Fidelity MSCI Information Technology Index ETF

FTEC

Market cap $17.4B

XLK and FTEC charge the same low expense ratio but differ in size, with XLK managing far more assets. FTEC holds nearly four times as many stocks as XLK, offering slightly broader tech sector exposure.

FTEC charges a much lower expense ratio and offers a higher dividend yield than IYW. Both ETFs delivered similar one-year returns, but FTEC showed a shallower maximum drawdown over five years.

SOXX is focused solely on semiconductors, while FTEC covers the entire technology sector with nearly 10 times as many holdings. FTEC has a much lower expense ratio but has lagged SOXX on recent one-year and five-year total returns.

FTEC matches VGT on sector and top holdings, but charges a slightly lower expense ratio Both ETFs delivered nearly identical 1-year and 5-year returns, with minimal differences in risk and drawdown VGT boasts much larger assets under management and greater trading liquidity compared to FTEC

Three tech ETFs. Three very different portfolios.

Investing in individual stocks requires staying on top of your portfolio and diversifying into many holdings, but you can also opt for a much simpler path with ETFs.

The software and IT services sub-sectors are undervalued based on historical baselines, while hardware is overvalued and of low quality. Fidelity MSCI Information Technology Index ETF offers low-cost, broad tech sector exposure with 288 holdings and a 0.08% expense ratio. FTEC is marginally cheaper than XLK on valuation ratios, but both ETFs have nearly identical long-term returns and risk metrics.

CHAT charges a much higher expense ratio but delivered significantly stronger one-year returns and a higher yield. FTEC is broader and more diversified, while CHAT is actively managed and focused on generative AI.

If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on October 21, 2013.

Investing in dividend-paying stocks is one way to make your money work for you. As companies grow, they generate a higher profit and share a part of the profit with the shareholders as a cash dividend.