Table of Contents
- Introduction
- Key Metrics & Market Sentiment
- Short-Term Price Predictions (2025)
- 5-Day to 1-Month Forecast
- Drivers Behind the Short-Term Forecast
- Long-Term Price Predictions (2025–2030)
- Yearly Forecast Summary
- Long-Term Catalysts
- Technical Analysis
- Moving Averages
- Momentum Indicators
- Volatility Analysis
- Investment Potential & ROI Scenarios
- Short-Term Investment: 1 Month
- Medium-Term Investment: 1 Year
- Long-Term Investment: 5 Years (2030)
- Monthly Forecast Breakdown (2025)
- March 2025
- April 2025
- May 2025
- November 2025
- Risk Factors & Market Dynamics
- External Risks
- Internal Risks
- Historical Performance & Analyst Ratings
- Historical Stock Price
- Analyst Consensus
- Frequently Asked Questions (FAQs)
- Conclusion
1. Introduction
Fidelity MSCI Information Technology Index ETF (FTEC) is an ETF focused on U.S.-based technology companies. It tracks the MSCI USA IMI Information Technology 25/50 Index. With 296 holdings, it represents a wide array of tech sector stocks. Major positions include Apple, Microsoft, and NVIDIA, which make up nearly 47% of the fund.
Launched in October 2013, FTEC has built a strong investor base due to its exposure to top-performing companies. As of April 9, 2025, the ETF trades at $143.29. It has shown mixed results over the past year but remains popular among technology-focused investors.
2. Key Metrics & Market Sentiment
| Metric | Value |
|---|---|
| Assets Under Management | $10.08 Billion |
| Expense Ratio | 0.08% |
| PE Ratio | 30.57 |
| Shares Outstanding | 70.55 Million |
| Dividend Yield | 0.63% |
| Dividend (TTM) | $0.90 |
| Beta | 1.23 |
| 1-Year Return | -7.21% |
| Volume (Apr 9, 2025) | 252,869 |
The ETF currently trades close to its 52-week low ($134.11), with a high of $193.06 in the past year. The recent uptick of 2.49% shows short-term optimism, though long-term performance has declined.
Data Source: Fidelity
3. Short-Term Price Predictions (2025)
5-Day to 1-Month Forecast
In the next 5 days, FTEC is expected to remain between $140 and $145 based on current market sentiment. If broader indices show continued recovery, FTEC could approach the $148 mark by month-end.
Drivers Behind the Short-Term Forecast
- NVIDIA and Apple Earnings: Both companies have upcoming quarterly results. Any positive surprise can lift the ETF.
- Interest Rates: Fed signals a pause in rate hikes which is good for growth stocks.
- Tech Sector Rebalancing: Rebalancing of institutional portfolios can lead to short-term buying.
4. Long-Term Price Predictions (2025–2030)
4.1 Yearly Forecast Summary
| Year | Expected Price Range | Average Return |
|---|---|---|
| 2025 | $135 – $165 | +5% |
| 2026 | $155 – $180 | +9% |
| 2027 | $175 – $200 | +11% |
| 2028 | $190 – $215 | +12% |
| 2029 | $200 – $225 | +10% |
| 2030 | $210 – $240 | +9% |
4.2 Long-Term Catalysts
- AI and Cloud Computing: Continued adoption supports long-term revenue growth for top holdings.
- Semiconductor Advancements: Demand in 5G and AI pushes growth for NVIDIA, Broadcom, and others.
- Low Expense Ratio: With just 0.08%, it remains cost-efficient for long-term investors.
5. Technical Analysis
Moving Averages
- 50-Day Moving Average: $145.78
- 200-Day Moving Average: $159.63 The price is currently below both averages, indicating a potential oversold condition.
Momentum Indicators
- RSI (14-day): 42.3 (approaching oversold)
- MACD: Showing a mild bullish crossover
Volatility Analysis
- Beta: 1.23 (slightly higher than market)
- Average True Range (ATR): 2.84 FTEC shows moderate volatility, consistent with tech sector patterns.
6. Investment Potential & ROI Scenarios
Short-Term Investment: 1 Month
- Entry Point: $140
- Target Price: $148
- ROI: ~5.7%
Medium-Term Investment: 1 Year
- Expected Average Return: 8% – 10%
- Price Target: $160 – $170
Long-Term Investment: 5 Years (2030)
- Target Price: $220
- ROI: ~54%
- Annualized Return: ~9.1%
7. Monthly Forecast Breakdown (2025)
March 2025
- Opening Price: $139.25
- Closing Price: $140.91
- Comment: Stabilized due to reduced market volatility
April 2025
- Forecast Range: $140 – $148
- Catalysts: Earnings season, Fed comments
May 2025
- Forecast Range: $142 – $150
- Catalysts: Tech conference trends, AI adoption data
November 2025
- Forecast Range: $150 – $160
- Catalysts: Holiday season sales, Year-end portfolio balancing
8. Risk Factors & Market Dynamics
External Risks
- Interest Rate Changes: Rapid rate hikes could lower tech valuations
- Geopolitical Issues: U.S.-China tensions impact chipmakers
- Market Corrections: General market drops can affect ETF
Internal Risks
- Top Holdings Concentration: Apple, Microsoft, and NVIDIA make up over 46%, increasing reliance on few stocks
- Dividend Yield: Low yield may not appeal to income-focused investors
9. Historical Performance & Analyst Ratings
Historical Stock Price
- 2023 High: $193.06
- 2024 Low: $134.11
- YTD (2025): -7.21%
Analyst Consensus
- Morningstar Rating: 4 Stars
- Zacks Rank: 2 (Buy)
- ETF.com Liquidity Rating: A+
10. Frequently Asked Questions (FAQs)
Is FTEC a good buy right now?
Yes, especially for long-term investors who want exposure to top U.S. tech stocks.
What are the dividend payments like?
It pays quarterly. The TTM dividend is $0.90, yielding around 0.63%.
Is the ETF risky?
It has moderate risk due to its tech focus and reliance on a few large companies.
11. Conclusion
FTEC offers broad access to the U.S. technology sector. It is backed by stable companies like Apple and Microsoft. Short-term performance might remain volatile. However, long-term projections remain positive due to ongoing innovation in AI, cloud, and software. Investors seeking diversified exposure in tech should consider it for portfolios focused on growth.
Sources:
Data updated as of April 9, 2025.