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FTEC vs PSI
Which ETF would AI Choose? Fidelity MSCI Information Technology Index ETF (FTEC) vs. Invesco Semiconductors ETF (PSI)
Key Takeaways
- FTEC provides broad exposure to the U.S. information technology sector through a passive replication of the MSCI USA IMI Information Technology 25/50 Index, while PSI targets a narrower universe of semiconductor companies using a quantitative, multi-factor selection process.
- FTEC holds approximately 295 securities with an expense ratio of 0.08%, offering cost-efficient diversification across software, hardware, and services; PSI maintains roughly 30 holdings with a higher expense ratio of 0.55%, emphasizing concentrated semiconductor exposure.
- Top holdings in FTEC include large-cap leaders such as NVDA, AAPL, and MSFT, resulting in significant mega-cap concentration; PSI reduces mega-cap dominance through tiered weighting and includes mid- and small-cap semiconductor firms.
- Both ETFs operate as passive vehicles but differ in strategy: FTEC follows a market-capitalization approach within information technology, whereas PSI employs a proprietary Intellidex methodology focused on risk factors, momentum, and valuation, with quarterly rebalancing.
- FTEC delivers lower-cost access to the broader technology theme, while PSI offers higher-risk, higher-reward positioning within the semiconductor subsector, which is more sensitive to supply-chain dynamics, capital expenditure cycles, and trade policies.
- Investors seeking broad sector representation may prefer FTEC's diversification and lower fees, whereas those targeting semiconductor-specific growth opportunities may consider PSI despite its elevated costs and concentration risk.
Introduction
Exchange-traded funds (ETFs) focused on technology and semiconductors have attracted sustained investor interest amid ongoing digital transformation and artificial intelligence adoption. FTEC and PSI do not compete directly as identical products; instead, they provide differentiated exposure within the technology space. FTEC offers comprehensive coverage of the information technology sector, while PSI concentrates on semiconductors. This comparison highlights structural distinctions that help investors align portfolios with specific risk tolerances and thematic objectives in the current market environment.
Fidelity MSCI Information Technology Index ETF (FTEC) Overview
FTEC tracks the MSCI USA IMI Information Technology 25/50 Index, which measures the performance of U.S. companies classified in the information technology sector according to the Global Industry Classification Standard (GICS). The fund employs passive replication and holds approximately 295 securities. Top holdings typically feature NVDA, AAPL, MSFT, AVGO, and MU, with the top ten positions accounting for a substantial portion of assets. Sector allocation is concentrated entirely within information technology. The expense ratio stands at 0.08%, and the fund is non-diversified. Rebalancing occurs in line with index changes, supporting low turnover and cost efficiency.
Invesco Semiconductors ETF (PSI) Overview
PSI tracks the Dynamic Semiconductor Intellidex Index, which selects and weights approximately 30 U.S. semiconductor companies using a proprietary quantitative model that evaluates price momentum, earnings momentum, quality, management action, and value. The fund is passively managed but applies a rules-based, multi-factor approach that reduces mega-cap concentration and incorporates mid- and small-cap names. Holdings generally include semiconductor manufacturers and related firms, with quarterly rebalancing and reconstitution in February, May, August, and November. The expense ratio is 0.55%. PSI is non-diversified and focuses exclusively on the semiconductor industry within the broader technology sector.
Industry and Thematic Backdrop
The information technology sector, particularly semiconductors, continues to benefit from structural demand drivers including artificial intelligence infrastructure buildout, data center expansion, and electrification trends. Capital expenditures by technology leaders remain elevated, supporting semiconductor supply chains. Macroeconomic factors such as interest rate expectations, global trade policies, and inventory cycles influence both broad technology and semiconductor performance. Regulatory developments around export controls and domestic manufacturing incentives add complexity to the environment. These dynamics affect capital flows into technology-related ETFs and underscore the importance of distinguishing between broad sector exposure and subsector concentration.
Performance and Positioning Comparison
In recent market cycles, FTEC has delivered exposure aligned with the overall information technology sector, benefiting from diversified holdings across software, hardware, and services. PSI has exhibited greater volatility due to its concentrated semiconductor focus and sensitivity to earnings cycles of chipmakers and equipment providers. Relative positioning shows FTEC providing more stable participation in broad technology advances, while PSI offers amplified exposure to semiconductor-specific momentum and supply-demand imbalances. Differences in expense ratios and holding counts contribute to distinct risk-return profiles over extended periods, with FTEC emphasizing cost efficiency and PSI emphasizing thematic precision within semiconductors.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to uncover additional opportunities aligned with your investment criteria.
Tickeron AI Verdict
Based on structural strength, cost efficiency, and diversification profile, Tickeron’s AI would currently assign a higher probability of favorability to FTEC. The lower expense ratio, broader holdings base, and comprehensive information technology coverage provide a more balanced risk exposure relative to sector momentum. PSI’s concentrated semiconductor strategy and higher costs introduce elevated volatility that may suit specialized mandates but reduce its relative appeal in a probabilistic assessment of durable positioning.
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.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FTEC is a Hold and PSI is a Hold.
FTEC in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 16, 2026
FTEC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 38 of 39 cases where FTEC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where FTEC's RSI Indicator exited the oversold zone, 19 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
Following a +2.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where FTEC advanced for three days, in 340 of 388 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
The Aroon Indicator entered an Uptrend today. In 304 of 327 cases where FTEC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 52 of 65 cases where FTEC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 80%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FTEC as a result. In 73 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 86%.
The Moving Average Convergence Divergence Histogram (MACD) for FTEC turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 42 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 84%.
FTEC moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FTEC crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 71%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FTEC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
PSI's Indicator enters downward trend
The Aroon Indicator for PSI entered a downward trend on October 30, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 120 similar instances where the Aroon Indicator formed such a pattern. In 110 of the 120 cases the stock moved lower. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 60 of 68 cases where PSI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 88%.
The Momentum Indicator moved below the 0 level on October 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PSI as a result. In 79 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 85%.
The Moving Average Convergence Divergence Histogram (MACD) for PSI turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In 48 of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at 89%.
PSI moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PSI crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 15 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PSI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PSI's RSI Oscillator exited the oversold zone, 21 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
Following a +7.58% 3-day Advance, the price is estimated to grow further. Considering data from situations where PSI advanced for three days, in 313 of 352 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
PSI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
| FTEC | PSI | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 79% | 3 days ago 90% |
| Stochastic ODDS (%) | 3 days ago 80% | 3 days ago 88% |
| Momentum ODDS (%) | 3 days ago 86% | 3 days ago 85% |
| MACD ODDS (%) | 3 days ago 84% | 3 days ago 89% |
| TrendWeek ODDS (%) | 3 days ago 82% | 3 days ago 86% |
| TrendMonth ODDS (%) | 3 days ago 87% | 3 days ago 86% |
| Advances ODDS (%) | 5 days ago 88% | 5 days ago 89% |
| Declines ODDS (%) | 3 days ago 83% | 3 days ago 84% |
| BollingerBands ODDS (%) | 3 days ago 90% | 3 days ago 90% |
| Aroon ODDS (%) | 3 days ago 90% | 3 days ago 90% |
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PSI and
Correlation & Price change
A.I.dvisor indicates that over the last year, PSI has been closely correlated with ONTO. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if PSI jumps, then ONTO could also see price increases.
| Ticker / NAME | Correlation To PSI | 1D Price Change % | ||
|---|---|---|---|---|
| PSI | 100% | -8.17% | ||
| ONTO - PSI | 88% Closely correlated | -9.16% | ||
| SYNA - PSI | 83% Closely correlated | -0.04% | ||
| UCTT - PSI | 82% Closely correlated | -9.12% | ||
| ACLS - PSI | 81% Closely correlated | -10.67% | ||
| GFS - PSI | 77% Closely correlated | -8.62% | ||
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