Fidelity Growth Opportunities ETF
The Fidelity Growth Opportunities ETF (BATS:FGRO) is an actively managed fund based on the established mutual fund of the same name, dating back to 1987. Transitioned into an ETF in 2021, it carries a proven track record of success.
Managed by Kyle Weaver and Michael Kim, who also oversee the mutual fund, FGRO focuses on stocks with above-average growth potential. Fundamental analysis drives stock selection, considering factors like financial health, industry position, and prevailing market conditions.
As of August 31, FGRO holds approximately 118 stocks, with the top three holdings being Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG). Priced at just over $16 per share, FGRO has posted a year-to-date return of approximately 27.3% as of October 24, with a one-year return of 24.5%.
Examining its long-term performance, the Fidelity Growth Opportunities mutual fund boasts an annualized return of 12.7% over the past five years as of September 30. Over the last 10 years and since its inception in 1987, the fund has delivered annualized returns of 14.6% and 11.6%, respectively, demonstrating consistent growth potential. The fund maintains a competitive expense ratio of 0.59%.
ARK Fintech Innovation ETF
The ARK Fintech Innovation ETF (NYMARKET:ARKF) is managed by ARK Invest, led by the renowned investor Cathie Wood. Launched in 2019, it is an actively managed ETF, akin to the flagship ARK Innovation Fund, managed by Wood herself.
ARKF focuses on innovative companies within the fintech space, specializing in technologically driven products or services that can disrupt their respective industries. The ETF offers multi-cap exposure to companies engaged in mobile payments, digital wallets, peer-to-peer lending, blockchain technology, and risk transformation.
With a portfolio typically comprising 35 to 55 stocks, the three largest holdings as of September 30 include Coinbase Global (NASDAQ:COIN), Shopify (NYSE:SHOP), and DraftKings (NASDAQ:DKNG). Priced around $18.83 per share as of October 24, ARKF has delivered a year-to-date return of 29.7% and a one-year return of 19.1%. Its three-year annualized return, including the 2022 bear market, stands at -24.2%, accompanied by an expense ratio of 0.75%.
Choosing Between FGRO and ARKF
Between these two ETFs, Fidelity Growth Opportunities ETF offers diversification across sectors, making it an appealing choice for investors seeking broad exposure. With a lower expense ratio and a strong track record, it represents a compelling option.
On the other hand, ARK Fintech Innovation ETF focuses on a specific sector, offering a higher risk-reward profile. While concentrated, it may suit investors looking for aggressive growth opportunities within the fintech space, guided by Cathie Wood‘s expertise.
Investors are advised to exercise due diligence and consult with financial advisors before making investment decisions, as all investments carry inherent risks.
