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

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options 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 2, placing it in top 13%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $17.83 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

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

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 0.39%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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 18.39% 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 58.89% of total assets under management.

Performance and Risk

The ETF has gained about 9.12% and it's up approximately 51.56% so far this year and in the past one year (as of 04/29/2026), respectively. FTEC has traded between $163.41 and $248.85 during this last 52-week period.

The ETF has a beta of 1.26 and standard deviation of 23.18% for the trailing three-year period, making it a medium risk choice in the space. With about 282 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 an excellent 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 Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $102.87 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $123.68 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.