Fidelity MSCI Information Technology Index ETF

FTEC

Market cap $16.9B

FTEC and VGT deliver near-identical exposure, sector weights, and top holdings within U.S. technology stocks VGT manages a far larger asset base and trades with higher liquidity, but charges a nearly identical expense ratio to FTEC Both ETFs show similar recent returns and risk profiles, with negligible differences in yield and drawdown

The iShares Semiconductor ETF (SOXX) and the Fidelity MSCI Information Technology Index ETF (FTEC) differ in breadth, cost, and risk. SOXX focuses on semiconductor stocks with greater potential gains but higher volatility.

The tech sector is among the best-performing corners of the market so far in 2025, with sector-wide returns of nearly 28% year-to-date (YTD) compared to over 17% for the overall S&P 500. In fact, the tech sector's performance—and the outsized returns of a handful of big names in particular—has been enough to prompt speculation among investors about an AI-related bubble that could be helping prop up other large chunks of the market that would otherwise be struggling.

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.

OpenAI's partnership spree with AMD, Oracle & NVIDIA fuels AI boom -- ETFs like IYW, FTEC, FDN, AIQ & XT stand to gain.

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.

The Fidelity MSCI Information Technology Index ETF is heavily concentrated in top AI-driven tech stocks, raising concerns about overvaluation and risk of correction. Despite strong recent earnings from NVDA, MSFT, and AAPL, FTEC appears overbought, with technical indicators suggesting a potential 10-20% drop after recent peaks. Long-term prospects for AI remain, but current market volatility and inflated expectations make it prudent to wait for a correction before investing in FTEC or similar tech ETFs.

Midyear can be an ideal opportunity for investors to re-evaluate their portfolios and consider rebalancing to align with their ideal asset allocation. As the midpoint of 2025 passes, the U.S. stock market has delivered a mixed bag of performance across sectors, driven largely by continued enthusiasm for artificial intelligence (AI) and fluctuating economic conditions.

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.

For many investors, building a diversified portfolio is one of the first steps in investing. Fidelity Investments' extensive range of ETFs offers a powerful toolkit to achieve this.