FLCG vs LRGC

FLCGBFederated Hermes MDT Large Cap Growth ETF

LRGCAAB US Large Cap Strategic Equities ETF

In short

FLCG Federated Hermes dropped its decades-old MDT quant engine into an ETF in 2024: a bottom-up model picks roughly 100 large-cap growth names from the Russell 1000 Growth universe, aiming for an edge without straying far from the benchmark.

LRGC AB's stock pickers in an ETF wrapper: roughly 70 large-cap US names picked with fundamental research plus quant screens, measured against the S&P 500. Active conviction, priced under the typical active peer.

Stated mandate

FLCG The Fund seeks long-term capital appreciation.

LRGC The Fund seeks long-term growth of capital. It is actively managed and normally invests at least 80% of net assets in equities of large-capitalization U.S. companies.

Why people hold it

• FLCG Cheap for an active mandate: 0.39% net of a waiver through May 1, 2027 (0.51% gross), below the median fee in its large-growth peer group.federatedhermes.com
• The ETF is young, the engine is not. MDT has run systematic US equity strategies since 1991, and this large-cap growth mandate has an institutional track record dating to 2004.hermes-investment.comfederatedhermes.com
• Risk control is written into the mandate: the strategy targets excess return with moderate tracking error versus the Russell 1000 Growth Index, so style drift stays contained.federatedhermes.com
• Around 100 holdings and a stated aim of long-term capital appreciation, which makes this a broad slice of US growth rather than a handful of concentrated bets.

• LRGC Roughly 70 holdings against a 500-stock yardstick, with quality and value screens doing the filtering. Each name actually carries weight.
• 0.39% a year sits below the median fee in its active large-cap group, so the manager isn't digging out of a deep cost hole.
• One of the stronger implementations among the actively managed US large-cap funds we track, with a plain mandate: at least 80% of net assets in large-cap US equities.
• Launched in 2023 on one of AB's core US equity strategies, with Jane Street signed on as lead market maker from day one.prnewswire.com

Worth knowing

• FLCG Systematic large-growth exposure comes cheaper elsewhere: JUSA and FELG each charge 0.18%, with no waiver propping up the number.
• The ETF only started trading in 2024, so the risk picture rests on a short window of its own data rather than a full market cycle.
• Volume is moderate rather than heavy, so spreads can widen in fast markets, and distributions land once or twice a year, not monthly.

• LRGC At 0.39%, it costs more than cheaper enhanced-index rivals in the same group, such as JUSA at 0.12% and GUSE at 0.30%.
• Outcomes ride on the team's judgment, not an index rulebook, and about 70 positions concentrate those calls.
• It trades lightly next to the big index names, so spreads can run wider, especially in fast markets.

Full FLCG profile⁠

Full LRGC profile⁠