Explore Broad Tech Innovation Beyond the Magnificent Seven

ETF Investing Content Hub Explore Broad Tech Innovation Beyond the Magnificent Seven Ben Hernandez September 1, 2026 While large-cap technology companies, including the Magnificent Seven, often account for a substantial share of market-cap weighted index allocations, investors may consider a range of opportunities across the broader market to align with their investment objectives. For example, the Fidelity Disruptive Technology ETF (FDTX) , which takes an actively managed approach that captures innovation across the wider technology ecosystem. Key Takeaways: FDTX uses active management to help investors capture technological innovation across the broader sector beyond mega-cap index heavyweights. The fund leans heavily into critical enablers and infrastructure providers, maintaining core allocations in key semiconductor, custom silicon, data storage, and networking companies. By combining bottom-up fundamental analysis with active portfolio flexibility, FDTX targets early-stage growth drivers across cybersecurity, SaaS, and next-generation hardware while managing concentration risk. See More: As AI Concentration Risk, Iran Loom, Try Volatility ETF FDLO A Broad-Based Approach to Tech Disruption Today’s technology is constantly evolving. That said, FDTX targets long-term capital growth by committing to investing specifically in companies that are at the forefront of ongoing technological shifts. Rather than relying solely on traditional sector classifications, FDTX portfolio managers focus on firms developing unconventional business models, new value networks, and advanced pricing or delivery mechanisms. The fund’s disruptive mandate spans critical sub-themes including software as a service (SaaS), big data, cybersecurity, next-generation hardware, and e-commerce. By evaluating both domestic and international issuers across growth and value categories, the fund aims to identify early-stage leaders before they reach mega-cap valuations. Portfolio Structure and Fundamental Selection One of the benefits of active management is its flexibility. Accordingly, Fidelity utilizes a dual-layered investment process that combines bottom-up fundamental analysis with quantitative portfolio construction. The fund’s managers evaluate an issuer’s financial health, competitive moat, and overarching industry trends to construct a high-conviction portfolio as opposed to simply buying an index. As of June 30, 2026, the fund maintains a focused stance. Its top 10 holdings representing 53.30% of total assets across 43 positions. While mega-caps remain present, the portfolio tilts heavily toward crucial infrastructure and hardware enablers. Semiconductor and custom silicon providers lead the top allocations. Infrastructure allocations are complemented by that of cybersecurity as well. By blending fundamental research with an active mandate that extends beyond standard benchmark leaders, FDTX offers investors an approach to accessing long-term technology and innovation opportunities across the market. For more news, information, and strategy, visit the ETF Investing Content Hub . Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles. 1279280.1.0 RELATED TOPICS active management active tech ETFs ETF Investing Content Hub FDTX Fidelity Fidelity Disruptive Technology ETF Fidelity Investments Mag 7 Alternatives Marvell Technology Semiconductor Stocks Earn free CE credits and discover new strategies