FTEC ETF

Earnings growth among the Magnificent 7 companies is driving the S&P 500's EPS growth, with broader earnings increases expected through Q4 2025. I maintain a hold rating on FTEC due to strong momentum and technical strength, but caution about its high PEG ratio of 2.1x. FTEC's top three holdings—Apple, NVIDIA, and Microsoft—comprise over 40% of the ETF, with significant volatility and a current price-to-earnings multiple just shy of 29.

Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on 10/21/2013.

Fidelity MSCI Information Technology Index ETF is a low-cost, large-cap, technology-concentrated portfolio strategy with top holdings in Apple, Microsoft, and Nvidia. The FTEC ETF is highly concentrated, with the top 10 holdings controlling 61% of the portfolio weight, primarily driven by the top 3 holdings. This compares to 50% in QQQ. Despite risks in the tech industry, FTEC poses as a strong investment opportunity for exposure to the AI growth market, with a 3-5% allocation recommendation.

Fidelity MSCI Information Technology Index ETF has seen nearly a 33% upside over the past year. Valuations for certain chip stocks have become expensive, but there are still opportunities for growth in the AI space. However, risks have emerged for Application Software companies due to the disruptive nature of Gen AI, making it not the appropriate time to invest in the ETF.

The information technology sector now makes up 31.2% of the S&P 500 and tech ETFs account for close to 30% of all fund assets. The Fidelity MSCI Information Technology Index ETF offers more exposure to big IT equities away from the two largest IT sector components. FTEC has a high weight in top holdings Microsoft, Apple, and NVIDIA, and has a bullish technical outlook with a potential price target of $190.

The Fidelity MSCI Information Technology Index ETF (FTEC) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.

Investing in ETFs can offer investors solid diversification and potentially strong returns. The Fidelity MSCI Information Technology Index has significantly outperformed the S&P 500 in the last ten years.

Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on 10/21/2013.

Fidelity MSCI Information Technology Index ETF is a strong contender for investors seeking solid tech exposure. FTEC has performed in line with VGT and has a highly concentrated portfolio with 45% of AUM in Microsoft, Apple, and NVIDIA. Consensus estimates suggest potential upside of 7% to year-end 2024, but the heavy concentration in three stocks may increase volatility.