Expense ratio and fund size set these two tech ETFs apart. See how subtle differences could impact your investment strategy.
The Vanguard Information Technology ETF (VGT 1.69%) and the Fidelity MSCI Information Technology Index ETF (FTEC 1.75%) are both designed to mirror the U.S. information technology market.
The two funds have almost identical sector allocations and top holdings, making cost, liquidity, and fund size the main differentiators for investors considering these options.
Snapshot (cost & size)
| Metric | VGT | FTEC |
|---|---|---|
| Issuer | Vanguard | Fidelity |
| Expense ratio | 0.09% | 0.08% |
| 1-yr return (as of Jan. 26, 2026) | 18.80% | 19.14% |
| Dividend yield | 0.40% | 0.43% |
| AUM | $130 billion | $17 billion |
| Beta (5Y monthly) | 1.29 | 1.28 |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
FTEC is marginally more affordable with a lower expense ratio. The funds offer very similar dividend yields, so investors likely won’t notice a meaningful difference in cost or income.
Performance & risk comparison
| Metric | VGT | FTEC |
|---|---|---|
| Max drawdown (5 y) | -35.08% | -34.95% |
| Growth of $1,000 over 5 years | $2,076 | $2,097 |
What’s inside
FTEC provides exposure to nearly 300 U.S. tech stocks, offering broad but concentrated tech exposure. Its sector allocation is 98% technology, with a very small allocation to communication services. Its top holdings include Nvidia, Microsoft, and Apple, and there are no leverage, ESG, or currency quirks to note.
VGT, by comparison, is also almost entirely technology-focused, with a handful of industrials and financials stocks. Its top three positions mirror FTEC’s. The portfolio holds slightly more names with 320 stocks, indicating similarly broad but tech-heavy diversification.
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What this means for investors
FTEC and VGT are virtually identical in most meaningful ways. They’re both tech-focused funds, with the same top holdings in roughly the same allocations. FTEC’s top three stocks make up 44.42% of assets, compared to 44.57% for VGT.
FTEC offers a marginally lower expense ratio of 0.08% compared to VGT’s 0.09%. It also has a slight advantage in income, with a dividend yield of 0.43% versus 0.40%. While these differences are minimal, they could affect your decision between the two funds, given how similar they are.
VGT holds 31 more stocks than FTEC, providing marginally more diversification. However, that hasn’t necessarily translated to a difference in performance or risk profile.
Perhaps the biggest difference between them is the assets under management (AUM). VGT is much larger than FTEC, and that size can result in greater liquidity — allowing investors to buy and sell larger amounts without affecting the ETF’s price.
For investors choosing between these two ETFs, AUM is the biggest differentiator. Otherwise, small differences in fees, dividend yield, and the number of holdings can make it easier to decide which one is best for your portfolio.