FTEC vs HACK

Key Takeaways

• FTEC offers broad, low-cost passive exposure to the entire U.S. information technology sector through the MSCI USA IMI Information Technology Index, while HACK provides targeted thematic exposure to cybersecurity companies via the ISE Cyber Security Select Index.
• FTEC maintains approximately 286 holdings with heavy concentration in mega-cap names such as NVIDIA Corporation (NVDA), Apple Inc. (AAPL), and Microsoft Corporation (MSFT), whereas HACK holds roughly 24 securities focused on cybersecurity specialists including Palo Alto Networks Inc. (PANW) and CrowdStrike Holdings Inc. (CRWD).
• The expense ratio for FTEC stands at 0.08%, significantly lower than HACK’s 0.60%, reflecting the cost efficiency of broad market-cap indexing versus specialized thematic strategies.
• FTEC delivers diversified technology sector allocation with meaningful semiconductor and software weights, while HACK concentrates risk in cybersecurity infrastructure, software, and services with limited overlap beyond select names such as Broadcom Inc. (AVGO) and Cisco Systems Inc. (CSCO).
• Both ETFs are passively managed and rebalanced according to their respective index methodologies, with FTEC exhibiting broader liquidity characteristics due to its larger asset base and HACK offering pure-play thematic positioning within the cybersecurity subsector.
• Structural differences position FTEC for general technology sector participation and HACK for investors seeking dedicated cybersecurity exposure, resulting in distinct risk-return profiles tied to broader tech cycles versus cybersecurity-specific demand drivers.

Introduction

Investors evaluating technology exposure often compare broad sector funds with specialized thematic products. The Fidelity MSCI Information Technology Index ETF (FTEC) and the Amplify Cybersecurity ETF (HACK) represent two distinct approaches within the technology space. FTEC provides comprehensive market-cap-weighted access to U.S. information technology companies, while HACK targets the cybersecurity subset. These ETFs do not compete directly but serve complementary roles for investors seeking either diversified technology participation or focused cybersecurity allocation aligned with evolving digital security needs.

Fidelity MSCI Information Technology Index ETF (FTEC) Overview

The Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed exchange-traded fund that seeks to track the performance of the MSCI USA IMI Information Technology Index before fees and expenses. The fund holds approximately 286 securities, providing diversified exposure across the U.S. information technology sector. Top holdings typically include NVIDIA Corporation (NVDA), Apple Inc. (AAPL), Microsoft Corporation (MSFT), Broadcom Inc. (AVGO), and Micron Technology Inc. (MU), with the top ten positions accounting for roughly 59% of assets. Sector allocation is nearly 100% information technology, with notable weights in semiconductors, software, and hardware. The expense ratio is 0.08%. As a market-cap-weighted index ETF, FTEC rebalances periodically to maintain alignment with index constituents and weights. The structure emphasizes liquidity and broad representation within the technology sector.

Amplify Cybersecurity ETF (HACK) Overview

The Amplify Cybersecurity ETF (HACK) is a passively managed thematic exchange-traded fund designed to track the ISE Cyber Security Select Index. The fund typically holds around 24 securities focused on companies engaged in cybersecurity technology and services. Top holdings often feature Palo Alto Networks Inc. (PANW), CrowdStrike Holdings Inc. (CRWD), Cisco Systems Inc. (CSCO), Fortinet Inc. (FTNT), and Broadcom Inc. (AVGO), with the top ten positions representing approximately 60% of assets. Allocation centers on technology services and electronic technology, emphasizing cybersecurity infrastructure and software solutions. The expense ratio is 0.60%. HACK follows a rules-based index methodology with periodic rebalancing to reflect changes in the cybersecurity universe. The concentrated structure targets pure-play and leading cybersecurity providers globally.

Industry and Thematic Backdrop

The information technology sector continues to benefit from sustained digital transformation, artificial intelligence adoption, and enterprise cloud migration. Cybersecurity has emerged as a critical subtheme amid rising data breach incidents, regulatory emphasis on data protection, and expanding attack surfaces from remote work and Internet of Things devices. Macroeconomic factors such as interest rate trajectories and corporate capital expenditure cycles influence both broad technology spending and dedicated security budgets. Regulatory developments around data privacy and critical infrastructure protection provide additional tailwinds for cybersecurity providers. Sector risks include valuation sensitivity to growth expectations, supply chain disruptions in semiconductors, and potential shifts in enterprise spending priorities during economic slowdowns.

Performance and Positioning Comparison

In recent market cycles, the Fidelity MSCI Information Technology Index ETF (FTEC) has reflected broader technology sector momentum driven by semiconductor and software leaders, exhibiting higher beta to overall equity markets and greater sensitivity to macroeconomic shifts. The Amplify Cybersecurity ETF (HACK) has shown distinct behavior tied to cybersecurity spending patterns, with potentially lower correlation to general technology moves during periods of targeted security demand. Relative positioning highlights FTEC’s broader diversification reducing single-subsector risk, while HACK’s concentrated holdings amplify exposure to cybersecurity-specific catalysts such as product cycles and threat landscape evolution. Volatility differences arise from HACK’s narrower focus versus FTEC’s wider technology representation.

AI Screener

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Tickeron AI Verdict

Based on observable structural factors, the Tickeron AI would currently assign a higher probability of favor to the Fidelity MSCI Information Technology Index ETF (FTEC) due to its substantially lower expense ratio, broader diversification across the technology sector, and alignment with sustained secular growth trends in semiconductors and software. HACK offers compelling thematic purity in cybersecurity but carries higher costs and concentration risk. The assessment reflects relative cost efficiency, diversification profile, and sector momentum consistency rather than short-term performance.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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