FTEC vs. MSFT

Last updated Jun 9, 2026

FTEC (Fidelity MSCI Information Technology Index ETF) is Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, FTEC returned 24.92%/yr vs 24.64%/yr for MSFT. A 0.79 correlation means they provide meaningful diversification when combined.

Performance

FTEC vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Information Technology Index ETF (FTEC) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTEC achieves a 24.80% return, which is significantly higher than MSFT's -14.48% return. Both investments have delivered pretty close results over the past 10 years, with FTEC having a 24.92% annualized return and MSFT not far behind at 24.64%.

FTEC

• 1D: 1.73%
• 1M: 4.37%
• YTD: 24.80%
• 6M: 21.50%
• 1Y: 50.91%
• 3Y*: 31.72%
• 5Y*: 21.10%
• 10Y*: 24.92%

MSFT

• 1D: -1.18%
• 1M: -0.60%
• YTD: -14.48%
• 6M: -15.77%
• 1Y: -11.77%
• 3Y*: 8.85%
• 5Y*: 11.09%
• 10Y*: 24.64%

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

FTEC vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTEC Fidelity MSCI Information Technology Index ETF	24.80%	22.11%	29.40%	53.30%	-29.59%	30.49%	45.83%	48.93%	-0.39%	36.83%
MSFT Microsoft Corporation	-14.48%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between FTEC and MSFT is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.79

Over the past year, the correlation between FTEC and MSFT has dropped to 0.54 - well below their long-term average of 0.79, suggesting their price drivers have been diverging.

Return for Risk

FTEC vs. MSFT — Risk / Return Rank

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

FTEC

FTEC Risk / Return Rank: 71
FTEC Sharpe Ratio Rank: 82
FTEC Sortino Ratio Rank: 72
FTEC Omega Ratio Rank: 74
FTEC Calmar Ratio Rank: 69
FTEC Martin Ratio Rank: 61

MSFT

MSFT Risk / Return Rank: 24
MSFT Sharpe Ratio Rank: 21
MSFT Sortino Ratio Rank: 21
MSFT Omega Ratio Rank: 20
MSFT Calmar Ratio Rank: 31
MSFT Martin Ratio Rank: 28

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.

FTEC vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Information Technology Index ETF (FTEC) and Microsoft Corporation (MSFT). 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.

	FTEC	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	2.37	-0.47	+2.83
Sortino ratio: Return per unit of downside risk	2.91	-0.49	+3.40
Omega ratio: Gain probability vs. loss probability	1.39	0.94	+0.46
Calmar ratio: Return relative to maximum drawdown	3.15	-0.35	+3.49
Martin ratio: Return relative to average drawdown	10.02	-0.73	+10.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTEC vs. MSFT - Sharpe Ratio Comparison

The current FTEC Sharpe Ratio is 2.37, which is higher than the MSFT Sharpe Ratio of -0.47. The chart below compares the historical Sharpe Ratios of FTEC and MSFT, 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

	FTEC	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.37	-0.47	+2.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	0.42	+0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.01	0.91	+0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.96	0.74	+0.22

Drawdowns

FTEC vs. MSFT - Drawdown Comparison

The maximum FTEC drawdown since its inception was -34.95%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for FTEC and MSFT.

Drawdown Indicators

	FTEC	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-34.95%	-69.38%	+34.43%
Max Drawdown (1Y) Largest decline over 1 year	-16.26%	-33.91%	+17.65%
Max Drawdown (3Y) Largest decline over 3 years	-27.30%	-33.91%	+6.61%
Max Drawdown (5Y) Largest decline over 5 years	-34.95%	-37.15%	+2.20%
Max Drawdown (10Y) Largest decline over 10 years	-34.95%	-37.15%	+2.20%
Current Drawdown Current decline from peak	-6.80%	-23.56%	+16.76%
Average Drawdown Average peak-to-trough decline	-5.56%	-21.78%	+16.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.09%	16.13%	-11.04%

Volatility

FTEC vs. MSFT - Volatility Comparison

The current volatility for Fidelity MSCI Information Technology Index ETF (FTEC) is 9.45%, while Microsoft Corporation (MSFT) has a volatility of 10.25%. This indicates that FTEC experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTEC	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.45%	10.25%	-0.80%
Volatility (6M) Calculated over the trailing 6-month period	17.51%	22.36%	-4.85%
Volatility (1Y) Calculated over the trailing 1-year period	21.65%	25.31%	-3.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.38%	26.64%	-1.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.79%	27.06%	-2.27%

Dividends

FTEC vs. MSFT - Dividend Comparison

FTEC's dividend yield for the trailing twelve months is around 0.34%, less than MSFT's 0.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTEC Fidelity MSCI Information Technology Index ETF	0.34%	0.43%	0.49%	0.77%	0.93%	0.63%	0.83%	1.03%	1.20%	0.96%	1.25%	1.27%
MSFT Microsoft Corporation	0.86%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%

Frequently Asked Questions

Can I hold both FTEC and MSFT in my portfolio?

FTEC and MSFT have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTEC or MSFT?

MSFT has higher volatility (10.25%) compared to FTEC (9.45%). In terms of maximum drawdown, FTEC dropped -34.95% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

FTEC currently has the higher Sharpe Ratio (2.37 vs -0.47), 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.