FTEC ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An introduction to FTEC, the Fidelity MSCI Information Technology Index ETF. It holds semiconductors, software, and hardware across the US tech sector, and its low expense ratio, quarterly dividends, and broad diversification are the key points of comparison against VGT and XLK and the main reasons to consider it for long-term investing.
SubscribeWhat Is the Fidelity MSCI Information Technology Index ETF?
This is a passive ETF that tracks the MSCI USA IMI Information Technology 25/50 Index, holding US information technology stocks from large caps to small and mid caps on a market-cap-weighted basis. It provides broad technology exposure spanning semiconductors, software, and hardware.
It suits long-term investors who want to diversify across the entire US technology sector with a single holding while prioritizing low fees.
It is an ETF managed by Fidelity using a passive (index-tracking) approach.
How Do You Invest in the Fidelity MSCI Information Technology Index ETF?
| Item | Details |
|---|---|
| Tracked index | MSCI USA IMI Information Technology 25/50 |
| Management style | Passive (index tracking) |
| Rebalancing frequency | Once per quarter |
| Dividend frequency | Quarterly dividends |
| Manager | Fidelity |
| Total expense ratio | 0.08% |
The fund holds the constituents of the MSCI USA IMI Information Technology Index using a representative sampling approach to track sector-wide performance. Large semiconductor, software, and hardware companies account for the top weightings, and changes to the index composition are reflected automatically through quarterly rebalancing.
- Fees lower than the category average
- Broad technology sector diversification from large caps to small and mid caps
Fidelity MSCI Information Technology Index ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $21.7B, and the total expense ratio is 0.08% per year.
Compared with the peer technology sector ETFs VGT and XLK, its fee level is similarly low, and it shares a similar character in terms of broad diversified exposure.
Fidelity MSCI Information Technology Index ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund moves in line with the technology sector as a whole and tends to react sensitively to the earnings of large semiconductor and software companies and to the interest rate environment. Because of its sector concentration, volatility tends to be higher than the market average.
Inflows tend to increase when expectations for technology sector growth are high, while outflow pressure grows when rising interest rates or valuation concerns come to the fore. Demand for core sector exposure forms the foundation of its fund flows.
Fidelity MSCI Information Technology Index ETF Pros and Cons
Its strengths are low fees and broad technology sector diversification, while its weaknesses are the volatility that comes with sector concentration and a heavy tilt toward top holdings.
💪 Key Strengths
⚠️ Points to Watch
Fidelity MSCI Information Technology Index ETF Alternatives and Related Products
VGT, XLK, and IYW, shown in the table, are direct substitutes that track the same US technology sector, though they differ in fees and index composition. If you want narrower exposure, SOXX (semiconductors) and IGV (software) in the table are also worth considering. Outside the table, you could also consider QQQM, which tracks the Nasdaq 100 with its high technology weighting, and ROM if you want leveraged exposure to the technology sector.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGT | Vanguard Information Technology ETF | $116.96 | -4.3% | $151.4B | 0.09% | 0.4% | +18.3% |
 XLK | State Street Technology Select Sector SPDR ETF | $179.51 | -4.9% | $124.7B | 0.08% | 0.47% | +19.5% |
 SOXX | iShares Semiconductor ETF | $471.51 | -8.2% | $47.6B | 0.33% | 0.27% | +54.4% |
 IYW | iShares U.S. Technology ETF | $242.67 | -4.3% | $24.9B | 0.37% | 0.1% | +16.8% |
 IGV | iShares Expanded Tech-Software Sector ETF | $104.29 | -3.4% | $13.9B | 0.38% | 0.02% | -8.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| NVDA | NVIDIA Corp | 0.35% | $204.64 | -4.2% | $4.93T | 25.9 | 0.38% |
| AAPL | Apple Inc | 0.31% | $344.63 | -1.2% | $5.03T | 39.5 | 0.32% |
| MSFT | Microsoft Corp | 0.20% | $521.91 | -1.6% | $3.88T | 27.3 | 0.74% |
| AVGO | Broadcom Inc | 0.09% | $326.08 | -5.5% | $1.56T | 41.6 | 0.8% |
| MU | Micron Technology Inc | 0.04% | $884.74 | -5.3% | $1.00T | 11.9 | 0.08% |
| AMD | Advanced Micro Devices Inc | 0.03% | $504.80 | -10.9% | $824.1B | 129.6 | - |
Investor Checkpoints for the Fidelity MSCI Information Technology Index ETF
Here are the points to review before investing in FTEC. It is a low-fee, core technology sector ETF, but you should also check its single-sector concentration and the resulting volatility, its top holdings concentration, and its currency exposure before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative cost impact over long holding periods | Remains low |
| 📊 Sector concentration | Degree of exposure to the single information technology sector | Concentrated in technology |
| 📈 Top holdings weight | Trend in the tilt toward large semiconductor and software stocks | Large top weightings |
| 💱 Exchange rate | Impact on returns converted into Korean won | Unhedged |
Single-sector concentration and the tilt toward top holdings are the main drivers of volatility. During technology stock corrections, declines can be larger than the market average, so adjusting your portfolio weighting is necessary.
It is a suitable choice for long-term investors who want broad exposure to the US technology sector at low cost. We recommend deciding by comparing its fees and index composition with VGT and XLK.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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