FTEC: A High Beta ETF Focused on the High-Growth Information Technology Sector

FTEC is a high beta ETF focused on the information technology sector, offering targeted exposure to this rapidly growing market. The ETF is designed to track the performance of the Fidelity MSCI Information Technology Index, providing investors with a concentrated portfolio of IT stocks. With a high beta, the ETF is expected to be more volatile than the broader market, making it suitable for investors seeking to amplify their returns.

The Fidelity MSCI Information Technology Index ETF (FTEC) is a high beta ETF focused on the information technology sector, offering targeted exposure to this rapidly growing market. Launched on October 21, 2013, FTEC is designed to track the performance of the Fidelity MSCI Information Technology Index, providing investors with a concentrated portfolio of IT stocks.

Key Features

Passive Management and Low Costs
FTEC is a passively managed ETF, which means it seeks to replicate the performance of its benchmark index, the MSCI USA IMI Information Technology 25/50 Index. This strategy is associated with lower costs compared to actively managed funds. The ETF has an annual operating expense ratio of 0.08%, making it one of the least expensive products in the space [1].

High Beta and Volatility
FTEC has a high beta of 1.25, indicating that it is expected to be more volatile than the broader market. This makes it suitable for investors seeking to amplify their returns. The ETF's standard deviation of 24.87% over the trailing three-year period underscores its higher risk profile [1].

Performance

Historical Returns
Since its inception in 2013, FTEC has delivered robust returns. As of August 18, 2025, the ETF has added roughly 12.84% year-to-date and is up about 23.07% over the last 12 months. Over the past 52 weeks, FTEC has traded between $139.8 and $210.39 [1].

Comparative Performance
FTEC has outperformed both the iShares Core S&P 500 ETF (IVV) and the Invesco QQQ Trust ETF (QQQ) in several years. For instance, FTEC's 5-year annualized total return of 19.53% exceeded the 15.84% of IVV and 17% of QQQ [2].

Sector Exposure and Top Holdings

Diversification
FTEC offers diversified exposure to the information technology sector, with about 285 holdings. The top 10 holdings account for approximately 59.54% of total assets under management. Nvidia Corp (NVDA) is the largest holding, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL) [1].

Risk and Alternatives

Risk Metrics
The ETF's beta of 1.25 and standard deviation of 24.87% indicate a medium risk profile. However, it is important to note that FTEC's high beta and volatility make it a suitable choice for investors seeking to amplify their returns [1].

Alternatives
Investors may also consider other ETFs in the technology sector, such as the Technology Select Sector SPDR ETF (XLK) and the Vanguard Information Technology ETF (VGT). These ETFs have larger assets under management and slightly different expense ratios [1].

Conclusion

The Fidelity MSCI Information Technology Index ETF (FTEC) is a high beta ETF offering targeted exposure to the information technology sector. With its low costs, high returns, and diversified portfolio, FTEC is an attractive option for investors seeking to amplify their returns. However, its high volatility and risk profile should be carefully considered before investing.

References

[1] https://finance.yahoo.com/news/invest-fidelity-msci-information-technology-102002147.html
[2] https://seekingalpha.com/article/4814580-ftec-high-beta-etf-laser-focused-on-information-technology