This ETF carries on the Magellan Fund's active growth-stock philosophy, selectively investing in high-quality growth companies at home and abroad. Rather than tracking a specific index, it pursues long-term capital growth through the management team's stock selection.

It suits growth-oriented long-term investors who want to seek excess returns through active stock selection instead of index tracking.

It is an ETF managed by Fidelity using an active management approach.

This is an active strategy in which the management team directly selects large growth companies at home and abroad in pursuit of long-term capital growth. Instead of disclosing all holdings every day, it publishes a daily tracking basket. This semi-transparent structure reduces exposure of the investment strategy while being designed so that the market price closely follows net asset value. Because it is managed on a non-diversified basis, the weights of its top holdings tend to be large.

• The Magellan Fund's investment philosophy in ETF form
• Semi-transparent tracking basket structure

Assets under management (AUM) stand at $230.8M, and the Expense Ratio is 0.57% per year.

Its management fee is somewhat higher than that of comparable passive growth ETFs, but it offers the distinguishing feature of active stock selection.

Because of its heavy weighting in growth stocks, it reacts sensitively to trends in the technology and consumer sectors, and it tends to show short-term volatility driven by interest rates and earnings seasons. Given the nature of active management, its performance can diverge from that of passive ETFs in the same category.

Inflows are being driven by awareness of the Fidelity brand and the Magellan heritage, and fund flows tend to be shaped by investor appetite for growth stocks as market conditions change.

Its strength is active growth-stock selection by a proven asset manager, while its weaknesses are higher fees than passive funds and non-diversified concentration.

The comparison ETFs shown together in the table include DFAE, CGDG, EQTY, SDIV, and FDD. These are equity ETFs with different strategies and management fees, such as emerging-market core, dividend growth, and high dividend, so their category characteristics differ. If you want the same large-cap growth exposure, you could also consider lower-fee passive alternatives such as VUG and SCHG, QQQ, which tracks the Nasdaq 100, and IWF, which follows the Russell 1000 Growth Index. FBCG, an actively managed growth ETF from the same Fidelity family, is a direct comparison because it shares a similar asset manager and philosophy.

These are the points to review before investing in FMAG. Because it is an active growth ETF, it is wise to check in advance its fee level relative to passive funds, the concentration resulting from non-diversified management, and the volatility of its active management performance.

Growth-stock concentration and non-diversified management are the main drivers of short-term volatility. Given the nature of active management, if market trends and the managers' judgment diverge, the fund may lag comparable passive ETFs.

It is an ETF worth considering for investors who want active growth-stock selection beyond index tracking. If cost and diversification are the priority, VUG and SCHG are options, and if you want an active growth strategy, FMAG is the choice.