FTEC vs VGT
Fidelity MSCI Information Technology Index ETF vs Vanguard Information Technology ETF
Quick Verdict
FTEC has a lower expense ratio. FTEC delivered stronger 1-year returns. VGT offers more diversification with 324 holdings.
Side-by-Side Comparison
| Metric | FTEC | VGT | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.09% | |
| AUM | $19.9B | $138.8B | |
| Dividend Yield | 0.37% | 0.38% | |
| Holdings | 286 | 324 | |
| YTD Return | +29.35% | +29.30% | |
| 1Y Return | +40.20% | +39.76% | |
| 3Y Return (annualized) | +32.55% | +32.12% | |
| 5Y Return (annualized) | +19.10% | +18.85% | |
| Volatility (annualized) | 19.7% | 19.6% | |
| Max Drawdown | -35.0% | -54.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Jan 26, 2004 |
FTEC vs VGT Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and Vanguard Information Technology ETF (VGT) is a ETF from Vanguard (US). Over the past year FTEC returned +40.20% while VGT returned +39.76%. Year to date, FTEC is up 29.35% versus a gain of 29.30% for VGT.
Over three years, FTEC compounded at +32.55% per year against +32.12% for VGT; over five years the annualized figures are +19.10% and +18.85% respectively. Across the full 13-year window we track, FTEC has the edge at +21.39% annualized vs +14.34%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTEC has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 19.6% for VGT. 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 -54.8% for VGT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FTEC charges 0.08% per year while VGT charges 0.09%. On a $10,000 position that is $8 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, FTEC currently yields 0.37% against 0.38% for VGT.
Holdings Overlap
FTEC and VGT share 13 holdings out of 384 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTEC or VGT?
FTEC has an expense ratio of 0.08% while VGT charges 0.09%. FTEC is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, FTEC or VGT?
Over the past year FTEC returned +40.20% vs +39.76% for VGT, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.39% vs +14.34% for VGT. Past performance does not guarantee future results.
Which is riskier, FTEC or VGT?
FTEC has been the more volatile fund at 19.7% annualized versus 19.6% for VGT. Worst drawdown: FTEC -35.0% vs VGT -54.8%.
Should I hold both FTEC and VGT?
FTEC and VGT have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FTEC and VGT?
FTEC and VGT share 13 common holdings with a 1.1% weight overlap. Combined, they hold 384 unique securities.
Which pays a higher dividend, FTEC or VGT?
FTEC yields 0.37% while VGT yields 0.38%, so VGT currently pays the higher dividend yield.
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