Fidelity's AI-Linked ETF Bets Big on Tech Giants

The Fidelity Fundamental Large Cap Growth ETF (CBOE:FFLG) is an actively managed fund that invests in large American growth companies. As of July 31, 2026, the fund had around $590 million in net assets and traded at $34.06 a share on September 23. The portfolio manager selects stocks based on fundamental research rather than tracking a published index.

The top holdings are clustered in semiconductors, internet platforms, and software. NVIDIA accounts for 16.24% of net assets, followed by Alphabet at 12.56%, Apple at 5.83%, Eli Lilly at 3.34%, Microsoft at 3.34%, Micron Technology at 3.29%, Broadcom at 3.19%, Amazon at 2.86%, Meta Platforms at 2.74%, and Taiwan Semiconductor at 2.06%. The fund also holds a small S&P 500 futures position to manage cash.

The 'fundamental' approach means the managers evaluate companies by looking at business quality, earnings prospects, competitive position, and valuation, then size positions by conviction. This results in a concentrated portfolio with a high weighting in technology names, which may move in step with the AI-and-semis trade.

The main risks are concentration and fees. With more than a quarter of assets in just two stocks, a bad stretch for NVIDIA or Alphabet would meaningfully drag on returns. Active management also introduces manager risk: the team may underperform the index in any given year, and the higher expense ratio compounds that gap over time.