Vanguard’s VGT and Fidelity’s FTEC offer near-identical tech exposure but vary in expense ratios and assets under management.
The Vanguard Information Technology ETF (VGT) and Fidelity MSCI Information Technology Index ETF (FTEC) provide broad U.S. tech sector exposure, targeting software, hardware, and semiconductor firms. Both funds deliver similar portfolio outcomes despite tracking different indices, with top holdings mirroring the sector’s largest players.
VGT charges a 0.09% expense ratio, while FTEC undercuts it at 0.08%, a 0.01 percentage point difference. VGT holds 310 stocks with $118 billion in assets, leveraging its scale, while FTEC’s smaller size may appeal to cost-conscious investors. Both yield 0.4%, reflecting tech’s preference for reinvestment over dividends.
Performance and risk metrics for the two funds remain closely aligned, with minimal divergence in long-term returns. Investors prioritizing scale may favor VGT, while those seeking marginal cost savings may opt for FTEC.