FTEC vs VYM
Fidelity MSCI Information Technology Index ETF vs Vanguard High Dividend Yield ETF
Which is better, FTEC or VYM?
Large Cap Growth against Large Cap Value.
VYM has a lower expense ratio. FTEC led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 63.7%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.08% | 0.04%Best |
| AUM | $19.9B | $81.6B |
| Dividend Yield | 0.35% | 2.22% |
| Holdings | 77 | 613 |
| YTD Return | +26.12%Best | +11.71% |
| 1Y Return | +32.30%Best | +16.24% |
| 3Y Return (annualized) | +31.57%Best | +17.24% |
| 5Y Return (annualized) | +18.52%Best | +11.86% |
| Volatility (annualized) | 19.7% | 13.4%Best |
| Max Drawdown | -35.0%Best | -35.7% |
| $10,000 over 5 years | $23,386Best | $17,514 |
| Top 10 Weight | 63.7% | 26.1%Best |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Oct 21, 2013 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 24, 2013 to Sep 16, 2026 (12.9 years).
FTEC vs VYM 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 12.9 years both funds cover.
FTEC vs VYM Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is an ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FTEC returned +32.30% while VYM returned +16.24%. Year to date, FTEC is up 26.12% versus a gain of 11.71% for VYM.
Over three years, FTEC compounded at +31.57% per year against +17.24% for VYM; over five years the annualized figures are +18.52% and +11.86% respectively. Across the full 13-year window we track, FTEC has the edge at +21.05% annualized vs +9.26%.
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 13.4% for VYM. 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.67. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FTEC charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FTEC currently yields 0.35% against 2.22% for VYM.
Holdings Overlap
14.0% of FTEC's money is in holdings VYM also owns. 15.9% of VYM's money is in holdings FTEC also owns.
VYM and FTEC share little of their money.
28 positions in common, counted across the 283 positions we hold weights for in FTEC and 557 in VYM, against full books of 77 and 613.
What only one of them owns
Our book lists 501 positions for VYM that do not appear in our book for FTEC (81.5% of the fund), and 221 for FTEC that do not appear in VYM (85.6%).
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 VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 4.58% | 7.35% | 2.77% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.73% | 1.86% | 0.13% |
| TXNTexas Instrument Inc | 0.94% | 1.02% | 0.08% |
| ORCLOracle Corp - Common | 0.94% | 0.90% | 0.04% |
| IBMInternational Business Machines Corp. | 0.87% | 0.85% | 0.02% |
| ADIAnalog Devices, Inc. | 0.72% | 0.73% | 0.01% |
| QCOMQualcomm Inc. | 0.73% | 0.63% | 0.10% |
| DELLDell Technologies Inc | 0.54% | 0.50% | 0.04% |
| ACN:IEAccenture PLC Cl A | 0.48% | 0.41% | 0.07% |
| HPEHewlett Packard Enterprise Co | 0.31% | 0.26% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of FTEC and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTEC or VYM?
FTEC has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, FTEC or VYM?
Over the past year FTEC returned +32.30% vs +16.24% for VYM, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.05% vs +9.26% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTEC or VYM?
FTEC has been the more volatile fund at 19.7% annualized versus 13.4% for VYM. Worst drawdown: FTEC -35.0% vs VYM -35.7%.
Should I hold both FTEC and VYM?
FTEC and VYM have a monthly-return correlation of 0.67, 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 VYM?
15.9% of VYM's money is in holdings FTEC also owns. 15.9% of VYM's is in holdings FTEC also owns. They hold 28 positions in common, counted across the 283 positions we hold weights for in FTEC and 557 in VYM.
Which pays a higher dividend, FTEC or VYM?
FTEC yields 0.35% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than FTEC?
VYM has a lower expense ratio. FTEC led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 63.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.