How to Add AI Exposure With Fidelity Tech Funds

Which Fidelity fund gives me the most AI and semiconductor exposure?

FSPTX, the Fidelity Select Technology Portfolio, is the framework's designated fund for amplified exposure to AI, semiconductors, software, and cloud computing. But before you load up, understand what it actually is: an actively managed mutual fund, not a passive index fund. That distinction matters. It carries a 0.61% expense ratio—dramatically higher than the 0.015% you'd pay for FXAIX—and it's extraordinarily concentrated, with over 68% of the portfolio in just 10 holdings and roughly 22.5% in Nvidia alone.

This concentration is a double-edged sword. FSPTX can significantly outperform the broader market when tech is in favor, and significantly underperform when it isn't. That's exactly why the framework treats it differently from your core funds.

Should FSPTX be my main holding if I'm all-in on tech?

No—this is the single most important rule for aggressive tech investors. Under the Concentrated Funds as Small Positions, Not Foundations principle, FSPTX should only ever be a small satellite position layered on top of a diversified core. Even if you're convinced the AI buildout has years to run, betting your foundation on one actively managed, top-heavy fund exposes you to catastrophic downside if tech falls out of favor.

Remember: your S&P 500 core already gives you heavy tech exposure. Because of market value weighting, FXAIX is roughly 38% tech and about 39% concentrated in its top 10 holdings. FSPTX is an amplifier on top of that, not a replacement.

How do I size an FSPTX satellite position?

Start with the 120 Rule for your overall stock-bond split, then carve a small slice of your equity sleeve for FSPTX. Consider a 32-year-old aggressive investor bullish on AI: 120 − 32 = 88% stocks, 12% bonds. A sample allocation is 80% FXAIX (core), 8% FSPTX (satellite), and 12% FXNAX (bonds). Notice FSPTX is only 8% of the portfolio—small enough that a tech crash won't devastate you, but large enough to add meaningful upside if you're right.

Be honest with yourself about the 68% top-10 concentration and 22.5% Nvidia weighting. That's a meaningful, single-name-driven risk. If you're not comfortable with FSPTX potentially dropping far more than the S&P 500 in a bad tech year, size it smaller or skip it entirely.

Why not just buy more FXAIX for tech exposure?

FXAIX already gives you market-weight tech at a fraction of the cost. FSPTX only makes sense if you want to overweight tech beyond what the market assigns—an active bet that AI and semiconductors will outperform. If you don't hold that specific conviction, the cheaper, more diversified path is to simply increase your FXAIX position. The framework only recommends FSPTX for investors who are explicitly bullish on the tech buildout, not for anyone chasing recent returns.

What downside should I prepare for?

Prepare for sharp drawdowns that exceed the broader market. Because FSPTX is highly concentrated and actively managed, a semiconductor or AI selloff can hit it much harder than a diversified index fund. Also remember the Average Returns Are Not Annual Returns principle—even the broad market has negative years, and a concentrated tech fund amplifies that volatility. Keep your core diversified, keep FSPTX small, and don't let a strong recent run tempt you into oversizing it.

Next step: Run the 120 Rule for your age, set your FXAIX core and FXNAX bond sleeve, then add FSPTX as a small satellite (typically under 10%). Place all orders under Trade in Fidelity and re-evaluate your conviction—and the position size—at each five-year recalibration.