FELG vs FRTY

FELGAFidelity Enhanced Large Cap Growth ETF

FRTYDAlger Mid Cap 40 ETF

In short

FELG Active stock-picking on an index-fund budget. FELG charges 0.18% to tilt around the Russell 1000 Growth Index rather than copy it, running a strategy whose track record dates to 2007.

FRTY Alger's stock-picking house style in ETF form: roughly 40 mid-cap growth names, chosen for what the manager calls Positive Dynamic Change. In a peer group stacked with cheap large-cap index-huggers, it's the concentrated mid-cap outlier.

Stated mandate

FELG The fund seeks capital appreciation and normally invests at least 80% of its assets in common stocks included in the Russell 1000® Growth Index.

FRTY The fund seeks long-term capital appreciation by investing in a focused portfolio of mid-cap companies selected through fundamental research for promising growth potential. Its manager emphasizes companies experiencing Positive Dynamic Change.

Why people hold it

• FELG 0.18% a year, roughly a third of the typical fee among active US growth-conviction funds.
• Not a moonshot: at least 80% of assets sit in Russell 1000 Growth constituents across about 110 stocks, so the manager's bets are tilts around a familiar benchmark.fidelity.com
• One of the strongest implementations in its peer group, and cheaper than most of the other top-graded names there (GUSE and MAGS at 0.30%, LRGC at 0.39%).
• A multi-billion-dollar fund from Fidelity with steady on-screen liquidity, and it pays quarterly.

• FRTY About 40 holdings, so every pick carries real weight. This is a conviction portfolio, not a closet index fund shadowing a benchmark.
• Mid-cap growth is the actual mandate, which separates it from a peer group led by large-cap enhanced-index products like JUSA and FELG.
• Stocks are picked by fundamental research under Alger's Positive Dynamic Change framework, aimed at US mid caps the team sees as hitting a growth inflection.
• Launched in 2021, it puts a long-running active growth process into a daily-traded ETF wrapper instead of a mutual fund share class.

Worth knowing

• FELG Concentrated by design: roughly 110 large-cap growth names, so the megacap tech leaders at the top of the Russell 1000 Growth Index drive the ride both ways.
• Active means the portfolio deviates from the index on purpose, so results can land on either side of it.
• Not the cheapest seat in the cohort: JUSA runs 0.12%, though its mandate is broad large-cap rather than the growth slice.

• FRTY The 0.60% expense ratio sits above the 0.54% typical for its cohort, and far above index-tracking rivals such as JUSA at 0.12%.
• It trades thinly. Spreads can widen and fills get lumpy, so execution matters more here than in a heavily traded fund.
• Concentration cuts both ways: 40 mid-cap growth names can swing harder than a broad index. Distributions are infrequent, so income isn't the point.

Full FELG profile⁠

Full FRTY profile⁠