FTEC: High Growth ETF With A Low Expense Ratio
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George Spritzer, CFAInvesting GroupFollow5ShareSavePlay(8min)Comment(1)SummaryThe Fidelity MSCI Information Technology Index ETF offers diversified, low-cost exposure to U.S. technology stocks, with strong historical outperformance versus peers.FTEC's portfolio is heavily weighted toward semiconductors (31%), with large caps comprising 76% of holdings and a low 0.08% expense ratio.The ETF has delivered robust annualized returns: 21.97% over 10 years, 17.57% over 5 years, and 32.92% over 3 years.Given recent strong performance and low yield, I recommend gradually scaling into FTEC, especially as interest rates are expected to decline. Maskot/DigitalVision via Getty Images The technology sector has been a great place to be invested over the last ten years. But a key question is: Is it still worthwhile to have above-average allocations to the technology sector which are in line with indexes like the S&PThis article was written byGeorge Spritzer, CFA4.98K FollowersFollowGeorge Spritzer, CFA is a registered investment advisor who specializes in managing closed-end funds for individuals. George also shares his understanding of how to profit from investing with special situations as a catalyst. George is a contributor to the investing group Yield Hunting: Alt Inc Opps, a premium service dedicated to income investors who are searching for yield without the high risk of the equity market. The group manages four portfolios with a range of yield targets, a monthly newsletter, weekly commentary, rankings of CEFs based on yield, trade alerts, and access to chat for questions. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of FTEC, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.