FTEC vs. VGT: Which Technology ETF Is Better?

Someone asks:

I would like to get some tech exposure in my portfolio, should I invest in FTEC (Fidelity Information Technology Index ETF) or VGT (Information Technology Index Fund ETF Shares).

FTEC vs. VGT: What Are the Differences?

  • FTEC is an ETF from Fidelity. VGT is an ETF from Vanguard.
  • The expense ratio for FTEC is 0.08% while the expense ratio of VGT is 0.10%. The fund from Fidelity is slightly cheaper.
  • Fidelity Tech ETF has 7.20 billion in assets under management, while Vanguard Tech ETF has over 56 billion in assets under management.

FTEC vs. VGT: How Are They Similar?

  • FTEC and VGT aim to track the MSCI USA IMI Information Technology Index. Both funds invest at least 80% of their assets in the U.S information technology sector.
  • There is no minimum initial investment for both ETFs. You can even buy fractional shares.
  • FTEC and VGT pay dividends to shareholders on a quarterly basis.
  • When we compared the portfolio of FTEC to VGT, we found that their top 10 holdings are the same.
COMPANY SYMBOL TOTAL NET ASSETS
Apple Inc. AAPL 21.57%
Microsoft Corp. MSFT 17.65%
NVIDIA Corp. NVDA 5.40%
Visa Inc. Cl A V 2.69%
Mastercard Inc. MA 2.33%
Broadcom Inc. AVGO 2.01%
Adobe Inc. ADBE 1.99%
Cisco Systems Inc. CSCO 1.96%
Accenture PLC Cl A ACN 1.93%
Salesforce Inc. CRM 1.83%

FTEC vs. VGT: 5-Year Performance

Funds Fidelity® MSCI Information Technology Index ETF Vanguard Information Technology Index Fund ETF Shares
1 month +2.61% +2.60%
3 months +14.30% +14.28%
6 months +15.32% +15.33%
1 year +30.40% +30.38%
3 years +41.42% +41.43%
5 years +31.08% +31.79%

Which is Better, FTEC or VGT?

It’s difficult to say. As the comparisons above show, FTEC ETF from Fidelity and VGT ETF from Vanguard track the same underlying index, have the same top ten holdings, and charge comparable fees.

If you’re still undecided about which ETF to invest in, simply choose one.

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Hi! I'm Diego, 38, and I currently reside in New York. I work as a financial analyst. I primarily focus on initiatives involving research and data analysis.

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