What is the difference between tracking an index versus a theme?

FTEC tracks the MSCI Information Technology Index, representing established large-cap tech firms across hardware, software and semiconductors. It is a passive strategy targeting a broad sector. In contrast, FBOT pursues the 'Disruptive Automation' theme, investing actively in companies involved in robotics and automation globally. It does not track a standard sector index. Instead, it selects stocks based on their potential to transform industries through automation technology, blending traditional industrial firms with modern tech companies.

Why does expense ratio matter for ETF investors?

The expense ratio is the annual fee charged by the fund to manage your assets. FTEC has a low expense ratio of 0.08%, while FBOT charges 0.50%. This 0.42 percentage point difference means investors in FBOT pay significantly more in fees relative to their investment size. Over long periods, higher fees can erode total returns, especially if the fund's active management does not outperform the market. Lower fees, like those of FTEC, generally benefit passive investors by retaining more of the fund's gross performance.

What is the impact of fund liquidity on trading?

Liquidity refers to how easily you can buy or sell shares without affecting the price. FTEC has net assets of $21.3 billion, indicating very high liquidity and likely tight bid-ask spreads for traders. FBOT has net assets of $209 million, which is smaller. While generally tradable, funds with lower net assets can sometimes experience wider spreads or difficulty filling very large orders without impacting the price. For most retail investors, both should be tradable, but FTEC offers a larger, more liquid market.

How do the top holdings compare between FBOT and FTEC?

The funds have very different primary exposures. FTEC is heavily concentrated in the largest US tech companies, with NVDA (17.49%), AAPL (16.69%), and MSFT (11.22%) comprising a major portion of the fund. FBOT's largest holding is DE (5.66%), followed by NVDA (5.01%) and TER (4.31%). While both hold NVDA and PLTR, FTEC is dominated by consumer tech and semiconductor giants, whereas FBOT balances industrials (like Deere and Emerson) with technology enablers to capture the broader automation theme across different sectors.

Which fund offers greater diversification within the technology sector?

FTEC focuses on the established Information Technology sector. However, its top three holdings (NVDA, AAPL, MSFT) make up roughly 45% of the fund, creating significant concentration risk. FBOT diversifies across 'industrials' and 'technology' sectors through its automation theme. Its largest position is Deere at 5.66%, ensuring no single company dominates the portfolio. If you want pure-play technology exposure, FTEC is the choice, though with higher individual company weight. If you prefer exposure to automation trends across traditional and modern industries, FBOT provides a more balanced company weight.

How do dividend yields differ between these two ETFs?

Both funds provide relatively low income generation. FBOT has a dividend yield of 0.40%, while FTEC yields 0.37%. The difference of 0.03% is negligible and suggests both are growth-oriented rather than income funds. Neither fund is suitable for investors prioritising regular cash flow. The yields reflect the nature of their underlying holdings; FBOT's industrial holdings may pay dividends, while FTEC's tech holdings often prioritise share buybacks or reinvestment over high distributions.

Does the fund's age affect its track record and reliability?

FTEC was launched in October 2013, providing a long track record of tracking performance through different market cycles. FBOT was launched in April 2020. As an actively managed thematic fund, FBOT has a much shorter history. Investors comparing the two must consider that FTEC's performance is a proven reflection of the tech sector, whereas FBOT's long-term consistency in capturing the automation theme is still being demonstrated in various economic conditions.

What are the risks associated with active thematic investing in FBOT?

FBOT is an active thematic ETF targeting automation. This involves manager risk—selecting the right companies that will succeed in this evolving field. With limited track record and a smaller asset base, it is less transparent than an index fund. Investors are exposed to companies like PLTR and BE, which may carry higher valuation risks compared to established tech giants. The focus is on future growth potential, which can be volatile and dependent on specific industry trends rather than broad market movements.

How does market concentration affect FTEC's performance?

FTEC tracks the Information Technology sector, which is inherently volatile and cyclical. Its performance is heavily tied to the stock prices of a few mega-cap companies like Apple and NVIDIA. If the tech sector underperforms the broader market due to economic downturns or valuation compression, FTEC will likely mirror that decline. This concentration means investors are betting specifically on technology hardware and software rather than the general economy.

Can an investor hold both FBOT and FTEC?

Yes, an investor could hold both. FTEC provides broad exposure to established technology sector leaders, while FBOT offers targeted exposure to the industrial and software automation theme. There is some overlap in holdings such as NVDA and PLTR, but their role differs in each fund: they are major index components in FTEC but part of a broader thematic selection in FBOT. Holding both would allow for a portfolio that captures traditional tech dominance alongside the automation industry trend.

Is there an educational disclaimer for this comparison?

This content is educational only and does not constitute financial advice. Past performance of FTEC or FBOT does not guarantee future results. Investors should verify data through official fund documents, as inception dates, expense ratios, and holdings can change over time. Consider your own risk tolerance, investment goals, and liquidity needs before making decisions. Always do your own research or consult a qualified financial adviser for personalised guidance tailored to your circumstances.

FBOT vs FTEC

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

Compare FBOT (Fidelity Covington Disruptive Automation ETF) and FTEC (Fidelity MSCI Information Tech ETF). This page details expense ratios, net assets, dividend yields, and top holdings to help you understand how each fund tracks its market. Educational content, not financial advice.

Compare FBOT (Fidelity Covington Disruptive Automation ETF) and FTEC (Fidelity MSCI Information Tech ETF). This page details expense ratios, net assets, dividend yields, and top holdings to help you u...

Fund Snapshot

Key Fund Metrics

FBOT

Metric

FTEC

0.50%

Expense Ratio

0.08%

0.40%

Dividend Yield

0.37%

$209.46M

Net Assets

$21.25B

55

Holdings

298

Apr 16, 2020

Inception Date

Oct 21, 2013

–

Index Tracked

–

Global Large-Stock Growth

Fund Category

Technology

FTEC costs about $42.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FBOT	FTEC
NVDANVIDIA Corporation	5.01%	17.49%
PLTRPalantir Technologies Inc.	3.70%	1.51%

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Investment Analysis

FBOT

Pros

The fund targets disruptive automation themes with a modest 0.50 per cent expense ratio.
It holds diversified automation companies with no single position exceeding 5.66 per cent.
Investors gain exposure to emerging robotics and software trends without direct company ownership.

Considerations

The net assets stand at only 209 million dollars, potentially affecting long term liquidity.
A low dividend yield of 0.40 per cent limits income generation for total return.
The inception date of April 2020 means limited track record for active management evaluation.

FTEC

Pros

The fund tracks the technology sector with a low 0.08 per cent expense ratio.
Net assets of 21.3 billion dollars suggest strong liquidity and trading volume for investors.
The inception date of October 2013 provides a long history of sector tracking performance.

Considerations

Holding 17.49 per cent in NVDA creates significant concentration risk for the portfolio.
The technology sector carries inherent volatility, which is reflected in its 0.37 per cent yield.
Top ten holdings dominate exposure, limiting diversification across the broader technology industry.

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About FBOT and FTEC

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.

FTEC (FTEC)

The Fidelity MSCI Information Tech ETF offers investors a cost-effective way to gain exposure to the U.S. technology sector. With an expense ratio of just 0.08%, this fund tracks a broad index of American companies involved in software, hardware, and services. Holding 298 different stocks, it provides diversified access to the sector's largest players as well as smaller emerging firms. Since its inception in October 2013, the fund has amassed substantial assets, currently exceeding USD 21 billion. Investors should note that while the fund offers low fees and wide coverage, its performance is directly tied to the technology sector's cyclical nature and growth prospects. Like all investments, values can rise and fall.

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Amazon is executing its largest-ever layoff of corporate staff, aiming to reduce bureaucracy and enhance operational efficiency. This major restructuring highlights a potential industry-wide shift, creating investment opportunities in companies that provide automation and productivity-boosting technologies.

Published: 26 January 2026

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FBOT vs FTEC

Fund Snapshot