What distinguishes a Consumer Discretionary fund from an Information Tech fund in ETF comparisons?

A Consumer Discretionary ETF, such as FDIS, tracks companies producing non-essential goods and services, including retail, e-commerce, and entertainment. In contrast, an Information Tech ETF, like FTEC, focuses on technology hardware, software, and services providers. The core distinction lies in the economic sector they represent, leading to different drivers of performance and sensitivity to consumer spending versus technological innovation cycles.

Why is the index tracking method relevant when both FDIS and FTEC are Fidelity ETFs?

Index tracking defines how an ETF constructs its portfolio to mirror a benchmark. While both FDIS and FTEC are managed by Fidelity and launched in October 2013, the provided data notes their tracked indices are 'not available'. This lack of transparency can make it harder for investors to fully understand the specific rules governing which companies are included and how weights are determined, affecting predictability of composition changes.

What does 'sector weights' being 'not available' imply for these ETFs?

Sector weights detail how assets are distributed across sub-industries, such as automobiles versus retail within consumer discretionary. For FDIS and FTEC, sector weights are listed as 'not available'. This means investors cannot easily assess diversification within each fund beyond the top ten holdings. Consequently, understanding exposure to specific sub-themes, like semiconductors in technology or online services in retail, requires relying solely on the disclosed top holdings rather than a comprehensive sector breakdown.

How do the expense ratios of FDIS and FTEC compare?

Both FDIS and FTEC charge an identical expense ratio of 0.08%. This low fee structure means investors in either fund pay eight basis points annually relative to their investment. Since the costs are the same, fee differentiation does not influence the choice between these two ETFs. Investors looking to compare these funds must therefore focus on their underlying holdings, sector focus, and dividend yields rather than cost efficiency, as both are equally affordable from a fee perspective.

What does the difference in net assets mean for FDIS and FTEC?

FTEC holds $21.3 billion in net assets, significantly larger than FDIS's $1.7 billion. A larger asset base often correlates with higher trading volumes and better liquidity, potentially making it easier to buy or sell shares without impacting the price. While FDIS's smaller size may not be an issue for long-term holders, it could result in wider bid-ask spreads during volatile market conditions compared to the more heavily traded and larger FTEC.

Are there overlapping holdings between the top ten positions of FDIS and FTEC?

According to the data, there are none among the listed top holdings. FDIS is heavily weighted toward Amazon (22.68%) and Tesla (16.09%), while FTEC focuses on Nvidia (17.49%), Apple (16.69%), and Microsoft (11.22%). This absence of overlap indicates that combining these funds would provide diversified exposure across distinct market segments, ensuring that performance drivers for retail and e-commerce leaders do not directly mirror those of technology hardware and software giants.

How do dividend yields differ between FDIS and FTEC?

FDIS offers a dividend yield of 0.79%, whereas FTEC provides a yield of 0.37%. Both yields are relatively modest, reflecting the growth-oriented nature of their sectors, where companies often reinvest earnings rather than distributing them as dividends. Investors prioritising income might slightly prefer FDIS, but the 0.42 percentage point difference is minor and should not overshadow the primary capital appreciation objectives associated with these sectors.

How does concentration in top holdings affect these ETFs?

Both funds exhibit high concentration in their top holdings. FDIS relies on Amazon (22.68%) and Tesla (16.09%), totaling nearly 39% in two positions. FTEC is similarly concentrated with Nvidia (17.49%), Apple (16.69%), and Microsoft (11.22%). This means the performance of these ETFs is significantly influenced by the stock price movements of a few large-cap companies, potentially increasing volatility compared to broader, more diversified market indices.

Why do both funds have similar inception dates and issuers?

FDIS and FTEC were both launched on 21 October 2013 by Fidelity. This shared inception date indicates they were likely introduced as part of a broad range of Fidelity MSCI sector-specific ETFs aimed at offering affordable, passive exposure to various market segments simultaneously. Their longevity provides multi-year operating histories under the same management, lending operational familiarity, though their sector mandates remain distinct for consumer discretionary and information technology.

What should beginners consider regarding 'tracked index' unavailability?

When an ETF's tracked index is not available, beginners should be cautious as they cannot verify the precise selection criteria for holdings. For FDIS and FTEC, this lack of transparency means you rely on the disclosed top holdings and the fund name's sector implication. It is essential to acknowledge this gap in methodology detail when assessing how these funds might react to changes in their specific industries compared to other ETFs that fully publish their benchmark rules.

Is there a financial advice disclaimer for comparing ETFs like FDIS and FTEC?

Yes. This content is for educational purposes only and does not constitute financial advice. When comparing ETFs such as FDIS and FTEC, it is important to consult with a qualified financial advisor who can assess your individual financial situation, risk tolerance, and investment goals before making any investment decisions or portfolio adjustments.

FDIS vs FTEC

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

Compare Fidelity MSCI Consumer Discretionary ETF (FDIS) and Fidelity MSCI Information Tech ETF (FTEC). Review fees, holdings, dividends and how each fund tracks its market. FDIS focuses on consumer cyclical stocks while FTEC targets information technology. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FDIS

Metric

FTEC

0.08%

Expense Ratio

0.08%

0.79%

Dividend Yield

0.37%

$1.69B

Net Assets

$21.25B

246

Holdings

298

Oct 21, 2013

Inception Date

Oct 21, 2013

–

Index Tracked

–

Consumer Cyclical

Fund Category

Technology

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

FDIS

Pros

FDIS charges a low 0.08% expense ratio and holds $1.7 billion in net assets.
Dividend yield of 0.79% provides modest income alongside consumer-discretionary capital exposure.
Fidelity’s long track record managing this ETF since October 2013 lends operational familiarity.

Considerations

AMZN at 22.68% and TSLA at 16.09% create substantial concentration in two holdings.
Tracked index is not available, limiting transparency about benchmark methodology.
Sector weights are not available, hindering clear assessment of sub-industry diversification within consumer discretionary.

FTEC

Pros

FTEC also charges a low 0.08% expense ratio with $21.3 billion in net assets.
Larger asset base may improve liquidity for investors seeking technology sector exposure.
Inception since October 2013 indicates a multi-year operating history under Fidelity management.

Considerations

NVDA at 17.49%, AAPL at 16.69%, and MSFT at 11.22% form highly concentrated top holdings.
Dividend yield is modest at 0.37%, making income less prominent than growth exposure.
Tracked index is not available, obscuring the precise methodology behind portfolio construction.

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About FDIS and FTEC

FDIS (FDIS)

FDIS is an exchange-traded fund from Fidelity that seeks to provide exposure to the US consumer discretionary sector by tracking a broad MSCI consumer discretionary index. It holds a diversified basket of companies that sell goods and services tied to consumer spending — from retailers, restaurants and leisure companies to automotive and household discretionary brands. Investors should know this ETF concentrates sector risk: performance is closely linked to consumer confidence, employment and economic cycles, so returns can be more volatile than broad-market funds. FDIS can be useful for adding focused growth exposure or expressing a view on consumer trends, but it does not offer the broad diversification of a total-market ETF. Costs, tracking error and portfolio turnover matter — check the fund prospectus for the current expense ratio, dividend policy and largest holdings. This information is educational, not personal advice; investors should consider their risk tolerance, investment horizon and seek professional guidance if unsure.

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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FDIS vs FTEC

Fund Snapshot