The Fidelity MSCI Information Technology Index ETF (FTEC Quick QuoteFTEC - Free Report) was launched on October 21, 2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

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 1, placing it in top 6%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $16.92 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 0.42%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 100% of the portfolio.

Looking at individual holdings, Nvidia Corp Common Stock Usd.001 (NVDA) accounts for about 16.92% of total assets, followed by Apple Inc Common Stock Usd.00001 (AAPL) and Microsoft Corp Common Stock Usd.00000625 (MSFT).

The top 10 holdings account for about 59.41% of total assets under management.

Performance and Risk

So far this year, FTEC has added roughly 23.91%, and is up roughly 20.81% in the last one year (as of 12/24/2025). During this past 52-week period, the fund has traded between $139.8 and $238.71.

The ETF has a beta of 1.26 and standard deviation of 23.05% for the trailing three-year period, making it a medium risk choice in the space. With about 293 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.

State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $94.40 billion in assets, Vanguard Information Technology ETF has $113.85 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.

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.