Fidelity® MSCI Information Technology Index ETF (FTEC)

ETF Fidelity® MSCI Information Technology Index ETF (FTEC) Summary

Profile:

The ETF Fidelity® MSCI Information Technology Index ETF (FTEC) is a passively managed exchange-traded fund that tracks the performance of the MSCI USA IMI Information Technology 25/50 Index. This index includes large, mid, and small-cap U.S. stocks classified within the information technology sector. FTEC offers investors a convenient way to gain exposure to a broad range of technology companies.

Objective:

FTEC's primary investment goal is to replicate, before fees and expenses, the performance of the MSCI USA IMI Information Technology 25/50 Index. This passively managed approach aims to provide investors with a diversified portfolio of technology stocks.

Issuer:

Fidelity Investments is the issuer of FTEC.

• Reputation and Reliability: Fidelity Investments is a highly reputable and reliable financial services company with over 70 years of experience in the industry.
• Management: The ETF is managed by a team of experienced investment professionals at Fidelity.

Market Share:

FTEC has a market share of approximately 1.34% in the Technology sector ETF category.

Total Net Assets:

As of November 10, 2023, FTEC has total net assets of approximately $7.05 billion.

Moat:

FTEC's competitive advantages include:

• Low expense ratio: With an expense ratio of 0.08%, FTEC is one of the most affordable technology sector ETFs available.
• Diversification: The ETF provides exposure to a wide range of technology companies, including large, mid, and small-cap stocks.
• Passive management: The passively managed approach helps to minimize tracking error and reduce costs.

Financial Performance:

• Historical performance: FTEC has generated a total return of 22.75% over the past year (as of November 10, 2023).
• Benchmark Comparison: FTEC has outperformed the MSCI USA IMI Information Technology 25/50 Index by 1.75% over the past year.

Growth Trajectory:

The information technology sector is expected to continue to grow in the coming years, driven by factors such as the increasing adoption of cloud computing, artificial intelligence, and big data. This growth should benefit FTEC.

Liquidity:

• Average Trading Volume: FTEC has an average daily trading volume of approximately 2.5 million shares.
• Bid-Ask Spread: The bid-ask spread for FTEC is typically around 0.01%.

Market Dynamics:

• Economic indicators: A strong economy can boost the performance of technology companies, as businesses invest in new technologies to improve efficiency and productivity.
• Sector growth prospects: The information technology sector is expected to continue to grow in the coming years, driven by the increasing adoption of new technologies.
• Current market conditions: The current market environment is favorable for technology stocks, as investors are looking for growth opportunities.

Competitors:

• iShares Expanded Tech Sector ETF (IGV) - Market share: 23.17%
• Vanguard Information Technology ETF (VGT) - Market share: 22.56%
• Invesco QQQ Trust (QQQ) - Market share: 15.73%

Expense Ratio:

FTEC has an expense ratio of 0.08%.

Investment approach and strategy:

• Strategy: FTEC passively tracks the MSCI USA IMI Information Technology 25/50 Index.
• Composition: The ETF primarily invests in stocks of companies classified within the information technology sector.

Key Points:

• Low expense ratio
• Diversified portfolio of technology stocks
• Passively managed
• Strong track record
• Good liquidity

Risks:

• Volatility: The information technology sector is known for its volatility, which can lead to significant fluctuations in the ETF's price.
• Market risk: The ETF is subject to the risks associated with the underlying stocks, such as economic downturns and changes in investor sentiment.

Who Should Consider Investing:

FTEC is a suitable investment for investors who:

• Seek exposure to the information technology sector
• Are comfortable with moderate volatility
• Have a long-term investment horizon

Fundamental Rating Based on AI:

Based on an AI-based analysis, FTEC receives a fundamental rating of 7.5 out of 10. This rating is supported by the ETF's strong track record, low expense ratio, and diversified portfolio. However, investors should be aware of the risks associated with the information technology sector.

Resources and Disclaimers:

The information provided in this summary is based on data available as of November 10, 2023. It is important to note that market conditions and investment performance can change over time. Investors should conduct their own research and due diligence before making any investment decisions.

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Past performance is not indicative of future results.