Fidelity MSCI Information Technology Index ETF is an indexed ETF with a TER of 0.084% that invests in around 291 information technology stocks. It maintains performance close to more concentrated ETFs like XLK and superior to equal-weight versions such as RSPT. The forward P/E of the info tech segment is 26x: not at the highs of the P/E distribution over the past 10 and 30 years.
The Fidelity MSCI Information Technology Index ETF (FTEC) was launched on October 21, 2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
Both the FTEC and XLK ETFs have strong 1-, 3-, 5-, and 10-year performance track records. Both should be considered as core long-term diversified technology holdings in you portfolio. The top-5 holdings in both ETFs are NVIDIA, Apple, Microsoft, Broadcom, and Palantir. These companies are highly successful, are driving performance, and position the funds well for the future. XLK's focused portfolio (70 holdings vs. FTEC's 292) and larger AUM ($91.8B vs. $16.7B) provide greater scale and a more focused approach.
The Fidelity MSCI Information Technology Index ETF offers diversified, low-cost exposure to U.S. technology stocks, with strong historical outperformance versus peers. FTEC's portfolio is heavily weighted toward semiconductors (31%), with large caps comprising 76% of holdings and a low 0.08% expense ratio. The ETF has delivered robust annualized returns: 21.97% over 10 years, 17.57% over 5 years, and 32.92% over 3 years.
Fidelity MSCI Information Technology Index ETF is rated a Buy for long-term, capital appreciation-focused investors seeking technology sector exposure. FTEC outperforms the S&P 500 and NASDAQ over 5- and 10-year periods, with an ultra-low 0.08% expense ratio and strong momentum ratings. Top holdings include industry leaders like Nvidia, Apple, Microsoft, Palantir, and Broadcom, positioning FTEC to benefit from ongoing AI-driven innovation.
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on October 21, 2013.
FTEC has outperformed the S&P 500 with a 10-year annual return of 21.1%, making it a great choice for a long-term core tech holding in your portfolio. The ETF is well-diversified, heavily weighted in software and semiconductors, but excludes Google, Amazon, and TSMC—ideal for those already holding these stocks. FTEC's portfolio features leading AI and tech innovators like NVIDIA, Broadcom, Oracle, and Palantir, capitalizing on generational AI growth trends.
FTEC suffers from high concentration, backward-looking market cap weighting, and misses key tech names like Amazon, Meta, and Alphabet. Lower AUM leads to liquidity issues, making FTEC less attractive compared to larger peers like VGT, despite its slightly lower fees. DIY tech portfolios or more diversified ETFs like QQQ offer better risk-reward and flexibility than FTEC's rigid, concentrated approach.
Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed exchange traded fund launched on 10/21/2013.
The US stock market is rebounding, driven by mega and large-cap tech stocks, bolstered by trade deals with China and potential rate cuts. Fidelity MSCI Information Technology Index ETF (FTEC) is a top investment choice due to its significant concentration in tech giants like Apple, Microsoft, and NVIDIA. iShares U.S. Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) are also strong options, offering exposure to key tech giants from the communication sector.
Fidelity's FTEC ETF features a diversified basket of well-known internet technology firms.
If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on 10/21/2013.