FTEC vs XLK
Fidelity MSCI Information Technology Index ETF vs State Street Technology Select Sector SPDR ETF
Which is better, FTEC or XLK?
Each has led over a different period.
FTEC led over 3Y and the full window, XLK over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.99. FTEC is less concentrated, with 14.4% of the fund in its ten largest positions against 61.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FTEC | XLK |
|---|---|---|
| Expense Ratio | 0.08%Tie | 0.08%Tie |
| AUM | $22.1B | $126.4B |
| Dividend Yield | 0.37% | 0.43% |
| Holdings | 870 | 152 |
| YTD Return | +30.40% | +32.44%Best |
| 1Y Return | +32.45% | +35.98%Best |
| 3Y Return (annualized) | +32.96%Best | +31.67% |
| 5Y Return (annualized) | +19.70% | +20.64%Best |
| Volatility (annualized) | 19.6%Tie | 19.6%Tie |
| Max Drawdown | -35.0% | -33.6%Best |
| $10,000 over 5 years | $24,574 | $25,554Best |
| Top 10 Weight | 14.4%Best | 61.0% |
| Fund Family | Fidelity Investments (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Oct 21, 2013 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Oct 24, 2013 to Oct 14, 2026 (13 years).
FTEC vs XLK growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13 years both funds cover.
FTEC vs XLK Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is an ETF from Fidelity Investments (US) and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from SPDR State Street Global Advisors. Over the past year FTEC returned +32.45% while XLK returned +35.98%. Year to date, FTEC is up 30.40% versus a gain of 32.44% for XLK.
Over three years, FTEC compounded at +32.96% per year against +31.67% for XLK; over five years the annualized figures are +19.70% and +20.64% respectively. Across the full 13-year window we track, FTEC has the edge at +21.23% annualized vs +21.05%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTEC and XLK have been equally volatile, both at 19.6% annualized.
The deepest peak-to-trough decline in our data was -35.0% for FTEC and -33.6% for XLK. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FTEC charges 0.08% per year while XLK charges 0.08%. On a $10,000 position that is $8 vs $8 annually. On income, FTEC currently yields 0.37% against 0.43% for XLK.
Holdings Overlap
3.8% of FTEC's money is in holdings XLK also owns. 0.8% of XLK's money is in holdings FTEC also owns.
FTEC and XLK share little of their money.
3 positions in common, counted across the 76 positions we hold weights for in FTEC and 74 in XLK, against full books of 870 and 152.
What only one of them owns
Our book lists 70 positions for XLK that do not appear in our book for FTEC (98.5% of the fund), and 50 for FTEC that do not appear in XLK (65.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FTEC and XLK you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTEC or XLK?
FTEC has an expense ratio of 0.08% while XLK charges 0.08%. At the precision these are quoted to, they cost the same.
Which performed better, FTEC or XLK?
Over the past year FTEC returned +32.45% vs +35.98% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.23% vs +21.05% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTEC or XLK?
FTEC and XLK have been equally volatile, both at 19.6% annualized. Worst drawdown: FTEC -35.0% vs XLK -33.6%.
Should I hold both FTEC and XLK?
FTEC and XLK have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FTEC and XLK?
3.8% of FTEC's money is in holdings XLK also owns. 0.8% of XLK's is in holdings FTEC also owns. They hold 3 positions in common, counted across the 76 positions we hold weights for in FTEC and 74 in XLK.
Which pays a higher dividend, FTEC or XLK?
FTEC yields 0.37% while XLK yields 0.43%, so XLK currently pays the higher dividend yield.
Is XLK better than FTEC?
FTEC led over 3Y and the full window, XLK over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.99. FTEC is less concentrated, with 14.4% of the fund in its ten largest positions against 61.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.