FTEC vs SMH
Fidelity MSCI Information Technology Index ETF vs VanEck Semiconductor ETF
Which is better, FTEC or SMH?
SMH has been ahead.
FTEC has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. FTEC is less concentrated, with 63.5% of the fund in its ten largest positions against 71.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FTEC | SMH |
|---|---|---|
| Expense Ratio | 0.08%Best | 0.35% |
| AUM | $21.3B | $74.1B |
| Dividend Yield | 0.35% | 0.20% |
| Holdings | 870 | 52 |
| YTD Return | +34.27% | +57.55%Best |
| 1Y Return | +34.64% | +73.64%Best |
| 3Y Return (annualized) | +34.30% | +58.55%Best |
| 5Y Return (annualized) | +20.93% | +36.83%Best |
| Volatility (annualized) | 19.6%Best | 26.8% |
| Max Drawdown | -35.0%Best | -45.3% |
| $10,000 over 5 years | $25,862 | $47,963Best |
| Top 10 Weight | 63.5%Best | 71.4% |
| Fund Family | Fidelity Investments (US) | VanEck |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Oct 21, 2013 | Dec 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 24, 2013 to Oct 13, 2026 (13 years).
FTEC vs SMH growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13 years both funds cover.
FTEC vs SMH Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is an ETF from Fidelity Investments (US) and VanEck Semiconductor ETF (SMH) is an ETF from VanEck. Over the past year FTEC returned +34.64% while SMH returned +73.64%. Year to date, FTEC is up 34.27% versus a gain of 57.55% for SMH.
Over three years, FTEC compounded at +34.30% per year against +58.55% for SMH; over five years the annualized figures are +20.93% and +36.83% respectively. Across the full 13-year window we track, SMH has the edge at +31.15% annualized vs +21.51%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMH has been the more volatile fund, with annualized monthly volatility of 26.8% compared with 19.6% for FTEC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.0% for FTEC and -45.3% for SMH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTEC charges 0.08% per year while SMH charges 0.35%. On a $10,000 position that is $8 vs $35 annually, a gap of $27 per year that compounds over a long holding period. On income, FTEC currently yields 0.35% against 0.20% for SMH.
Holdings Overlap
40.4% of FTEC's money is in holdings SMH also owns. 83.2% of SMH's money is in holdings FTEC also owns.
Most of SMH is already inside FTEC. Owning both mostly buys the same companies twice.
21 positions in common, counted across the 281 positions we hold weights for in FTEC and 25 in SMH, against full books of 870 and 52.
What only one of them owns
Our book lists 0 positions for SMH that do not appear in our book for FTEC (0.0% of the fund), and 225 for FTEC that do not appear in SMH (58.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FTEC | Weight in SMH | Difference |
|---|---|---|---|
| NVDANvidia Corp | 17.47% | 22.09% | 4.62% |
| AVGOBroadcom Inc | 4.40% | 5.83% | 1.43% |
| MUMicron Technology, Inc. | 4.25% | 5.54% | 1.29% |
| AMDAdvanced Micro Devices Inc | 3.24% | 5.78% | 2.54% |
| INTCIntel Corporation | 1.77% | 4.39% | 2.62% |
| LRCXLam Research Corp | 1.47% | 4.23% | 2.76% |
| AMATApplied Materials, Inc. | 1.43% | 4.19% | 2.76% |
| TXNTexas Instrument Inc | 0.98% | 4.35% | 3.37% |
| ADIAnalog Devices, Inc. | 0.75% | 4.40% | 3.65% |
| MRVLMarvell Technology Group Ltd. | 0.82% | 4.27% | 3.45% |
83.2% of SMH is already inside FTEC.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTEC or SMH?
FTEC has an expense ratio of 0.08% while SMH charges 0.35%. FTEC is the cheaper option, by $27 a year on a $10,000 investment.
Which performed better, FTEC or SMH?
Over the past year FTEC returned +34.64% vs +73.64% for SMH, so SMH leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.51% vs +31.15% for SMH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTEC or SMH?
SMH has been the more volatile fund at 26.8% annualized versus 19.6% for FTEC. Worst drawdown: FTEC -35.0% vs SMH -45.3%.
Should I hold both FTEC and SMH?
FTEC and SMH have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FTEC and SMH?
83.2% of SMH's money is in holdings FTEC also owns. 83.2% of SMH's is in holdings FTEC also owns. They hold 21 positions in common, counted across the 281 positions we hold weights for in FTEC and 25 in SMH.
Which pays a higher dividend, FTEC or SMH?
FTEC yields 0.35% while SMH yields 0.20%, so FTEC currently pays the higher dividend yield.
Is SMH better than FTEC?
FTEC has a lower expense ratio. SMH led over 1Y, 3Y, 5Y and the full window. FTEC is less concentrated, with 63.5% of the fund in its ten largest positions against 71.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.