FFLEX vs. FTEC

Last updated Jun 4, 2026

FFLEX (Fidelity Freedom Index 2060 Fund Institutional Premium Class) and FTEC (Fidelity MSCI Information Technology Index ETF) are both funds - FFLEX is a Target Retirement Date fund managed by Fidelity, while FTEC is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Over the past 10 years, FFLEX returned 11.98%/yr vs 25.57%/yr for FTEC. Their correlation of 0.85 suggests significant overlap in exposure. Both charge a 0.08% expense ratio.

Performance

FFLEX vs. FTEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Freedom Index 2060 Fund Institutional Premium Class (FFLEX) and Fidelity MSCI Information Technology Index ETF (FTEC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FFLEX achieves a 12.63% return, which is significantly lower than FTEC's 31.89% return. Over the past 10 years, FFLEX has underperformed FTEC with an annualized return of 11.98%, while FTEC has yielded a comparatively higher 25.57% annualized return.

FFLEX

• 1D: 0.41%
• 1M: 5.63%
• YTD: 12.63%
• 6M: 13.55%
• 1Y: 28.80%
• 3Y*: 19.60%
• 5Y*: 10.15%
• 10Y*: 11.98%

FTEC

• 1D: -1.49%
• 1M: 18.21%
• YTD: 31.89%
• 6M: 30.74%
• 1Y: 60.87%
• 3Y*: 33.93%
• 5Y*: 22.49%
• 10Y*: 25.57%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FFLEX vs. FTEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FFLEX Fidelity Freedom Index 2060 Fund Institutional Premium Class	12.63%	21.47%	14.20%	19.97%	-18.19%	15.98%	16.46%	26.17%	-7.21%	20.63%
FTEC Fidelity MSCI Information Technology Index ETF	31.89%	22.11%	29.40%	53.30%	-29.59%	30.49%	45.83%	48.93%	-0.39%	36.83%

Correlation

The correlation between FFLEX and FTEC is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jun 30, 2015	0.85

The correlation between FFLEX and FTEC has been stable across timeframes, ranging from 0.81 to 0.86 - a consistent structural relationship.

Return for Risk

FFLEX vs. FTEC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FFLEX

FFLEX Risk / Return Rank: 71
FFLEX Sharpe Ratio Rank: 74
FFLEX Sortino Ratio Rank: 69
FFLEX Omega Ratio Rank: 68
FFLEX Calmar Ratio Rank: 69
FFLEX Martin Ratio Rank: 75

FTEC

FTEC Risk / Return Rank: 77
FTEC Sharpe Ratio Rank: 87
FTEC Sortino Ratio Rank: 80
FTEC Omega Ratio Rank: 78
FTEC Calmar Ratio Rank: 73
FTEC Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FFLEX vs. FTEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom Index 2060 Fund Institutional Premium Class (FFLEX) and Fidelity MSCI Information Technology Index ETF (FTEC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FFLEX	FTEC	Difference
Sharpe ratio Return per unit of total volatility	2.50	2.97	-0.47
Sortino ratio Return per unit of downside risk	3.46	3.65	-0.20
Omega ratio Gain probability vs. loss probability	1.46	1.48	-0.02
Calmar ratio Return relative to maximum drawdown	3.21	3.76	-0.55
Martin ratio Return relative to average drawdown	14.22	12.10	+2.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FFLEX vs. FTEC - Sharpe Ratio Comparison

The current FFLEX Sharpe Ratio is 2.50, which is comparable to the FTEC Sharpe Ratio of 2.97. The chart below compares the historical Sharpe Ratios of FFLEX and FTEC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FFLEX	FTEC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	2.97	-0.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.90	-0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	1.04	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.99	-0.26

Drawdowns

FFLEX vs. FTEC - Drawdown Comparison

The maximum FFLEX drawdown since its inception was -30.71%, smaller than the maximum FTEC drawdown of -34.95%. Use the drawdown chart below to compare losses from any high point for FFLEX and FTEC.

Drawdown Indicators

	FFLEX	FTEC	Difference
Max Drawdown Largest peak-to-trough decline	-30.71%	-34.95%	+4.24%
Max Drawdown (1Y) Largest decline over 1 year	-9.07%	-16.26%	+7.19%
Max Drawdown (3Y) Largest decline over 3 years	-14.68%	-27.30%	+12.62%
Max Drawdown (5Y) Largest decline over 5 years	-26.17%	-34.95%	+8.78%
Max Drawdown (10Y) Largest decline over 10 years	-30.71%	-34.95%	+4.24%
Current Drawdown Current decline from peak	0.00%	-1.49%	+1.49%
Average Drawdown Average peak-to-trough decline	-4.67%	-5.56%	+0.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.04%	5.05%	-3.01%

Volatility

FFLEX vs. FTEC - Volatility Comparison

The current volatility for Fidelity Freedom Index 2060 Fund Institutional Premium Class (FFLEX) is 3.53%, while Fidelity MSCI Information Technology Index ETF (FTEC) has a volatility of 6.43%. This indicates that FFLEX experiences smaller price fluctuations and is considered to be less risky than FTEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FFLEX	FTEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.53%	6.43%	-2.90%
Volatility (6M) Calculated over the trailing 6-month period	9.38%	16.14%	-6.76%
Volatility (1Y) Calculated over the trailing 1-year period	11.64%	20.63%	-8.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.39%	25.23%	-10.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.16%	24.69%	-9.53%

FFLEX vs. FTEC - Expense Ratio Comparison

Both FFLEX and FTEC have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

FFLEX vs. FTEC - Dividend Comparison

FFLEX's dividend yield for the trailing twelve months is around 1.71%, more than FTEC's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFLEX Fidelity Freedom Index 2060 Fund Institutional Premium Class	1.71%	1.98%	1.98%	1.94%	2.03%	1.95%	1.85%	6.75%	2.36%	2.16%	2.44%	1.82%
FTEC Fidelity MSCI Information Technology Index ETF	0.32%	0.43%	0.49%	0.77%	0.93%	0.63%	0.83%	1.03%	1.20%	0.96%	1.25%	1.27%

Frequently Asked Questions

Can I hold both FFLEX and FTEC in my portfolio?

FFLEX and FTEC have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FFLEX or FTEC?

FTEC has higher volatility (6.43%) compared to FFLEX (3.53%). In terms of maximum drawdown, FFLEX dropped -30.71% vs FTEC's -34.95%.

Which has better risk-adjusted returns?

FTEC currently has the higher Sharpe Ratio (2.97 vs 2.50), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.