What Is FTEC? Fidelity MSCI Information Technology Index ETF
Short answer
FTEC is Fidelity's U.S. technology sector ETF, tracking the MSCI USA IMI Information Technology 25/50 Index for broad exposure to American tech and semiconductor companies. A small number of mega-cap holdings dominate the fund, with Nvidia, Apple, and Microsoft together making up a large share of assets. At a 0.08% expense ratio, it is one of the lowest-cost options in the category and a cheaper alternative to peers like Vanguard's VGT (0.09%) and State Street's XLK. The trade-off is heavy concentration in a single sector and a few names, so it tends to be more volatile than a diversified market fund.
FTEC is issued by Fidelity and tracks MSCI USA IMI Information Technology 25/50 Index. It charges a 0.08% expense ratio, holds approximately approximately $20 billion in assets under management, yields about approximately 0.4%, and launched in October 2013.
What is FTEC?
FTEC is Fidelity's U.S. technology sector ETF, tracking the MSCI USA IMI Information Technology 25/50 Index for broad exposure to American tech and semiconductor companies. A small number of mega-cap holdings dominate the fund, with Nvidia, Apple, and Microsoft together making up a large share of assets. At a 0.08% expense ratio, it is one of the lowest-cost options in the category and a cheaper alternative to peers like Vanguard's VGT (0.09%) and State Street's XLK. The trade-off is heavy concentration in a single sector and a few names, so it tends to be more volatile than a diversified market fund.
FTEC is issued by Fidelity and tracks MSCI USA IMI Information Technology 25/50 Index, so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
FTEC holdings: what's actually inside
FTEC is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of FTEC | |
|---|---|---|---|---|
| 1 | NVDA | NVIDIA Corporation | 16.3% | |
| 2 | AAPL | Apple Inc. | 14.1% | |
| 3 | MSFT | Microsoft Corporation | 8.1% | |
| 4 | MU | Micron Technology, Inc. | 5.5% | |
| 5 | AVGO | Broadcom Inc. | 4.0% | |
| 6 | AMD | Advanced Micro Devices, Inc. | 3.5% | |
| 7 | INTC | Intel Corporation | 2.4% | |
| 8 | AMAT | Applied Materials, Inc. | 2.2% | |
| 9 | LRCX | Lam Research Corporation | 2.1% | |
| 10 | CSCO | Cisco Systems, Inc. | 1.9% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
Themes FTEC is commonly used to express
ETFs are passive bundles; thematic baskets in Walnut let you concentrate within them. If you hold FTEC as a core position, these are the themes you might layer on as satellites.
The bottom line on FTEC
FTEC offers cheap, broad access to the U.S. technology sector and has benefited from the dominance of Nvidia, Apple, Microsoft, and the semiconductor group. Because a handful of mega-cap and chip stocks drive most of its returns, it carries significant sector and single-stock concentration risk.
More on FTEC
Whether FTEC is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is FTEC a buy?
FTEC yields approximately 0.4% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see FTEC dividend: yield and schedule.
Build a portfolio around FTEC with Walnut
Use FTEC as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is FTEC?
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FTEC is the Fidelity MSCI Information Technology Index ETF, a passively managed fund that tracks the MSCI USA IMI Information Technology 25/50 Index. It gives broad exposure to U.S. technology companies across large, mid, and small caps, though its returns are driven mostly by a few mega-cap names. Walnut is informational, not investment advice.
What is FTEC's expense ratio?
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FTEC has an expense ratio of 0.08%, which works out to about $8 per year on a $10,000 investment. That makes it one of the lowest-cost technology sector ETFs available and slightly cheaper than Vanguard's VGT at 0.09%.
FTEC vs VGT vs XLK?
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All three are U.S. technology sector ETFs with similar mega-cap holdings, but they differ in index and breadth. FTEC (0.08%) and VGT (0.09%) both track broad MSCI tech indexes covering hundreds of stocks, while XLK tracks the narrower S&P 500 tech sector with around 65 holdings. FTEC is the cheapest of the three by a hair, but the practical performance differences between FTEC and VGT are minor. Walnut is informational, not investment advice.
What does FTEC hold?
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FTEC holds roughly 280 to 290 U.S. technology stocks, but it is heavily top-weighted. Its largest positions include Nvidia, Apple, and Microsoft, followed by semiconductor and chip-equipment names such as Micron, Broadcom, AMD, Intel, Applied Materials, and Lam Research. The top 10 holdings make up well over half the fund.
Does FTEC pay a dividend?
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Yes, FTEC pays a dividend, but the yield is low at roughly 0.4%. Technology companies tend to reinvest earnings rather than pay large dividends, so FTEC is held primarily for growth and price appreciation rather than income. Distributions are typically paid quarterly.
Is FTEC a good investment?
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FTEC offers cheap, broad exposure to the U.S. technology sector and has performed strongly alongside the AI and semiconductor boom. Whether it fits a given portfolio depends on your goals, time horizon, and tolerance for concentration risk, since a single sector and a few stocks drive most of its returns. Walnut is informational, not investment advice.
How concentrated is FTEC?
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FTEC is highly concentrated despite holding hundreds of stocks. Nvidia and Apple alone often account for roughly 30% of the fund, and the top 10 holdings make up well over half of assets. This means strong gains when mega-cap tech leads, but sharper drawdowns when those few names fall. Walnut is informational, not investment advice.
What are the risks of investing in FTEC?
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FTEC carries significant sector and single-stock concentration risk because it invests only in technology and is dominated by a handful of mega-cap and semiconductor names. It can be more volatile than a diversified market index fund and is sensitive to interest rates, valuations, and shifts in AI and chip demand. Walnut is informational, not investment advice.
How do I compare FTEC to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. FTEC's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against Fidelity's fund page or your broker before investing.