Average Daily Volume
459.8K
Fund Overview
The Fidelity MSCI Information Technology Index ETF (FTEC) seeks to provide investment returns that correspond, before fees and expenses, to the performance of the MSCI USA IMI Information Technology Index. This ETF offers exposure to U.S. technology companies, including well-known giants like Apple, Microsoft, and NVIDIA, as well as smaller, innovative firms. FTEC is designed for investors looking to gain broad exposure to the technology sector, which has been a key driver of market growth over the past decade. The fund is passively managed, aiming to replicate the index's performance with low turnover and competitive expense ratios.
- Asset Class
-
Equity
- Industry
-
Broad Technology
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.53 %
- Currency Hedged
-
No
- Portfolio Turnover
-
10 %
- Dividend Date
-
Why Invest in the FTEC ETF?
Potential Benefits
- Provides diversified exposure to leading U.S. technology companies, reducing single-stock risk.
- Low expense ratio compared to actively managed tech funds, enhancing long-term returns.
- Passively tracks a well-established index (MSCI USA IMI Information Technology Index), ensuring transparency.
- Strong historical performance, benefiting from the tech sector's growth and innovation.
- Liquidity is high, with tight bid-ask spreads, making it easy to trade.
- Suitable for both long-term investors and those seeking tactical sector exposure.
Potential Risks
- Concentration risk: The tech sector can be volatile and subject to rapid shifts in sentiment.
- Regulatory risks: Tech companies face increasing scrutiny from governments worldwide.
- Valuation concerns: High-growth tech stocks may be overvalued during market exuberance.
- Sector cyclicality: Performance may lag during periods when value or defensive sectors outperform.
- Interest rate sensitivity: Tech stocks often underperform in rising rate environments.
- Index methodology risk: The fund may overweight certain sub-sectors or companies based on the index rules.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.8%
|
-2.9%
|
-3.8%
|
+18.4%
|
+17.4%
|
-1.2%
|
-5.4%
|
+6.5%
|
+4.5%
|
+3.3%
|
-
|
-
|
| 2025 |
-0.8%
|
-3.0%
|
-9.2%
|
+1.3%
|
+10.4%
|
+9.4%
|
+4.3%
|
+0.8%
|
+7.2%
|
+6.4%
|
-5.2%
|
+0.3%
|
| 2024 |
+2.2%
|
+4.8%
|
+1.5%
|
-5.7%
|
+7.9%
|
+8.2%
|
-1.5%
|
+0.9%
|
+2.5%
|
-0.9%
|
+7.1%
|
-0.1%
|
| 2023 |
+9.7%
|
+0.4%
|
+9.7%
|
-0.3%
|
+8.6%
|
+6.1%
|
+2.9%
|
-2.2%
|
-6.3%
|
-1.2%
|
+13.2%
|
+4.8%
|
| 2022 |
-7.9%
|
-4.3%
|
+3.2%
|
-11.8%
|
-1.6%
|
-9.5%
|
+13.4%
|
-5.6%
|
-11.8%
|
+7.4%
|
+5.3%
|
-7.9%
|
| 2021 |
-0.7%
|
+1.5%
|
+0.7%
|
+5.2%
|
-1.2%
|
+7.3%
|
+3.4%
|
+3.5%
|
-5.7%
|
+8.1%
|
+3.1%
|
+2.5%
|
| 2020 |
+3.7%
|
-7.2%
|
-9.7%
|
+14.1%
|
+7.7%
|
+7.0%
|
+6.1%
|
+11.2%
|
-4.9%
|
-4.3%
|
+12.4%
|
+5.8%
|
| 2019 |
+8.1%
|
+7.3%
|
+4.0%
|
+6.4%
|
-8.9%
|
+8.6%
|
+3.6%
|
-2.3%
|
+1.4%
|
+3.7%
|
+5.7%
|
+4.0%
|
| 2018 |
+7.5%
|
+0.2%
|
-3.4%
|
0.0%
|
+7.1%
|
-0.2%
|
+2.0%
|
+7.4%
|
-0.3%
|
-8.7%
|
-1.7%
|
-8.5%
|
| 2017 |
+4.2%
|
+5.0%
|
+2.2%
|
+2.3%
|
+4.6%
|
-2.6%
|
+4.1%
|
+3.1%
|
+0.9%
|
+7.4%
|
+0.9%
|
+0.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
16.3 % |
|
MSFT
|
MICROSOFT CORP |
15.1 % |
|
NVDA
|
NVIDIA CORP |
14.7 % |
|
AVGO
|
BROADCOM INC |
4.2 % |
|
CRM
|
SALESFORCE INC |
1.9 % |
|
CSCO
|
CISCO SYSTEMS INC |
1.7 % |
|
IBM
|
INTERNATIONAL BUSINESS MACHINES CORP |
1.7 % |
|
ORCL
|
ORACLE CORP |
1.7 % |
|
ACN
|
ACCENTURE PLC CLASS A |
1.4 % |
|
PLTR
|
n/a |
1.3 % |
Top 10 holdings shown, out of 294 total holdings.
Related ETFs: FTEC vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
FTEC tracks the MSCI USA IMI Information Technology Index, which includes large, mid, and small-cap U.S. technology stocks. The index is market-cap weighted, meaning larger companies like Apple and Microsoft have a more significant impact on performance. The fund holds a broad range of tech stocks, from established giants to emerging innovators, and is rebalanced quarterly to align with the index. FTEC uses a passive management approach, aiming to minimize tracking error and costs while providing accurate sector exposure.
Frequently Asked Questions
What index does FTEC track?
FTEC tracks the MSCI USA IMI Information Technology Index, which includes U.S. large, mid, and small-cap technology stocks.
How does FTEC differ from QQQ?
FTEC focuses exclusively on the technology sector, while QQQ (Invesco QQQ Trust) tracks the Nasdaq-100 Index, which includes tech and non-tech companies like consumer discretionary and healthcare firms.
What is FTEC's expense ratio?
FTEC has a low expense ratio of 0.084%, making it one of the more cost-effective tech sector ETFs.
Is FTEC suitable for long-term investing?
Yes, FTEC can be a core holding for long-term investors seeking growth through the technology sector, though diversification across other sectors is recommended to mitigate risk.
Does FTEC pay dividends?
Yes, FTEC pays dividends, though yields are typically lower than broader market ETFs due to the tech sector's growth-oriented nature.
Industry Overview
The Fidelity MSCI Information Technology Index ETF (FTEC) provides exposure to the dynamic and fast-evolving technology sector. This sector includes companies involved in software, hardware, semiconductors, and IT services, which are integral to modern economies. Investing in FTEC allows investors to participate in the growth of innovative firms driving digital transformation, cloud computing, artificial intelligence, and other technological advancements. The tech sector has historically delivered strong returns but is also prone to higher volatility due to rapid innovation cycles and competitive pressures.
Alternative Comparison
Compared to peers like XLK (Technology Select Sector SPDR Fund) and VGT (Vanguard Information Technology ETF), FTEC offers a slightly broader exposure by including small and mid-cap tech stocks, whereas XLK is limited to large caps. VGT has a similar scope but may differ slightly in weightings due to index methodology variations. FTEC's expense ratio is competitive, making it an attractive option for cost-conscious investors. Unlike thematic tech ETFs like ARKK (ARK Innovation ETF), FTEC provides diversified, index-based exposure without active stock-picking risks.
Issuer Overview
Fidelity Investments is one of the largest and most respected asset managers globally, known for its low-cost index funds and ETFs. The company has a strong track record in providing diversified investment solutions across asset classes. Fidelity's ETFs, including FTEC, are designed to offer efficient, transparent, and cost-effective access to various market segments.
Conclusion
FTEC is a solid choice for investors seeking broad, low-cost exposure to the U.S. technology sector. Its passive management, diversified holdings, and competitive fees make it suitable for both long-term portfolios and tactical allocations. However, investors should be mindful of the sector's inherent volatility and ensure it aligns with their risk tolerance and investment goals.
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