What are disruptive technology ETFs and how do they compare?

Disruptive technology ETFs invest in companies developing transformative innovations. FBOT focuses specifically on automation themes, while FDTX covers broader disruptive technologies. Both are actively managed by Fidelity, targeting growth opportunities in technology sectors. The key difference lies in their investment focus - FBOT concentrates on automation advancements, while FDTX offers wider technology exposure. Investors should understand that these ETFs may have higher volatility than traditional funds due to their specialized focus on emerging technologies.

How do expense ratios affect long-term ETF investing?

The expense ratio represents the annual fee percentage that fund managers charge. Both FBOT and FDTX have identical expense ratios of 0.50%. This means they charge the same management fees relative to assets. A lower expense ratio generally benefits long-term investors by preserving more capital. However, since both funds charge the same fee, cost comparison between them is neutral. Investors should consider total fees alongside performance and other factors when evaluating ETFs.

What is an ETF's inception date and why does it matter?

An ETF's inception date marks when it began trading. Both FBOT and FDTX launched on April 16, 2020, giving them identical track records. This means neither fund has more historical performance data than the other. A longer track record can provide more confidence in how the fund performs through different market cycles. However, with only about six years of history, both funds offer limited long-term performance data for comprehensive analysis.

How do holdings differ between automation and technology ETFs?

FBOT focuses on automation companies, with top holdings including Deere and Teradyne. FDTX targets broader technology firms, emphasizing semiconductors like Micron and Marvell. While both funds hold NVDA and PLTR, FBOT has more industrial automation exposure. The key difference is FBOT's focus on automation applications across sectors, while FDTX concentrates purely on technology and semiconductor companies. This results in different risk profiles and growth opportunities for each fund.

What is ETF diversification and how do these funds provide it?

ETF diversification spreads investment across multiple companies to reduce risk. FBOT offers diversified exposure to automation companies across various industries, including large-cap holdings like Deere and Teradyne. FDTX provides technology sector diversification but with more concentrated holdings in semiconductors. Both funds hold multiple securities, but their diversification levels differ - FBOT spans industrial sectors while FDTX concentrates within technology. True diversification depends on the correlation between held companies rather than just the number of holdings.

How do dividend yields compare between these ETFs?

FBOT provides a 0.40% dividend yield, offering small income alongside growth potential. FDTX pays no dividends (0.00% yield), focusing entirely on capital appreciation. The dividend yield difference means FBOT offers minimal income while FDTX reinvests all returns. Both yields are considered low, typical for growth-oriented ETFs. Investors seeking regular income might prefer funds with higher yields, while growth-focused investors might prioritise capital appreciation over dividends.

How do these funds respond to different market cycles?

Both FBOT and FDTX target growth sectors, potentially performing well during technology booms. FDTX may be more sensitive to semiconductor cycles, while FBOT could respond to broader industrial automation trends. These funds experienced market volatility since their April 2020 inception through multiple cycle phases. Technology funds often face higher volatility than broader market ETFs. Their performance depends on innovation adoption rates, sector growth patterns, and broader economic conditions rather than just market direction.

What does fund size mean for investors?

FBOT manages $209 million in net assets, while FDTX oversees $295 million. Larger AUM may indicate broader investor acceptance but isn't always better. Both funds are relatively small compared to major sector ETFs. AUM affects liquidity and tracking differences. Mid-sized funds often balance flexibility with stability. Neither fund's size provides a clear advantage; investors should focus on strategy, costs, and objectives rather than fund size alone.

How do you compare top holdings for overlap?

Both FBOT and FDTX share four top-10 holdings: NVDA, PLTR, GOOG, and AMZN. This overlap indicates some common investment themes despite different focuses. FBOT holds these with lower weights than FDTX. NVDA and PLTR appear in both top holdings lists, suggesting technology and AI are central to both strategies. Investors should examine not just overlapping stocks but also the weight differences and sector exposure patterns that make each fund unique.

How do investors begin with ETF comparisons?

Start by examining fundamental factors: expense ratios, track records, holdings, and objectives. Compare Fidelity's FBOT and FDTX by noting their identical fees and inception dates. Analyse their top holdings and sector exposures to understand differences. Read prospectuses for complete information about strategies and risks. Educational resources help build understanding without providing financial advice. Beginners should understand that ETF comparisons require examining multiple factors rather than choosing based on single metrics like past performance or yields.

Which fund is best for growth vs income investors?

FBOT might suit investors wanting automation exposure with modest income from its 0.40% yield. FDTX targets pure capital appreciation with 0.00% dividend yield but concentrated technology exposure. Growth investors focused on semiconductors might prefer FDTX's tech-heavy holdings. Automation-themed growth investors might lean towards FBOT's diversified industrial approach. Neither fund is inherently better; the choice depends on whether investors prioritise income components or prefer maximum growth potential without dividend considerations.

What are common misconceptions when comparing ETFs?

One misconception is that higher dividend yield always means better returns - FBOT's 0.40% vs FDTX's 0.00% yields show different strategies, not better performance. Another myth is that lower expense ratios guarantee better results; both funds share the same 0.50% fee. Recent performance doesn't predict future results, especially for funds with only six years' history since inception. Investors often overlook that sector focus affects volatility risk, and concentrated holdings (like FDTX's technology tilt) carry different risk profiles.

FBOT vs FDTX

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare FBOT and FDTX: Fidelity Covington Disruptive Automation and Disruptive Tech. Examine fees, holdings and dividends. Track performance. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FBOT

Metric

FDTX

0.50%

Expense Ratio

0.50%

0.40%

Dividend Yield

0.00%

$209.46M

Net Assets

$294.78M

55

Holdings

51

Apr 16, 2020

Inception Date

Apr 16, 2020

–

Index Tracked

–

Global Large-Stock Growth

Fund Category

Technology

Both funds charge the same annual fee.

Shared Top Holdings

Holding	FBOT	FDTX
NVDANVIDIA Corporation	5.01%	4.60%
PLTRPalantir Technologies Inc.	3.70%	5.14%
GOOGAlphabet Inc.	2.99%	3.20%
AMZNAmazon.com, Inc.	2.14%	3.64%

Discover More Comparisons

FBOT vs FTEC

Compare FBOT and FTEC on expense ratios, holdings, dividends, and net assets. Review key data points to understand how these two Fidelity ETFs differ.

Investment Analysis

FBOT

Pros

FBOT features a moderate expense ratio of 0.50% and manages net assets of $209 million.
FBOT offers a dividend yield of 0.40%, providing a small income component within its growth strategy.
FBOT includes diversified large-cap holdings such as Deere and Teradyne alongside high-growth automation names.

Considerations

The specific benchmark index tracked by FBOT is currently not available, limiting transparency on its methodology.
Sector weightings for FBOT are not available, hindering clear assessment of its exposure to specific industries.
Inception of FBOT in April 2020 means the fund lacks a long track record for comparison.

FDTX

Pros

FDTX offers exposure to a concentrated set of technology and semiconductors like Micron and Marvell.
FDTX manages $295 million in net assets, providing a larger scale than the automation-focused counterpart.
FDTX targets disruptive technology themes through significant holdings in global firms like TSMC and Palo Alto Networks.

Considerations

FDTX pays no dividends, resulting in a 0.00% yield for investors seeking income.
The fund’s specific tracked index is not available, making its benchmark methodology unclear to potential investors.
Sector weights for FDTX are not available, obscuring the precise level of concentrated technology risk taken.

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About FBOT and FDTX

FBOT (FBOT)

FBOT is a listed ticker for which the publicly available company name or profile was not provided in the brief. That means an investor should treat this as a placeholder symbol and start by verifying the issuer — checking exchange listings, company filings (annual and quarterly reports), and regulatory disclosures. Key things to look for: the business model, revenue and profit trends, cash flow, balance-sheet strength, management experience, and recent news or corporate actions. Liquidity and average daily volume matter for execution and spread. As with any single-stock exposure, consider how FBOT would fit your time horizon, diversification and risk tolerance. Historical price moves do not predict the future; returns are not guaranteed and values can fall as well as rise. This summary is educational only and not personal investment advice — consult official filings and, if needed, a qualified adviser before making decisions.

FDTX (FDTX)

The Fidelity Covington Trust Disruptive Tech ETF is an exchange-traded fund focused on the technology sector, specifically targeting companies involved in disruptive technologies. With a total of 51 holdings, the fund provides investors with diversified exposure to firms that are potentially transforming industries through innovation. The ETF has a moderate expense ratio of 0.50%, which is a factor to consider alongside its investment potential. It's important to note that this fund does not pay dividends, which may appeal to investors seeking capital growth rather than regular income. As with any investment in the technology sector, the value of the fund can fluctuate significantly due to market conditions, technological advancements, and regulatory changes. Investors should weigh these factors and consider their own risk tolerance before investing. This fund offers a way to participate in the growth of disruptive technologies, but it also carries the inherent risks associated with the sector.

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Automation Stocks (Efficiency Wave) Investment Theme

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FBOT vs FDTX

Fund Snapshot

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FBOT vs FTEC

Investment Analysis

FBOT

Pros

Considerations

FDTX

Pros

Considerations

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About FBOT and FDTX

Which Baskets Do They Appear In?

Automation Stocks (Efficiency Wave) Investment Theme

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Frequently asked questions

What are disruptive technology ETFs and how do they compare?

How do expense ratios affect long-term ETF investing?

What is an ETF's inception date and why does it matter?

How do holdings differ between automation and technology ETFs?

What is ETF diversification and how do these funds provide it?

How do dividend yields compare between these ETFs?

How do these funds respond to different market cycles?

What does fund size mean for investors?

How do you compare top holdings for overlap?

How do investors begin with ETF comparisons?

Which fund is best for growth vs income investors?

What are common misconceptions when comparing ETFs?

Fund Snapshot

Discover More Comparisons

FBOT vs FTEC

About FBOT and FDTX

Which Baskets Do They Appear In?

Automation Stocks (Efficiency Wave) Investment Theme

Rise Of The Machines: The Robotics Revolution

Which Baskets Do They Appear In?

Automation Stocks (Efficiency Wave) Investment Theme

Rise Of The Machines: The Robotics Revolution

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The Corporate Efficiency Revolution: Backing the Automation Winners

Rise Of The Machines: The Robotics Revolution

Related Market Insights

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