What this ETF is trying to do

The AMERICAN CENTURY FOCUSED DYNAMIC GROWTH ETF (ticker: FDG) is an exchange-traded fund designed to focus on growth. Based on its top holdings, the fund invests in large companies within the technology and growth sectors. This ETF is not a leveraged or inverse fund, meaning it does not use borrowed money to multiply returns or bet against the market.

What the numbers show

The data shows that FDG has experienced significant share-price growth over several timeframes. Because this fund does not pay distributions, the price return and the total return are the same.

• Year-to-Date (YTD) Price Return: Approximately 8.63%

• One-Year Price Return: Approximately 13.21%

• Three-Year Price Return: Approximately 118.50%

• Five-Year Total Return: Approximately 68.55%

To put the one-year growth in perspective, the current price is $137.79. The estimated price from roughly one year ago was approximately $121.71.

Income and distribution explanation

Some investors look for ETFs that pay regular cash, often called "distributions." For FDG, no distributions were detected over the last 12 months. The distribution yield is 0%. This means the fund is focused on share-price growth rather than providing regular cash income to investors.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price can sometimes be a sign of erosion, it is not proof of it.

In the case of FDG, the erosion-risk score is 100, which is labeled as "No price erosion detected." The erosion severity is described as "good," and there is no severe erosion-risk flag present. This indicates that the fund's share price has not shown a pattern of deteriorating value according to the supplied measurements.

Top Holdings

The following is a partial list of the fund's largest holdings. Please note that these are only the top holdings and not all 46 companies in the fund. Holdings can change over time.

• NVIDIA CORP: 17.27%

• ALPHABET INC CLASS C: 16.00%

• AMAZON.COM INC: 7.05%

• TESLA INC: 6.53%

• MICROSOFT CORP: 4.10%

• CADENCE DESIGN SYSTEMS INC: 3.75%

• ASCENDIS PHARMA AS: 3.17%

• META PLATFORMS INC CLASS A: 3.17%

• ROCKET LAB CORP: 2.89%

• NETFLIX INC: 2.29%

Pros and Cons

Pros:

• The fund has shown strong historical price returns over the one-year and three-year periods.

• The erosion-risk score suggests no detected price erosion.

Cons:

• The fund does not provide cash distributions or income.

• The portfolio is concentrated in a small number of large companies.

Beginner takeaway

FDG is a growth-focused ETF that has seen its share price increase significantly over the last three years. It is important to note that this fund does not pay out regular income, so it may not be suitable for investors specifically looking for cash distributions.