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FTEC vs SKYY
Which ETF would AI Choose? Fidelity MSCI Information Technology Index ETF (FTEC) vs. First Trust Cloud Computing ETF (SKYY)
Key Takeaways
- FTEC offers broad exposure to the U.S. information technology sector through a market-cap-weighted index, while SKYY targets a narrower cloud computing theme with a modified equal-weight approach.
- FTEC maintains a significantly lower expense ratio of 0.08% compared to SKYY’s 0.60%, enhancing long-term cost efficiency for investors.
- FTEC holds approximately 290–295 securities with heavy concentration in mega-cap names such as NVDA, AAPL, and MSFT, whereas SKYY limits holdings to around 65 companies focused on cloud infrastructure and services.
- Sector allocation in FTEC is nearly 100% information technology, while SKYY emphasizes cloud-specific subsectors with additional exposure to select communication services and consumer cyclical names.
- FTEC provides greater diversification within the broader technology space, whereas SKYY delivers targeted thematic exposure that may exhibit higher volatility tied to cloud adoption cycles.
- Both ETFs are passively managed with quarterly rebalancing, but FTEC’s larger asset base supports superior liquidity for institutional and retail investors alike.
Introduction
Investors seeking technology exposure often evaluate broad sector funds against specialized thematic vehicles. FTEC and SKYY both provide access to high-growth areas within information technology yet pursue distinct strategies. FTEC delivers comprehensive coverage of the U.S. information technology sector, while SKYY concentrates on cloud computing companies. The comparison helps investors determine whether broad diversification or targeted thematic positioning better aligns with their objectives amid ongoing digital transformation and artificial intelligence adoption.
Fidelity MSCI Information Technology Index ETF (FTEC) Overview
FTEC is a passively managed exchange-traded fund that seeks to track the MSCI USA IMI Information Technology 25/50 Index. The fund holds approximately 290–295 securities and employs market-capitalization weighting. Top holdings typically include NVDA, AAPL, MSFT, AVGO, and MU, which together account for a substantial portion of assets. The portfolio allocates nearly all assets to the information technology sector, with minimal exposure to other areas. Its expense ratio stands at 0.08%. The fund rebalances periodically to maintain alignment with the underlying index and benefits from strong liquidity due to its size and trading volume.
First Trust Cloud Computing ETF (SKYY) Overview
SKYY is a passively managed exchange-traded fund designed to track the ISE Cloud Computing Index. The fund typically holds around 65 securities and applies a modified weighting methodology that emphasizes companies with significant cloud operations. Representative holdings include MSFT, GOOGL, IBM, NTNX, and ANET. The portfolio focuses on cloud infrastructure, platforms, and services, resulting in primary allocation to technology with smaller weights in communication services and consumer cyclicals. Its expense ratio is 0.60%. The fund rebalances according to index rules to reflect changes in cloud computing relevance.
Industry and Thematic Backdrop
The information technology sector continues to benefit from sustained demand for digital infrastructure, artificial intelligence applications, and enterprise cloud migration. Cloud computing remains a core growth driver as businesses modernize legacy systems and adopt hybrid environments. Regulatory scrutiny around data privacy and competition in technology markets represents an ongoing consideration. Macroeconomic factors such as interest rate trajectories and corporate capital expenditure patterns influence capital flows into both broad technology and cloud-specific strategies. These dynamics support long-term structural tailwinds while introducing periodic volatility tied to earnings cycles and valuation adjustments.
Performance and Positioning Comparison
Over recent market cycles, FTEC has delivered returns closely aligned with the broader technology sector, benefiting from strength in semiconductor and hardware leaders. SKYY has shown sensitivity to cloud spending trends, with performance influenced by enterprise adoption rates and competitive positioning among cloud providers. In periods of sector rotation favoring large-cap technology, FTEC’s concentration in mega-cap names has supported relative stability. During phases emphasizing specialized software and infrastructure, SKYY’s thematic focus has offered differentiated participation. Volatility profiles differ, with SKYY generally exhibiting greater sensitivity to shifts in cloud-related sentiment compared to the more diversified FTEC.
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. Investors comparing technology-focused ETFs may find the tool useful for refining screening criteria around sector exposure and volatility characteristics.
Tickeron AI Verdict
Based on observable structural factors including lower expense ratio, broader diversification across the information technology sector, and greater liquidity, Tickeron’s AI would currently assign a higher probability of favoring FTEC for investors seeking core technology exposure. SKYY offers compelling thematic access to cloud computing but carries higher costs and more concentrated risk. Final selection depends on individual risk tolerance and portfolio objectives.
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 SKYY 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 Oscillator 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%.
Momentum Indicator for SKYY turns positive, indicating new upward trend
SKYY saw its Momentum Indicator move above the 0 level on October 28, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In 77 of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +1.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where SKYY advanced for three days, in 313 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
SKYY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 215 of 226 cases where SKYY 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 10-day RSI Indicator for SKYY moved out of overbought territory on October 12, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 35 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 85%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 54 of 60 cases where SKYY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 90%.
The Moving Average Convergence Divergence Histogram (MACD) for SKYY turned negative on October 30, 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 49 similar instances when the indicator turned negative. In 44 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
SKYY moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SKYY 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 88%.
| FTEC | SKYY | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 79% | 4 days ago 85% |
| Stochastic ODDS (%) | 4 days ago 80% | 4 days ago 90% |
| Momentum ODDS (%) | 4 days ago 86% | 4 days ago 90% |
| MACD ODDS (%) | 4 days ago 84% | 4 days ago 90% |
| TrendWeek ODDS (%) | 4 days ago 82% | 4 days ago 86% |
| TrendMonth ODDS (%) | 4 days ago 87% | 4 days ago 85% |
| Advances ODDS (%) | 6 days ago 88% | 6 days ago 88% |
| Declines ODDS (%) | 4 days ago 83% | 4 days ago 88% |
| BollingerBands ODDS (%) | 4 days ago 90% | 4 days ago 90% |
| Aroon ODDS (%) | 4 days ago 90% | 4 days ago 90% |
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SKYY and
Correlation & Price change
A.I.dvisor indicates that over the last year, SKYY has been closely correlated with RBRK. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if SKYY jumps, then RBRK could also see price increases.
| Ticker / NAME | Correlation To SKYY | 1D Price Change % | ||
|---|---|---|---|---|
| SKYY | 100% | -4.57% | ||
| RBRK - SKYY | 72% Closely correlated | -7.09% | ||
| CRWD - SKYY | 70% Closely correlated | -4.10% | ||
| TWLO - SKYY | 68% Closely correlated | -15.24% | ||
| ESTC - SKYY | 67% Closely correlated | -5.83% | ||
| FIVN - SKYY | 67% Closely correlated | -2.86% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| LQ | 23.94 | 0.01 | +0.04% |
| Simplify Tax Aware Alternatives ETF (LQ) | |||
| DTD | 96.84 | -0.49 | -0.50% |
| WisdomTree U.S. Total Dividend Fund (DTD) | |||
| RSSY | 26.40 | -0.17 | -0.64% |
| Return Stacked U.S. Stocks & Futures Yield ETF | |||
| FMTL | 31.16 | -1.20 | -3.69% |
| First Trust Indxx Critical Metals ETF (FMTL) | |||
| YMAX | 6.87 | -0.27 | -3.78% |
| YieldMax Universe Fund of Option Income ETFs (YMAX) | |||