FTEC vs VTI
Fidelity MSCI Information Technology Index ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FTEC delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FTEC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.03% | |
| AUM | $19.9B | $666.9B | |
| Dividend Yield | 0.37% | 1.07% | |
| Holdings | 286 | 3,543 | |
| YTD Return | +24.62% | +13.12% | |
| 1Y Return | +36.71% | +20.82% | |
| 3Y Return (annualized) | +30.98% | +21.43% | |
| 5Y Return (annualized) | +18.35% | +11.84% | |
| Volatility (annualized) | 19.7% | 15.3% | |
| Max Drawdown | -35.0% | -56.6% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | May 24, 2001 |
FTEC vs VTI Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FTEC returned +36.71% while VTI returned +20.82%. Year to date, FTEC is up 24.62% versus a gain of 13.12% for VTI.
Over three years, FTEC compounded at +30.98% per year against +21.43% for VTI; over five years the annualized figures are +18.35% and +11.84% respectively. Across the full 13-year window we track, FTEC has the edge at +21.05% annualized vs +8.08%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTEC charges 0.08% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FTEC and VTI share 37 holdings out of 2825 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTEC or VTI?
FTEC has an expense ratio of 0.08% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, FTEC or VTI?
Over the past year FTEC returned +36.71% vs +20.82% for VTI, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.05% vs +8.08% for VTI. Past performance does not guarantee future results.
Which is riskier, FTEC or VTI?
FTEC has been the more volatile fund at 19.7% annualized versus 15.3% for VTI. Worst drawdown: FTEC -35.0% vs VTI -56.6%.
Should I hold both FTEC and VTI?
FTEC and VTI have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTEC and VTI?
FTEC and VTI share 37 common holdings with a 2.7% weight overlap. Combined, they hold 2825 unique securities.
Which pays a higher dividend, FTEC or VTI?
FTEC yields 0.37% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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