Invest in the Broad Information Technology Sector with This Fund

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.
[networked computers]

Technology stocks have been one of the hottest trends out there for a great number of years.

Investors in this sector have seen almost consistent, outsized returns for roughly the last 20 years. It is no wonder that the world of exchange-traded funds (ETFs) has come together to present investors with such a wide array of ways to invest in the sector. Fidelity MSCI Information Technology Index ETF (FTEC) is one contender in this expansive universe.

The index tracked by this fund is designed to capture the large-, mid- and small-cap segments of U.S. information technology stocks. Large-cap stocks are the most strongly represented, and the fund is fully invested in domestic companies.

Although there are some rules about diversification, in practice, the fund has a strong concentration in a few stocks, mainly Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which together make up more than 35% of the fund’s portfolio. Over the course of the last year, the fund has performed characteristically well.

It is up 35%, slightly ahead of both the NASDAQ and the S&P 500. Its year-to-date results similarly have slightly outperformed those market indicators. The fund has a low expense ratio of 0.08% and more than $6 billion in assets under management. The fund also is quite liquid and easy to trade.

Chart courtesy of

Top holdings for this fund include Apple Inc. (NASDAQ: AAPL), 20.16%; Microsoft Corp. (NASDAQ: MSFT), 16.87%; NVIDIA Corp. (NASDAQ: NVDA), 4.46%; Visa Inc. (NYSE: V), 2.98%; and PayPal Holdings (NASDAQ: PYPL), 2.53%. The top 10 holdings account for 57.5% of the fund’s assets.

For investors looking for a way to invest in the information technology sector without paying high expense ratios, Fidelity MSCI Information Technology Index ETF (FTEC) may belong on your list of funds to research.

share on:

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor