Fidelity’s MSCI Information Technology Index ETF (FTEC) closed Monday at $273.16, up 1.13% after opening at $268.50. The fund’s 285 holdings saw a light trading volume of 27,460 shares, well below its 290,820‑share average, yet the price moved within a 2.3% intraday range.
Apple overtakes NVIDIA as top holding
Apple now accounts for 18.55% of FTEC, surpassing NVIDIA’s 16.91% share. Microsoft follows at 9.60%, while Broadcom and Micron sit at 4.17% and 3.59% respectively. The top ten stocks represent 62.23% of the fund’s assets, a rise from the previous composition where the three largest positions summed to 44.66%.
At its current weight, that move alone drags the ETF down roughly 130 basis points, highlighting the fund’s sensitivity to its largest constituent.
Memory sector weakness drives mixed performance
During the session, cloud‑infrastructure names surged: CoreWeave jumped 14.97%, Oracle rose 5.6%, and Snowflake added 6%.
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By contrast, memory stocks tumbled. Micron slipped 3.5% to $794.59 after ChangXin Memory Technologies increased its DRAM share to 8%.
Korean markets reflected the same pressure, with Samsung and SK Hynix each falling nearly 8% as the KOSPI dropped 4%.
A DRAM‑focused ETF has lost about 32% this year, prompting margin calls and forced selling.
The split in performance illustrates a broader fracture within the technology sector. Companies with strong back‑log revenues, such as Oracle, benefit from higher pricing power, while memory manufacturers face a supply‑demand imbalance that threatens margins across the PC and server supply chain.
Future outlook
If memory prices keep falling, hardware makers may see tighter margins, potentially weighing on broader tech earnings.
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Conversely, sustained demand for cloud services could keep names like Oracle and Microsoft buoyant, offsetting some of the downside.
Fund structure and cost considerations
FTEC’s expense ratio stands at 0.084%, placing it among the lowest‑cost technology ETFs.
Index methodology also diverges. XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index, limiting exposure to S&P 500 constituents and resulting in a 77‑stock portfolio. FTEC follows the MSCI USA IMI Information Technology 25/50 Index, encompassing 285 securities across large, mid, and small caps, offering broader diversification beyond the S&P 500.
Performance snapshot
The fund’s 52‑week price range spans $198.17 to $300.79, with the current level 9.2% below the high.
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