We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the Fidelity MSCI Information Technology Index ETF (FTEC)?
Read MoreHide Full Article
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , a passively managed exchange traded fund launched on 10/21/2013.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $7.37 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. FTEC seeks to match the performance of the MSCI USA IMI Information Technology Index before fees and expenses.
The MSCI USA IMI Information Technology Index represents the performance of the information technology sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 90.60% of the portfolio.
Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL - Free Report) accounts for about 22.82% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT - Free Report) and Nvidia Corp Common Stock Usd.001 (NVDA - Free Report) .
The top 10 holdings account for about 62.50% of total assets under management.
Performance and Risk
The ETF has added about 40.73% and is up about 27.83% so far this year and in the past one year (as of 07/25/2023), respectively. FTEC has traded between $88.99 and $135.73 during this last 52-week period.
The ETF has a beta of 1.15 and standard deviation of 26.11% for the trailing three-year period, making it a medium risk choice in the space. With about 361 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FTEC is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $51.13 billion in assets, Vanguard Information Technology ETF has $53.55 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the Fidelity MSCI Information Technology Index ETF (FTEC)?
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , a passively managed exchange traded fund launched on 10/21/2013.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $7.37 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. FTEC seeks to match the performance of the MSCI USA IMI Information Technology Index before fees and expenses.
The MSCI USA IMI Information Technology Index represents the performance of the information technology sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 90.60% of the portfolio.
Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL - Free Report) accounts for about 22.82% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT - Free Report) and Nvidia Corp Common Stock Usd.001 (NVDA - Free Report) .
The top 10 holdings account for about 62.50% of total assets under management.
Performance and Risk
The ETF has added about 40.73% and is up about 27.83% so far this year and in the past one year (as of 07/25/2023), respectively. FTEC has traded between $88.99 and $135.73 during this last 52-week period.
The ETF has a beta of 1.15 and standard deviation of 26.11% for the trailing three-year period, making it a medium risk choice in the space. With about 361 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FTEC is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $51.13 billion in assets, Vanguard Information Technology ETF has $53.55 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.