As artificial intelligence and other technology disruptors draw the gaze of forward-thinking investors, it’s imperative not to disregard funds like the Fidelity Disruptive Technology ETF (FDTX), a portal to companies on the verge of reshaping industries.
Artificial intelligence serves as a prime example of the impact disruptive technology can have. In a recent accolade, FDTX was honored with the Best New U.S. Equity ETF award at the 2024 etf.com Awards, triumphing over competitors that spanned various investment focuses.
Transitioning from a mutual fund to an ETF format in June 2023, FDTX actively pursues long-term capital growth by investing in companies that bring novel and ground-breaking approaches to business. These organizations offer products and services that could potentially overhaul established industry practices.
Exploring FDTX’s Investment Approach
FDTX’s investment strategy encompasses a range of sectors, including big data, cybersecurity, software as a service (SaaS), consumer technologies, and e-commerce, supplemented by ride-share and cutting-edge hardware firms. The fund seeks out companies that could disrupt their markets through innovative business models, competitive pricing, and novel product delivery systems. These disruptors are poised to gain a strategic edge in their fields.
To identify these organizations, FDTX employs a rigorous fundamental analysis, scrutinizing financial stability, market position, and broader economic conditions. The ETF’s portfolio is diversified, containing both domestic and international companies, as well as a mix of growth and value stocks.
Among the top investments within the fund are Nvidia (NVDA), Salesforce (CRM), and Taiwan Semiconductor Manufacturing (TSM), with respective portfolio weights of 6.72%, 5.44%, and 5.14% as of March 27, 2024.
Since its inception, FDTX has experienced a total return of 16.86% up to April 22, 2024, a testament to its strategic choices in the disruptive technology space.
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For additional insights and analyses, interested parties are invited to explore the ETF Investing Channel.
