FTEC - ETF AI Analysis
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Fidelity MSCI Information Technology Index ETF (FTEC)
Rating:74Outperform
Price Target:―
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, showing solid momentum in its technology-focused strategy.
Leading Tech Companies in Top Holdings
Many of the largest positions, including major chip and hardware makers, have shown strong or very strong performance, helping drive the fund’s returns.
Low Expense Ratio
The fund’s relatively low annual fee means more of the investment gains stay in investors’ pockets over time.
Negative Factors
High Concentration in a Few Stocks
A large portion of the portfolio is tied up in just a handful of companies, which increases the impact if any of those stocks struggle.
Single-Sector Focus
With most assets in the technology sector, the ETF is highly sensitive to downturns in tech and offers limited protection from weakness in that industry.
Heavy U.S. Exposure
The fund is almost entirely invested in U.S. companies, providing little geographic diversification if the U.S. market faces challenges.
FTEC vs. SPDR S&P 500 ETF (SPY)
AUM19.93B
RegionNorth America
Expense Ratio0.08%
Beta1.48
IssuerFidelity
Inception DateOct 21, 2013
Dividend Yield0.35%
Asset ClassEquity
Index TrackedMSCI USA IMI Information Technology 25/50 Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume234,634
30 Day Avg. Volume329,466
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
358.10Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering279
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FTEC Summary
FTEC is an exchange-traded fund that tracks the MSCI USA IMI Information Technology 25/50 Index, giving you broad exposure to U.S. technology companies. It holds many well-known names, including Apple and Nvidia, along with other firms in software, hardware, chips, and IT services. Someone might invest in FTEC if they believe technology will keep driving long-term growth and want an easy way to own a basket of leading tech stocks instead of picking individual companies. A key risk is that it is heavily concentrated in the tech sector, so its price can rise and fall sharply with technology stocks.
How much will it cost me?The Fidelity MSCI Information Technology Index ETF (FTEC) has an expense ratio of 0.084%, meaning you’ll pay $0.84 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, which typically costs less than actively managed funds.
What would affect this ETF?FTEC's strong focus on the U.S. technology sector positions it to benefit from ongoing innovation in areas like artificial intelligence, cloud computing, and semiconductor advancements, especially given its top holdings in companies like Nvidia, Apple, and Microsoft. However, the ETF could face challenges from rising interest rates, which often pressure growth-oriented sectors like technology, and regulatory scrutiny targeting big tech companies. Broader economic conditions, such as a potential slowdown in consumer spending or geopolitical tensions, could also impact its performance.
FTEC Top 10 Holdings
FTEC is essentially a bet on U.S. Big Tech and chipmakers, with Nvidia and Apple steering the ship. Apple has been rising steadily, giving the fund a strong tailwind, while Nvidia’s performance has been more mixed lately, adding some volatility but still anchoring the AI story. Microsoft looks a bit tired in the short term, losing steam after earlier strength. Down the roster, Micron and AMD have been climbing on AI and semiconductor momentum, though recent pullbacks in names like Intel and Lam Research show that the chip trade can cut both ways.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 17.74% | $3.70B | $5.25T | 20.64% | 76 Outperform | |
| Apple | 16.05% | $3.34B | $4.54T | 35.82% | 79 Outperform | |
| Microsoft | 10.96% | $2.28B | $3.57T | -4.73% | 79 Outperform | |
| Micron | 4.16% | $867.92M | $1.10T | 721.53% | 79 Outperform | |
| Broadcom | 4.02% | $837.71M | $1.73T | 25.32% | 76 Outperform | |
| Advanced Micro Devices | 2.98% | $622.02M | $766.37B | 182.10% | 73 Outperform | |
| Cisco Systems | 1.75% | $364.05M | $431.94B | 64.94% | 77 Outperform | |
| Intel | 1.63% | $339.31M | $484.10B | 263.18% | 64 Neutral | |
| Applied Materials | 1.58% | $329.84M | $393.97B | 202.98% | 77 Outperform | |
| Lam Research | 1.55% | $322.16M | $388.57B | 213.75% | 77 Outperform |
FTEC Technical Analysis
Positive
―
Price Trends
279.22
Positive
267.20
Positive
244.40
Positive
Market Momentum
2.70
Positive
50.61
Neutral
10.26
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTEC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 281.57, equal to the 50-day MA of 279.22, and equal to the 200-day MA of 244.40, indicating a bullish trend. The MACD of 2.70 indicates Positive momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTEC.
FTEC Peer Comparison
Comparison Results
Performance Comparison
FTEC
Fidelity MSCI Information Technology Index ETF
282.62
77.50
37.78%
VGT
Vanguard Information Technology ETF
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XLK
Technology Select Sector SPDR Fund
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―
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XLF
Financial Select Sector SPDR Fund
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SOXX
iShares Semiconductor ETF
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IYW
iShares U.S. Technology ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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