Identical Tech Exposure, Lower Cost or Greater Liquidity? VGT vs. FTEC

Core Insights - Vanguard Information Technology ETF (VGT) and Fidelity MSCI Information Technology Index ETF (FTEC) both focus on U.S. technology stocks, with VGT having significantly higher assets under management and trading volume, while FTEC has a slightly lower expense ratio [1][2]. Cost & Size - VGT has an expense ratio of 0.09% and assets under management (AUM) of $126.5 billion, while FTEC has an expense ratio of 0.08% and AUM of $15.96 billion [3]. - The one-year return for VGT is 23.7% compared to FTEC's 24.1%, and the dividend yield for VGT is 0.42% versus FTEC's 0.44% [3][4]. Performance & Risk Comparison - The maximum drawdown over five years for VGT is -35.07%, while FTEC's is -34.95% [5]. - An investment of $1,000 would grow to $2,035 in VGT and $2,057 in FTEC over five years [5]. Portfolio Composition - FTEC tracks the MSCI USA IMI Information Technology 25/50 Index, holding 294 stocks, with top positions in Nvidia (18.25%), Apple (15.41%), and Microsoft (10.07%) [6]. - VGT holds 310 stocks, with a similar concentration in technology and top holdings in Nvidia, Apple, and Microsoft [7]. Investment Implications - The primary differences between VGT and FTEC lie in management style, cost, and scale, with both funds heavily weighted towards the same major technology companies [8][9].