FTEC vs XLK

FTEC vs XLK

Which is better, FTEC or XLK?

Each has led over a different period.

FTEC led over 3Y and the full window, XLK over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.99. XLK is less concentrated, with 61.2% of the fund in its ten largest positions against 63.7%.

Lower Fees: TiedHigher Returns: splitLess Concentrated: XLK

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

MetricFTECXLK
Expense Ratio0.08%Tie0.08%Tie
AUM$19.9B$119.7B
Dividend Yield0.35%0.43%
Holdings7777
YTD Return+33.27%+35.70%Best
1Y Return+35.74%+39.97%Best
3Y Return (annualized)+35.18%Best+34.15%
5Y Return (annualized)+19.95%+20.93%Best
Volatility (annualized)19.7%19.6%Best
Max Drawdown-35.0%-33.6%Best
$10,000 over 5 years$24,831$25,862Best
Top 10 Weight63.7%61.2%Best
Fund FamilyFidelity Investments (US)SPDR State Street Global Advisors
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Growth
InceptionOct 21, 2013Dec 16, 1998

Volatility and max drawdown are measured over the window both funds cover: Oct 24, 2013 to Sep 23, 2026 (12.9 years).

FTEC vs XLK 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 XLK Performance

Fidelity MSCI Information Technology Index ETF (FTEC) is an ETF from Fidelity Investments (US) and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from SPDR State Street Global Advisors. Over the past year FTEC returned +35.74% while XLK returned +39.97%. Year to date, FTEC is up 33.27% versus a gain of 35.70% for XLK.

Over three years, FTEC compounded at +35.18% per year against +34.15% for XLK; over five years the annualized figures are +19.95% and +20.93% respectively. Across the full 13-year window we track, FTEC has the edge at +21.53% annualized vs +21.39%.

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 XLK. 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 -33.6% for XLK. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.99. 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 XLK charges 0.08%. On a $10,000 position that is $8 vs $8 annually. On income, FTEC currently yields 0.35% against 0.43% for XLK.

Holdings Overlap

FTEC already in XLK88.7%
XLK already in FTEC100.0%

88.7% of FTEC's money is in holdings XLK also owns. 100.0% of XLK's money is in holdings FTEC also owns.

Most of XLK is already inside FTEC. Owning both mostly buys the same companies twice.

73 positions in common, counted across the 283 positions we hold weights for in FTEC and 74 in XLK, against full books of 77 and 77.

What only one of them owns

Our book lists 1 positions for XLK that do not appear in our book for FTEC (0.0% of the fund), and 177 for FTEC that do not appear in XLK (10.8%).

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

StockWeight in FTECWeight in XLKDifference
NVDANvidia Corp17.73%14.37%3.36%
AAPLApple, Inc16.46%13.03%3.43%
MSFTMicrosoft Corp11.55%10.15%1.40%
AVGOBroadcom Inc4.58%4.78%0.20%
MUMicron Technology, Inc.4.15%3.95%0.20%
AMDAdvanced Micro Devices Inc2.94%3.90%0.96%
CSCOCisco Systems Inc. - Ordinary Shares1.73%2.89%1.16%
INTCIntel Corporation1.56%2.93%1.37%
PLTRPalantir Technologies Inc1.58%2.75%1.17%
LRCXLam Research Corp1.46%2.42%0.96%

100.0% of XLK 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.

FTECXLK

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FTEC or XLK?

FTEC has an expense ratio of 0.08% while XLK charges 0.08%. At the precision these are quoted to, they cost the same.

Which performed better, FTEC or XLK?

Over the past year FTEC returned +35.74% vs +39.97% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.53% vs +21.39% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FTEC or XLK?

FTEC has been the more volatile fund at 19.7% annualized versus 19.6% for XLK. Worst drawdown: FTEC -35.0% vs XLK -33.6%.

Should I hold both FTEC and XLK?

FTEC and XLK have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between FTEC and XLK?

100.0% of XLK's money is in holdings FTEC also owns. 100.0% of XLK's is in holdings FTEC also owns. They hold 73 positions in common, counted across the 283 positions we hold weights for in FTEC and 74 in XLK.

Which pays a higher dividend, FTEC or XLK?

FTEC yields 0.35% while XLK yields 0.43%, so XLK currently pays the higher dividend yield.

Is XLK better than FTEC?

FTEC led over 3Y and the full window, XLK over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.99. XLK is less concentrated, with 61.2% 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.