Fidelity MSCI Information Technology Index ETF (FTEC): Complete Beginner's Guide
Fidelity MSCI Information Technology Index ETF (FTEC) is a technology ETF from Fidelity with an expense ratio of 0.08% and $15.0B in assets under management. Our Beginner Suitability Score: 8/10 (Great for Beginners). 5-year annualized return: 20.00%.
Last updated: April 2026
Fidelity • Technology
Expense Ratio
0.08%
AUM
$15.0B
Dividend Yield
0.60%
Inception
2013
Beginner Score
8/10
What is Fidelity MSCI Information Technology Index ETF?
FTEC tracks a broad index of U.S. technology companies, from massive software giants to smaller chipmakers. It offers one of the lowest expense ratios in the tech sector, making it a cost-effective way to invest in America's innovation-driven companies. This fund is ideal for investors who believe technology will continue driving economic growth.
FTEC is managed by Fidelity and has been available since 2013. With $15.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.08%, which means for every $10,000 you invest, you pay approximately $8 per year in management fees.
FTEC at a Glance — Key Metrics
| Expense Ratio | 0.08% |
| Total Holdings | 315 |
| P/E Ratio | 32.5 |
| Beta | 1.22 |
| Dividend Yield | 0.60% |
| AUM | $15.0B |
| Inception Year | 2013 |
| Issuer | Fidelity |
Top 10 Holdings in FTEC
FTEC holds 315 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 18.00% |
| 2 | Microsoft Corp. | MSFT | 17.00% |
| 3 | NVIDIA Corp. | NVDA | 14.00% |
| 4 | Broadcom Inc. | AVGO | 5.00% |
| 5 | Salesforce Inc. | CRM | 2.50% |
| 6 | Advanced Micro Devices | AMD | 2.40% |
| 7 | Adobe Inc. | ADBE | 2.30% |
| 8 | Accenture Plc | ACN | 2.10% |
| 9 | Intuit Inc. | INTU | 1.90% |
| 10 | Texas Instruments | TXN | 1.70% |
FTEC's top holding is Apple Inc. (AAPL) at 18.00%, followed by Microsoft Corp. (MSFT) at 17.00% and NVIDIA Corp. (NVDA) at 14.00%. The top 10 holdings account for 66.90% of the fund's 315 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 18.00% |
| 2 | Microsoft Corp. | MSFT | 17.00% |
| 3 | NVIDIA Corp. | NVDA | 14.00% |
| 4 | Broadcom Inc. | AVGO | 5.00% |
| 5 | Salesforce Inc. | CRM | 2.50% |
| 6 | Advanced Micro Devices | AMD | 2.40% |
| 7 | Adobe Inc. | ADBE | 2.30% |
| 8 | Accenture Plc | ACN | 2.10% |
| 9 | Intuit Inc. | INTU | 1.90% |
| 10 | Texas Instruments | TXN | 1.70% |
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FTEC Performance History
Here's how FTEC has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
4.50%
1 Year
28.00%
3 Year
12.00%
5 Year
20.00%
10 Year
19.00%
FTEC has returned 20.00% annualized over 5 years and 19.00% over 10 years. YTD return is 4.50%.
View data table
| Period | Return |
|---|---|
| YTD | 4.50% |
| 1 Year | 28.00% |
| 3 Year | 12.00% |
| 5 Year | 20.00% |
| 10 Year | 19.00% |
Beginner Suitability Score: 8/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
FTEC scores 8/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 315 holdings, and has been available since 2013, giving it a proven track record.
How to Buy FTEC — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "FTEC" — Use the search bar in your brokerage platform to find Fidelity MSCI Information Technology Index ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
FTEC Sector Allocation
Here's how FTEC distributes its investments across different sectors of the economy:
FTEC's largest sector allocation is Technology at 93.0%, followed by Communication Services at 2.0% and Industrials at 1.5%.
View data table
| Sector | Weight |
|---|---|
| Technology | 93.0% |
| Communication Services | 2.0% |
| Industrials | 1.5% |
| Consumer Discretionary | 1.0% |
| Financials | 0.8% |
| Health Care | 0.7% |
| Energy | 0.5% |
| Materials | 0.5% |
Dollar Cost Averaging Into FTEC
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With FTEC's expense ratio of 0.08%, a $10,000 investment would lose approximately $686 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
FTEC's expense ratio of 0.08% costs $686 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $45,924.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,639 | $54 |
| 10 | $21,589 | $21,430 | $159 |
| 15 | $31,722 | $31,371 | $351 |
| 20 | $46,610 | $45,924 | $686 |
Pros and Cons of FTEC
Pros
- ✓One of the cheapest tech sector ETFs available at just 0.08% expense ratio
- ✓Heavy allocation to proven mega-cap tech leaders like Apple and Microsoft
- ✓Broad exposure across software, semiconductors, and IT services sub-sectors
- ✓Strong historical performance driven by secular technology adoption trends
Cons
- ✗Highly concentrated in a single sector with no diversification across industries
- ✗Top-heavy portfolio where a few mega-cap stocks dominate overall returns
- ✗Vulnerable to interest rate increases which tend to pressure growth stock valuations
Frequently Asked Questions
Is FTEC a good ETF for beginners?▾
FTEC has a Beginner Suitability Score of 8/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of FTEC?▾
FTEC has an expense ratio of 0.08%. This means for every $10,000 you invest, you pay approximately $8 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in FTEC?▾
You can invest in FTEC with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does FTEC pay dividends?▾
Yes, FTEC pays dividends with a current yield of approximately 0.60%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in FTEC?▾
The top holdings in FTEC include Apple Inc. (18.00%), Microsoft Corp. (17.00%), NVIDIA Corp. (14.00%), and more. The fund holds 315 total positions, providing broad diversification across many companies.
What sectors does FTEC invest in?▾
FTEC's largest sector allocations are Technology (93.00%), Communication Services (2.00%), Industrials (1.50%). This sector distribution shows a technology-heavy portfolio typical of large-cap U.S. equity funds.
How much do FTEC's fees cost over time?▾
With an expense ratio of 0.08%, a $10,000 investment in FTEC would lose approximately $686 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.