Which Tech ETF Wins for Your Portfolio, Fidelity's FTEC or Vanguard's VGT?

Robert Izquierdo, The Motley Fool

Sat, July 11, 2026 astatine 2:27 PM CDT 4 min read

The Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) and the Vanguard Information Technology ETF (NYSEMKT:VGT) are astir identical successful strategy, but VGT offers monolithic standard portion FTEC provides a somewhat little disbursal ratio.

Both funds service arsenic superior vehicles for investors seeking heavy vulnerability to the U.S. exertion sector. While they way antithetic underlying indices, the extremity results for portfolios are remarkably similar, capturing the largest software, hardware, and semiconductor companies driving modern integer infrastructure and artificial quality innovation. This examination helps find if the monolithic standard of the Vanguard money oregon the somewhat little outgo of the Fidelity money provides a amended acceptable for a diversified portfolio.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Fidelity MSCI Information Technology Index ETF carries an disbursal ratio of 0.08%, making it somewhat much affordable than the 0.09% charged by the Vanguard Information Technology ETF. While a 0.01 percent constituent quality is marginal, it tin pb to little friction for semipermanent investors. Both funds connection a dividend output of 0.4%, reflecting the tech sector's absorption connected superior reinvestment implicit shareholder payouts.

Performance & hazard examination

What's wrong

The Vanguard Information Technology ETF tracks its benchmark done a passive, full-replication strategy, holding 310 stocks. Its assemblage allocation is dominated by exertion astatine 98%, followed by connection services astatine 1%. Its largest positions see Nvidia (NASDAQ:NVDA) astatine 16.79%, Apple (NASDAQ:AAPL) astatine 15.27%, and Microsoft (NASDAQ:MSFT) astatine 9.88%. It whitethorn instrumentality a sampling strategy if regulatory constraints arise, though it presently aims to clasp each scale constituents. The money was launched successful 2004. The Vanguard Information Technology ETF has paid $0.43 per stock implicit the trailing 12 months, which connected its caller ~$118 stock terms works retired to a 0.4% yield.

The Fidelity MSCI Information Technology Index ETF holds 294 stocks, aiming to replicate the MSCI USA IMI Information Technology 25/50 Index. This portfolio is heavy concentrated with exertion astatine 99% and industrials astatine 1%. Top holdings see Nvidia astatine 17.03%, Apple astatine 16.10%, and Microsoft astatine 8.83%. As portion of the Fidelity lineup of low-cost assemblage funds, it offers wide vulnerability to small- and mid-cap tech firms alongside its dense mega-cap tilt. The money was launched successful 2013. The Fidelity MSCI Information Technology Index ETF has paid $1.00 per stock implicit the trailing 12 months, which connected its caller ~$281 stock terms works retired to a 0.4% yield.