FTEC - ETF AI Analysis
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Fidelity MSCI Information Technology Index ETF (FTEC)
FTEC is an information technology ETF whose rating reflects a strong foundation in leading tech companies like Apple, Microsoft, and Nvidia, which contribute solid financial performance, growth in AI and cloud, and generally positive outlooks. The fund is somewhat held back by weaker names like Intel, where profitability and cash flow challenges create drag, and by the high valuations and mixed technical signals across several holdings, which add risk. A key risk factor is the ETF’s heavy concentration in the technology sector, making it more sensitive to downturns or valuation resets in tech stocks.
FTEC vs. SPDR S&P 500 ETF (SPY)
- AUM
- 21.65B
- Region
- North America
- Expense Ratio
- 0.08%
- Beta
- 1.49
- Issuer
- Fidelity
- Inception Date
- Oct 21, 2013
- Dividend Yield
- 0.39%
- Asset Class
- Equity
- Index Tracked
- MSCI USA IMI Information Technology 25/50 Index
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, Apple, and Microsoft steering the ship. Nvidia and AMD have been rising on the back of AI enthusiasm, giving the fund a strong tailwind, while Micron’s surge adds extra fuel from the memory and HBM side of the semiconductor story. Apple and Microsoft remain steady anchors, helping smooth out volatility. Broadcom and Cisco, by contrast, have been more mixed lately, occasionally dragging on returns. Overall, this is a U.S.-centric, tech-heavy ETF where a handful of giants do most of the heavy lifting.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 NVDA | Nvidia | 17.45% | $3.67B | $5.16T | 17.78% | 76Outperform |
 AAPL | Apple | 17.38% | $3.66B | $5.01T | 38.80% | 79Outperform |
 MSFT | Microsoft | 12.19% | $2.57B | $3.93T | 3.41% | 79Outperform |
 AVGO | Broadcom | 4.07% | $857.97M | $1.57T | -7.17% | 76Outperform |
 MU | Micron | 3.90% | $821.68M | $994.34B | 333.93% | 79Outperform |
 AMD | Advanced Micro Devices | 3.38% | $711.83M | $863.17B | 125.42% | 73Outperform |
 CSCO | Cisco Systems | 1.70% | $356.99M | $423.39B | 55.43% | 77Outperform |
 PLTR | Palantir Technologies | 1.63% | $344.00M | $447.04B | 4.44% | 74Outperform |
 INTC | Intel | 1.58% | $331.64M | $474.96B | 143.89% | 64Neutral |
 LRCX | Lam Research | 1.33% | $279.42M | $330.30B | 85.39% | 77Outperform |
FTEC Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTEC, the sentiment is Neutral. The current price of 283.46 is below the 20-day moving average (MA) of 300.79, below the 50-day MA of 292.18, and above the 200-day MA of 257.55, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 34.21 is Neutral, neither overbought nor oversold. The STOCH value of 11.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTEC.
FTEC Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| FTEC | $283.46 | $340.00(19.95% Upside) | $21.65B | 0.08% | 75Outperform |
 VGT | $118.83 | $155.76(31.08% Upside) | $151.25B | 0.09% | 74Outperform |
 XLK | $183.47 | $237.26(29.32% Upside) | $124.48B | 0.08% | 75Outperform |
 XLF | $55.52 | $63.39(14.18% Upside) | $51.90B | 0.08% | 72Outperform |
 SOXX | $493.39 | $702.06(42.29% Upside) | $41.06B | 0.33% | 71Outperform |
 IYW | $251.24 | $320.38(27.52% Upside) | $25.15B | 0.37% | 76Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FTEC | Fidelity MSCI Information Technology Index ETF | 283.46 | 57.67 | 25.54% | |
| VGT | Vanguard Information Technology ETF | 118.83 | 24.07 | 25.40% | |
| XLK | Technology Select Sector SPDR Fund | 183.47 | 40.03 | 27.91% | |
| XLF | Financial Select Sector SPDR Fund | 55.52 | 3.61 | 6.95% | |
| SOXX | iShares Semiconductor ETF | 493.39 | 202.99 | 69.90% | |
| IYW | iShares U.S. Technology ETF | 251.24 | 51.77 | 25.95% |
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.