FTEC offers a lower expense ratio and higher dividend yield than IYW while delivering nearly identical one-year performance.
The Fidelity MSCI Information Technology Index ETF (FTEC) undercuts the iShares U.S. Technology ETF (IYW) on fees, charging 0.08% versus IYW’s 0.38%. Both funds track the domestic tech sector but FTEC delivers a 0.33% dividend yield, triple IYW’s 0.11% payout.
Over the past year, FTEC and IYW posted nearly identical total returns. FTEC holds 287 securities, led by Nvidia (16.7%), Apple (14.5%), and Microsoft (9.4%), while IYW’s 139-stock portfolio includes Nvidia (14.8%), Apple (13.5%), and Alphabet (12.1%).
FTEC’s broader diversification and lower cost structure may appeal to cost-conscious investors seeking exposure to large-cap tech stocks.