The Vanguard Information Technology ETF (VGT +2.69%) and Fidelity MSCI Information Technology Index ETF (FTEC +2.69%) are nearly identical in portfolio exposure, though FTEC provides a marginally lower expense ratio and a slightly higher trailing dividend yield.
These two funds provide investors with broad-based exposure to the domestic information technology sector, capturing everything from software giants to semiconductors. While they track different benchmarks, their underlying portfolios and historical risk profiles are similar, and choosing between them comes down to splitting hairs.
NYSEMKT: VGT
Key Data Points
Snapshot (cost & size)
| Metric | VGT | FTEC |
|---|---|---|
| Issuer | Vanguard | Fidelity |
| Expense ratio | 0.09% | 0.08% |
| 1-yr return (as of May 7, 2026) | 55.9% | 56.3% |
| Dividend yield | 0.34% | 0.35% |
| Beta | 1.29 | 1.28 |
| AUM | $121.3 billion | $17.9 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Fidelity fund is marginally more affordable for long-term holders, with its 0.08% expense ratio, and offers a marginally higher yield.
NYSEMKT: FTEC
Key Data Points
Performance & risk comparison
| Metric | VGT | FTEC |
|---|---|---|
| Max drawdown (5 yr) | (35.1%) | (34.9%) |
| Growth of $1,000 over 5 years (total return) | $2,432 | $2,456 |
What's inside
The Vanguard Information Technology ETF (VGT) was launched in 2004 and manages a larger portfolio consisting of 317 holdings. Three of its largest positions include Nvidia at 18.5%, Apple at 15.8%, and Microsoft at 10.2%.
By comparison, the Fidelity MSCI Information Technology Index ETF (FTEC) was launched in 2013 and currently holds 286 positions. Its largest positions include Nvidia at 18.8%, Apple at 14.3%, and Microsoft at 9.9%.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
These are two of the most widely held technology-focused ETFs. They offer adequate diversification and exposure to the sector’s biggest names at minimal fees. The differences are almost negligible, making it a difficult choice for investors.
Overall, the Fidelity ETF would have to get the nod. It has a lower expense ratio (just barely) and slightly higher dividend yield. However, the relative yields of these funds may change from day to day based on market trading and volatility.
To push it over the finish line, the Fidelity ETF has also marginally outperformed the Vanguard over the past five years, turning a $1,000 investment into $2,456, compared to the Vanguard’s $2,432 (as of May 8, 2026). Past returns are not always indicative of future performance, but in this case, it’s at least an advantage that may help investors decide between these funds.
