efficient ETF wrapper. As investors look to renew their portfolios with the top active ETFs, FDG may appeal. For more news, information, and analysis, visit the Core Strategies Content Hub.

The Active ETF Gap: What Sets the Top Active ETFs Apart?

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