Tech stocks are hot buys again this year with investors bullish on artificial intelligence. And even though valuations may be high right now, tech is generally a good place to invest in for the long haul. One exchange-traded fund (ETF) that gives investors great exposure to tech stocks is the Fidelity MSCI Information Technology Index (NYSE Arca:FTEC).
The Fidelity MSCI Information Technology Index ETF offers investors broad exposure to the technology sector, covering various segments such as software, hardware, semiconductors, IT services, and more. By investing in this ETF, investors gain exposure to a comprehensive range of industry-leading companies, including giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and NVIDIA (NASDAQ:NVDA). Combined, those three stocks account for about half of the fund's holdings. While that is a lot of exposure to just three stocks, those are arguably some of the safest investments in tech, and so that gives the fund some solid pillars anchoring its success in the long run. And the overall risk is low as medium and small cap stocks account for less than 15% of the fund's total holdings.
In total, there are 360 holdings in the ETF and it is a passively managed fund with a low expense ratio of just 0.08%. This year, the Fidelity MSCI Information Technology fund has risen by 35%, which is a far better performance than the S&P 500, which is up 14% thus far.
With many solid companies in this ETF in multiple sectors, this can be an excellent fund to invest money into and to help build your wealth in over the long term.
