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FTEC - ETF AI Analysis

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FTEC

Fidelity MSCI Information Technology Index ETF (FTEC)

Rating:74Outperform
Price Target:
FTEC, the Fidelity MSCI Information Technology Index ETF, earns a solid overall rating largely because its biggest positions in leaders like Apple, Microsoft, and Nvidia combine strong financial performance with long-term growth potential in areas such as AI, cloud, and services. Additional support comes from other well-positioned chip and hardware names like Micron and Broadcom, though holdings such as Intel, which faces profitability and cash flow challenges, slightly weigh on the fund. The main risk is that the ETF is heavily concentrated in the technology sector, so it is more exposed to tech-specific downturns and valuation swings than a more diversified fund.
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)

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
Nvidia17.60%$3.50B$5.01T11.18%
76
Outperform
Apple17.45%$3.47B$4.89T57.40%
79
Outperform
Microsoft8.97%$1.78B$2.84T-24.08%
79
Outperform
Micron4.27%$848.78M$1.04T709.17%
79
Outperform
Broadcom4.11%$817.27M$1.82T30.21%
76
Outperform
Advanced Micro Devices3.48%$692.70M$851.09B185.01%
73
Outperform
Cisco Systems1.88%$374.25M$449.99B68.68%
77
Outperform
Applied Materials1.79%$354.91M$425.76B171.66%
77
Outperform
Intel1.69%$335.97M$464.00B343.28%
64
Neutral
Lam Research1.60%$318.98M$381.69B195.69%
77
Outperform

FTEC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
278.29
Negative
100DMA
254.07
Positive
200DMA
239.27
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTEC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 276.00, equal to the 50-day MA of 278.29, and equal to the 200-day MA of 239.27, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTEC.

FTEC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$19.88B0.08%
74
Outperform
$140.24B0.09%
74
Outperform
$116.78B0.08%
75
Outperform
$55.49B0.08%
72
Outperform
$43.56B0.34%
74
Outperform
$23.37B0.38%
76
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTEC
Fidelity MSCI Information Technology Index ETF
268.44
63.20
30.79%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
SOXX
iShares Semiconductor ETF
IYW
iShares U.S. Technology ETF
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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