FQAL vs. FTEC

Last updated Aug 2, 2026

FQAL (Fidelity Quality Factor ETF) and FTEC (Fidelity MSCI Information Technology Index ETF) are both exchange-traded funds - FQAL is a Quality Factor fund tracking the Fidelity U.S. Quality Factor Index, while FTEC is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 5 years, FQAL returned 11.43%/yr vs 18.05%/yr for FTEC. Their correlation of 0.86 means they have usually moved in the same direction. FQAL charges 0.29%/yr vs 0.08%/yr for FTEC.

Performance

FQAL vs. FTEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Quality Factor ETF (FQAL) 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, FQAL achieves a 9.52% return, which is significantly lower than FTEC's 20.47% return.

FQAL

• 1D: 0.48%
• 1M: 0.93%
• 6M: 7.92%
• YTD: 9.52%
• 1Y: 18.77%
• 3Y*: 17.90%
• 5Y*: 11.43%
• 10Y*: —
• ALL TIME*: 14.45%

FTEC

• 1D: -0.35%
• 1M: -1.38%
• 6M: 21.39%
• YTD: 20.47%
• 1Y: 35.19%
• 3Y*: 26.88%
• 5Y*: 18.05%
• 10Y*: 23.84%
• ALL TIME*: 21.45%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FQAL Fidelity Quality Factor ETF	$3.79M	$3.24M	$3.26M
FTEC Fidelity MSCI Information Technology Index ETF	$82.97M	$78.72M	$94.67M

FQAL vs. FTEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FQAL Fidelity Quality Factor ETF	9.52%	16.93%	21.92%	24.20%	-19.70%	32.13%	16.17%	28.12%	-4.39%	23.03%
FTEC Fidelity MSCI Information Technology Index ETF	20.47%	22.11%	29.40%	53.30%	-29.59%	30.49%	45.83%	48.93%	-0.39%	36.83%

Correlation

The correlation between FQAL and FTEC is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (3Y) Balances recent behavior with more history.	0.83
Correlation (5Y) Shows whether the relationship held over a longer period.	0.88
Correlation (All Time) Calculated using the full available price history since Sep 15, 2016	0.86

The correlation between FQAL and FTEC shifts across timeframes, from 0.77 (1 year) to 0.88 (5 years), reflecting how their relationship changes across market environments.

FQAL vs. FTEC - Sectors Allocation Comparison

Sectors	FQAL	FTEC
Technology	36.7%	98.6%
Financial Services	12.0%	0.5%
Consumer Cyclical	9.6%	0.1%
Industrials	9.4%	0.3%
Communication Services	9.3%	0.5%
Healthcare	9.1%	-
Consumer Defensive	4.4%	-
Energy	3.3%	0.3%
Basic Materials	2.1%	0.0%
Real Estate	2.1%	-
Utilities	2.0%	-

Return for Risk

FQAL vs. FTEC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FQAL

FQAL Risk / Return Rank: 66
FQAL Sharpe Ratio Rank: 66
FQAL Sortino Ratio Rank: 66
FQAL Omega Ratio Rank: 65
FQAL Calmar Ratio Rank: 60
FQAL Martin Ratio Rank: 74

FTEC

FTEC Risk / Return Rank: 52
FTEC Sharpe Ratio Rank: 55
FTEC Sortino Ratio Rank: 52
FTEC Omega Ratio Rank: 51
FTEC Calmar Ratio Rank: 56
FTEC Martin Ratio Rank: 47

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FQAL vs. FTEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Quality Factor ETF (FQAL) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FQAL	FTEC	Difference
Sharpe ratio: Return per unit of total volatility	1.51	1.31	+0.20
Sortino ratio: Return per unit of downside risk	2.16	1.83	+0.34
Omega ratio: Gain probability vs. loss probability	1.27	1.23	+0.05
Calmar ratio: Return relative to maximum drawdown	2.08	1.97	+0.11
Martin ratio: Return relative to average drawdown	9.21	5.31	+3.90

FQAL vs. FTEC - Sharpe Ratio Comparison

The current FQAL Sharpe Ratio is 1.51, which is comparable to the FTEC Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of FQAL 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.

Drawdowns

FQAL vs. FTEC - Drawdown Comparison

The maximum FQAL drawdown since its inception was -33.71%, roughly equal to the maximum FTEC drawdown of -34.95%. Use the drawdown chart below to compare losses from any high point for FQAL and FTEC.

Drawdown Indicators

	FQAL	FTEC	Difference
Max Drawdown Largest peak-to-trough decline	-33.71%	-34.95%	+1.24%
Max Drawdown (1Y) Largest decline over 1 year	-8.43%	-16.26%	+7.83%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	-27.30%	+10.43%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-34.95%	+9.45%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.95%	—
Current Drawdown Current decline from peak	-0.42%	-10.03%	+9.61%
Average Drawdown Average peak-to-trough decline	-4.53%	-5.59%	+1.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.90%	6.02%	-4.12%

Volatility

FQAL vs. FTEC - Volatility Comparison

The current volatility for Fidelity Quality Factor ETF (FQAL) is 2.43%, while Fidelity MSCI Information Technology Index ETF (FTEC) has a volatility of 8.49%. This indicates that FQAL 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

	FQAL	FTEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.43%	8.49%	-6.06%
Volatility (6M) Calculated over the trailing 6-month period	8.94%	20.19%	-11.25%
Volatility (1Y) Calculated over the trailing 1-year period	11.60%	24.35%	-12.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.20%	25.87%	-9.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.49%	24.98%	-7.49%

FQAL vs. FTEC - Expense Ratio Comparison

FQAL has a 0.29% expense ratio, which is higher than FTEC's 0.08% expense ratio.

Dividends

FQAL vs. FTEC - Dividend Comparison

FQAL's dividend yield for the trailing twelve months is around 1.15%, more than FTEC's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FQAL Fidelity Quality Factor ETF	1.15%	1.12%	1.20%	1.35%	1.52%	1.17%	1.46%	1.55%	1.73%	1.53%	0.43%	0.00%
FTEC Fidelity MSCI Information Technology Index ETF	0.37%	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 FQAL and FTEC in my portfolio?

FQAL and FTEC have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FQAL or FTEC?

FTEC has higher volatility (8.49%) compared to FQAL (2.43%). In terms of maximum drawdown, FQAL dropped -33.71% vs FTEC's -34.95%.

Which ETF is better, FQAL or FTEC?

On 5-year performance, FTEC leads with 18.05% vs 11.43% for FQAL. On fees, FTEC is cheaper at 0.08% per year. On volatility, FQAL has been the lower-risk option at 2.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FQAL or FTEC?

Over the 5-year period, FTEC has performed better with a 18.05% return vs 11.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FQAL or FTEC?

FTEC is cheaper with a 0.08% expense ratio, compared with 0.29% for FQAL.

Which ETF pays a higher dividend yield, FQAL or FTEC?

FQAL has the higher dividend yield at 1.15%, compared with 0.37% for FTEC.

What is the main difference between FQAL and FTEC?

FQAL is categorized as Quality Factor, while FTEC is Technology Equities. FQAL tracks Fidelity U.S. Quality Factor Index, while FTEC tracks MSCI USA IMI Information Technology 25/50 Index. Their fees differ too: 0.29% for FQAL and 0.08% for FTEC.

Which has better risk-adjusted returns?

FQAL currently has the higher Sharpe Ratio (1.51 vs 1.31), 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.