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Tech Defies Volatility in Fidelity’s Latest Sector ETF Flows

BY | ETF Database
11:20 am ET 07/31/26 | 3 VIEWS
The tech sector continues to garner the most attention when it comes to ETF flows. This trend was supported by Fidelity’s ETF flows report, which highlighted investor obsession with digital infrastructure and next-generation innovation. According to their latest sector-themed flows data, technology-focused strategies remain the prime interest for retail and institutional investors alike.Key Takeaways: Despite the market volatility and style rotations witnessed in June, technology-themed ETFs pulled in more net capital than all other sectors combined, signaling persistent investor confidence in digital infrastructure. Beyond tech, sector flows also strongly favored industrials, materials, and energy, highlighting robust underlying demand for physical assets, grid electrification, and manufacturing reshoring. Fidelity’s specialized thematic suite provides investors with targeted entry points into next-generation automation and disruptive software, while their broader sector ETFs capture the cyclical expansion. The Sector Flow LeaderboardDespite a bumpy macroeconomic backdrop and ongoing question marks surrounding the immediate monetization of the AI trade, tech-themed ETFs pulled in more capital than all other market sectors combined. This massive concentration of assets underscores a persistent, long-term confidence in technology as the economy’s primary structural growth engine. Those looking to capitalize on disruptive forces in tech, compelling options from Fidelity include the Fidelity Disruptive Automation ETF (FBOT B+) and the Fidelity Disruptive Technology ETF (FDTX B+). See More: Capitalize on Fintech Disruption With the Active FDFF While tech took top billing in the sector flows, others carved out their own spots atop the leaderboard. This includes flows in industrials, energy, and materials, reflecting strong underlying demand for tangible assets, electrification infrastructure, and global supply chain reshoring. To take advantage of the trend in industrials, consider exposure via the Fidelity MSCI Industrial Index ETF (FIDU ) and materials in the Fidelity MSCI Materials Index ETF (FMAT ). For broad energy exposure, consider the Fidelity MSCI Energy Index ETF (FENY A+) or the Fidelity Clean Energy ETF (FRNW B-) to take advantage of the global transition to alternative energy.Navigating the Road AheadFor market participants, the massive scale of these technology inflows raises an important tactical question regarding portfolio concentration: What’s ahead for tech in the second half of 2026? The tech sector has proven to be resilient, but high valuations and intense style rotations could mean that near-term volatility witnessed in June could occur again. That said, the key milestone for investors will be monitoring whether the tech-themed momentum can actively persist. On the other hand, if a broadening market will eventually push capital toward the rest of the cyclical field, take advantage of Fidelity ETFs in the aforementioned sectors outside of tech. For more news, information, and analysis, 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. 1274553.1.0

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