FTEC vs XLK
Fidelity MSCI Information Technology Index ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
XLK has a lower expense ratio. XLK delivered stronger 1-year returns.
Side-by-Side Comparison
| Metric | FTEC | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.08% | |
| AUM | $19.9B | $121.0B | |
| Dividend Yield | 0.37% | 0.45% | |
| Holdings | 77 | 77 | |
| YTD Return | +26.32% | +27.54% | |
| 1Y Return | +39.13% | +42.08% | |
| 3Y Return (annualized) | +29.83% | +28.51% | |
| 5Y Return (annualized) | +18.42% | +19.16% | |
| Volatility (annualized) | 19.7% | 23.2% | |
| Max Drawdown | -35.0% | -82.0% | |
| Fund Family | Fidelity Investments (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Dec 16, 1998 |
FTEC vs XLK Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and State Street Technology Select Sector SPDR ETF (XLK) is a ETF from SPDR State Street Global Advisors. Over the past year FTEC returned +39.13% while XLK returned +42.08%. Year to date, FTEC is up 26.32% versus a gain of 27.54% for XLK.
Over three years, FTEC compounded at +29.83% per year against +28.51% for XLK; over five years the annualized figures are +18.42% and +19.16% respectively. Across the full 13-year window we track, FTEC has the edge at +21.14% annualized vs +9.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 19.7% for FTEC. 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 -82.0% for XLK. 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 0.99. 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, a gap of $0 per year that compounds over a long holding period. On income, FTEC currently yields 0.37% against 0.45% for XLK.
Holdings Overlap
FTEC and XLK share 3 holdings out of 146 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTEC or XLK?
FTEC has an expense ratio of 0.08% while XLK charges 0.08%. XLK is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, FTEC or XLK?
Over the past year FTEC returned +39.13% vs +42.08% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.14% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, FTEC or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 19.7% for FTEC. Worst drawdown: FTEC -35.0% vs XLK -82.0%.
Should I hold both FTEC and XLK?
FTEC and XLK have a monthly-return correlation of 0.99, 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 XLK?
FTEC and XLK share 3 common holdings with a 0.8% weight overlap. Combined, they hold 146 unique securities.
Which pays a higher dividend, FTEC or XLK?
FTEC yields 0.37% while XLK yields 0.45%, so XLK currently pays the higher dividend yield.
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