Fidelity MSCI Information Technology Index ETF (FTEC): Complete Beginner's Guide
Last updated: March 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% |
Recommended: This beginner-friendly ETF course on Udemy covers everything from ETF fundamentals to building a recession-proof portfolio in 7 days.
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%
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.
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.
Get the Free ETF Portfolio Blueprint
3 model portfolios for beginners — Conservative, Balanced, and Growth. See exactly which ETFs to buy.
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.