Vanguard vs. Fidelity Technology ETFs
The Vanguard Information Technology ETF (VGT) and the Fidelity MSCI Information Technology Index ETF (FTEC) are both notable options in the tech investment space. While they share similar portfolio exposures, FTEC stands out with a slightly lower expense ratio and a marginally higher final dividend yield.
Both funds provide expansive access to the domestic technology sector, including everything from major software companies to semiconductor firms. They track different benchmarks, yet their underlying portfolios and historical risk profiles are quite alike. Choosing between them often feels like a classic dilemma.
Cost and Size Snapshots
| Metric | VGT | FTEC |
|---|---|---|
| Publisher | Vanguard | Fidelity |
| Expense Ratio | 0.09% | 0.08% |
| 1-Year Return (as of May 7, 2026) | 55.9% | 56.3% |
| Dividend Yield | 0.34% | 0.35% |
| Beta | 1.29 | 1.28 |
| Assets Under Management | $121.3 billion | $17.9 billion |
Beta indicates price volatility compared to the S&P 500, and is computed from five years of monthly returns. The one-year return reflects total return for the subsequent 12 months. Dividend yield measures the trailing 12-month distribution yield.
Given its expense ratio of 0.08%, the Fidelity fund is slightly cheaper for long-term investors and offers a bit higher yield.
Performance and Risk Comparison
| Metric | VGT | FTEC |
|---|---|---|
| Maximum Drawdown (5 Years) | (35.1%) | (34.9%) |
| $1,000 Growth in 5 Years (Total Return) | $2,432 | $2,456 |
What’s Inside
Founded in 2004, the Vanguard Information Technology ETF (VGT) manages a substantial portfolio with 317 stocks. Its largest holdings include Nvidia (18.5%), Apple (15.8%), and Microsoft (10.2%).
On the other hand, the Fidelity MSCI Information Technology Index ETF (FTEC), established in 2013, has 286 positions, with leading stakes in Nvidia (18.8%), Apple (14.3%), and Microsoft (9.9%).
Implications for Investors
As two of the most popular technology-focused ETFs, these options provide substantial diversification and access to key industry players at low costs. The differences between them are minimal, making it a tough decision for investors.
Overall, the Fidelity ETF appears to have a slight edge, with a lower expense ratio and higher dividend yield. Of course, yields can fluctuate daily due to market dynamics.
Additionally, over the past five years, Fidelity has seen a better performance, turning a $1,000 investment into $2,456 compared to Vanguard’s $2,432 (as of May 8, 2026). While past returns aren’t a surefire indicator of future success, this might present a helpful advantage in the decision-making process for investors.
