XLK - FTEC: Tech ETF Matches Up Well Against Bigger ETFs But Risk/Reward An Issue Currently
2024-06-10 15:33:07 ET
Summary
- While the Fidelity Tech ETF measures up well against other tech ETFs, now may not be the right time to add any of them to your portfolio.
- The long-term outlook for fund and the tech sector appear to be good, but the short-term risk/reward picture is a concern.
- The bigger funds in the peer group are heavily concentrated when it comes to their top holdings, with three stocks representing over 40% of the assets.
As it currently stands, many indicators point towards a positive future for the Fidelity MSCI Information Technology ETF ( FTEC ), however, several looming factors are creating risk for the fund’s performance in the short term....
FTEC: Tech ETF Matches Up Well Against Bigger ETFs, But Risk/Reward An Issue Currently