FTEC vs VOO
Fidelity MSCI Information Technology Index ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FTEC delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FTEC | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.03% | |
| AUM | $19.9B | $997.4B | |
| Dividend Yield | 0.37% | 1.08% | |
| Holdings | 286 | 509 | |
| YTD Return | +29.35% | +13.49% | |
| 1Y Return | +40.20% | +20.64% | |
| 3Y Return (annualized) | +32.55% | +21.93% | |
| 5Y Return (annualized) | +19.10% | +12.95% | |
| Volatility (annualized) | 19.7% | 14.1% | |
| Max Drawdown | -35.0% | -34.3% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Sep 7, 2010 |
FTEC vs VOO Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FTEC returned +40.20% while VOO returned +20.64%. Year to date, FTEC is up 29.35% versus a gain of 13.49% for VOO.
Over three years, FTEC compounded at +32.55% per year against +21.93% for VOO; over five years the annualized figures are +19.10% and +12.95% respectively. Across the full 13-year window we track, FTEC has the edge at +21.39% annualized vs +13.51%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.90. 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 VOO charges 0.03%. On a $10,000 position that is $8 vs $3 annually, a gap of $5 per year that compounds over a long holding period. On income, FTEC currently yields 0.37% against 1.08% for VOO.
Holdings Overlap
FTEC and VOO share 23 holdings out of 557 unique holdings combined, representing a 2.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTEC or VOO?
FTEC has an expense ratio of 0.08% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, FTEC or VOO?
Over the past year FTEC returned +40.20% vs +20.64% for VOO, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.39% vs +13.51% for VOO. Past performance does not guarantee future results.
Which is riskier, FTEC or VOO?
FTEC has been the more volatile fund at 19.7% annualized versus 14.1% for VOO. Worst drawdown: FTEC -35.0% vs VOO -34.3%.
Should I hold both FTEC and VOO?
FTEC and VOO have a monthly-return correlation of 0.90, 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 VOO?
FTEC and VOO share 23 common holdings with a 2.8% weight overlap. Combined, they hold 557 unique securities.
Which pays a higher dividend, FTEC or VOO?
FTEC yields 0.37% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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