This is an actively managed ETF that invests in a concentrated group of disruptive technology companies with the potential to reshape existing industries. The portfolio team selects companies with new technologies and new business models and allocates most of the fund's assets to this theme.

It suits investors who want actively managed exposure to the high-growth innovation technology theme and are willing to accept high volatility.

It is an ETF run by Fidelity using an active management approach.

The portfolio team directly selects companies leading disruptive innovation and allocates most of the fund's assets to the disruptive technology theme. Unlike a passive approach that replicates an index as is, holdings and weightings are adjusted at the team's judgment, and because the fund is non-diversified, weight tends to be concentrated in a small number of core holdings.

• Active security selection based on the portfolio team's discretion
• Concentrated exposure specialized in the disruptive technology theme

Assets under management (AUM) stand at $298.0M, and the Total Expense Ratio is 0.50% per year.

Active management is what sets it apart from similar technology and innovation thematic ETFs, but it also raises both the fee burden and the dependence on management performance.

Given the nature of the innovation technology theme, the fund reacts sensitively to market risk appetite and the interest rate environment, and it has shown large swings in both strong and weak phases for growth stocks. Its short-term return volatility tends to be higher than that of broad core ETFs.

Thematic and actively managed ETFs tend to see large swings in fund flows depending on market risk appetite. Money flows in when interest in innovation technology rises, and outflow pressure grows during risk-averse phases, a pattern that repeats.

Its strength is innovation technology exposure through active management, while its weaknesses are high volatility, the fee burden, and concentration risk.

SMH, IHAK, and SHLD shown in the table are ETFs with exposure to different innovation sub-themes, namely semiconductors, cybersecurity, and defense technology, and most of them track passive indexes, which differs from this fund's active management. You can also compare XLK and VGT, which offer low-fee exposure to the broad technology sector, as well as QQQ, which has a high weighting in Nasdaq 100 technology stocks. Because these follow an index, their dependence on management performance is relatively low.

Here are the points to check before investing in FDTX. As an actively managed thematic ETF, it is important to confirm in advance that it relies on discretionary selection by the portfolio team rather than index tracking, along with its fee burden, the volatility typical of innovation themes, and the concentration of its non-diversified structure.

Because of its focus on the innovation technology theme and its non-diversified structure, volatility is large as market risk appetite shifts. You should also consider that if active management results fall short of expectations, the fund could lag broad core ETFs.

It is a suitable choice for investors who want actively managed exposure to the innovation technology theme. If the fee and volatility burden feels too heavy, you can consider alternatives such as the low-fee technology sector ETFs XLK and VGT.