2024-06-09 08:38:12 ET
Summary
- The information technology sector now makes up 31.2% of the S&P 500 and tech ETFs account for close to 30% of all fund assets.
- The Fidelity MSCI Information Technology Index ETF offers more exposure to big IT equities away from the two largest IT sector components.
- FTEC has a high weight in top holdings Microsoft, Apple, and NVIDIA, and has a bullish technical outlook with a potential price target of $190.
- But with a high P/E multiple and concentrated allocation, the fund has its risks today while big-cap tech EPS growth is expected to ease.
The AI arms race has never been hotter. By the closing bell last Wednesday, there were three companies worth more than $3 trillion – each from the information technology sector. In all, IT is now 31.2% of the S&P 500 while the sector's forward price-to-earnings ratio is 29.2x. ...
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FTEC: Tech Now Near 30x Earnings With Powerful Momentum