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FTEC - ETF AI Analysis
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Fidelity MSCI Information Technology Index ETF (FTEC)
Rating:72Outperform
Price Target:―
Positive Factors
Strong Top Holdings
Several key holdings, including Nvidia, Broadcom, and Oracle, have delivered strong year-to-date performance, boosting the ETF's returns.
Low Expense Ratio
The ETF charges a very low expense ratio compared to industry averages, making it cost-effective for investors.
High Assets Under Management
The fund has significant assets under management, indicating strong investor confidence and liquidity.
Negative Factors
Sector Concentration Risk
The ETF is heavily concentrated in the technology sector, which increases vulnerability to downturns in this industry.
Geographic Overexposure
Nearly all of the fund's holdings are based in the U.S., limiting diversification across global markets.
Underperformance of Key Holding
Apple, one of the largest positions in the fund, has shown weaker year-to-date performance compared to other top holdings.
FTEC vs. SPDR S&P 500 ETF (SPY)
AUM17.19B
RegionNorth America
Expense Ratio0.08%
Beta1.52
IssuerFidelity
Inception DateOct 21, 2013
Dividend Yield0.39%
Asset ClassEquity
Index TrackedMSCI USA IMI Information Technology 25/50 Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume202,351
30 Day Avg. Volume286,867
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
280.49Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering287
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FTEC Summary
The Fidelity MSCI Information Technology Index ETF (FTEC) is an investment fund that focuses on the technology sector, tracking the MSCI USA IMI Information Technology Index. It includes major tech companies like Apple and Nvidia, along with others in software, hardware, and semiconductors. This ETF is a good choice for investors who believe in the growth potential of technology and want a diversified way to invest in this fast-evolving industry. However, since it is heavily focused on tech stocks, its performance can be significantly affected by changes in the technology market.
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 heavily concentrated in U.S. technology giants, with Nvidia and Apple leading the charge. Nvidia’s long-term growth potential in AI is a highlight, but recent mixed momentum has tempered its performance. Apple, on the other hand, is steadily rising, buoyed by strong revenue growth and expansion in services. Microsoft has been lagging lately, weighed down by overbought conditions despite its cloud and AI focus. Meanwhile, Broadcom’s robust gains in AI semiconductors are a bright spot, while Oracle’s struggles in cloud growth and valuation concerns are holding it back. Overall, the fund’s tech-heavy positioning reflects a bet on innovation but comes with sector-specific volatility.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 16.86% | $2.90B | $4.49T | 31.92% | 76 Outperform | |
| Apple | 14.78% | $2.54B | $4.10T | 13.10% | 79 Outperform | |
| Microsoft | 12.07% | $2.07B | $3.66T | 6.58% | 79 Outperform | |
| Broadcom | 5.09% | $874.86M | $1.92T | 125.42% | 76 Outperform | |
| Palantir Technologies | 1.94% | $333.74M | $433.40B | 159.15% | 74 Outperform | |
| Oracle | 1.78% | $306.24M | $631.54B | 24.88% | 68 Neutral | |
| Advanced Micro Devices | 1.72% | $295.98M | $360.81B | 70.13% | 74 Outperform | |
| Cisco Systems | 1.54% | $263.96M | $314.15B | 36.97% | 77 Outperform | |
| International Business Machines | 1.41% | $242.27M | $290.22B | 35.87% | 79 Outperform | |
| Micron | 1.39% | $238.94M | $284.06B | 158.40% | 77 Outperform |
FTEC Technical Analysis
Positive
―
Price Trends
226.85
Positive
218.34
Positive
196.91
Positive
Market Momentum
1.29
Negative
61.89
Neutral
94.62
Negative
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 224.24, equal to the 50-day MA of 226.85, and equal to the 200-day MA of 196.91, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 61.89 is Neutral, neither overbought nor oversold. The STOCH value of 94.62 is Negative, 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
232.25
43.52
23.06%
VGT
Vanguard Information Technology ETF
―
―
―
XLK
Technology Select Sector SPDR Fund
―
―
―
XLF
Financial Select Sector SPDR Fund
―
―
―
IYW
iShares U.S. Technology ETF
―
―
―
SOXX
iShares Semiconductor 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.
Disclaimer
This 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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