FTEC vs. VEA

Last updated Jun 25, 2026

FTEC (Fidelity MSCI Information Technology Index ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - FTEC is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, FTEC returned 25.18%/yr vs 10.74%/yr for VEA. A 0.69 correlation means they provide meaningful diversification when combined. FTEC charges 0.08%/yr vs 0.03%/yr for VEA.

Performance

FTEC vs. VEA - Performance Comparison

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

Returns By Period

In the year-to-date period, FTEC achieves a 22.66% return, which is significantly higher than VEA's 13.29% return. Over the past 10 years, FTEC has outperformed VEA with an annualized return of 25.18%, while VEA has yielded a comparatively lower 10.74% annualized return.

FTEC

• 1D: -0.73%
• 1M: -0.38%
• YTD: 22.66%
• 6M: 20.59%
• 1Y: 43.89%
• 3Y*: 30.26%
• 5Y*: 19.62%
• 10Y*: 25.18%

VEA

• 1D: 0.16%
• 1M: 0.27%
• YTD: 13.29%
• 6M: 12.91%
• 1Y: 28.78%
• 3Y*: 19.54%
• 5Y*: 9.47%
• 10Y*: 10.74%

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

FTEC vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTEC Fidelity MSCI Information Technology Index ETF	22.66%	22.11%	29.40%	53.30%	-29.59%	30.49%	45.83%	48.93%	-0.39%	36.83%
VEA Vanguard FTSE Developed Markets ETF	13.29%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between FTEC and VEA is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.69

The correlation between FTEC and VEA has been stable across timeframes, ranging from 0.61 to 0.69 - a consistent structural relationship.

FTEC vs. VEA - Sectors Allocation Comparison

Sectors	FTEC	VEA
Technology	98.3%	16.6%
Industrials	0.6%	17.5%
Financial Services	0.6%	22.3%
Energy	0.3%	4.7%
Communication Services	0.0%	3.2%
Consumer Cyclical	0.0%	7.4%
Basic Materials	0.0%	7.5%
Consumer Defensive	-	5.5%
Healthcare	-	7.6%
Real Estate	-	2.5%
Utilities	-	3.0%

Return for Risk

FTEC vs. VEA — Risk / Return Rank

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

FTEC

FTEC Risk / Return Rank: 59
FTEC Sharpe Ratio Rank: 66
FTEC Sortino Ratio Rank: 58
FTEC Omega Ratio Rank: 59
FTEC Calmar Ratio Rank: 61
FTEC Martin Ratio Rank: 52

VEA

VEA Risk / Return Rank: 57
VEA Sharpe Ratio Rank: 56
VEA Sortino Ratio Rank: 55
VEA Omega Ratio Rank: 57
VEA Calmar Ratio Rank: 56
VEA Martin Ratio Rank: 59

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. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Information Technology Index ETF (FTEC) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	FTEC	VEA	Difference
Sharpe ratio: Return per unit of total volatility	1.94	1.73	+0.21
Sortino ratio: Return per unit of downside risk	2.47	2.38	+0.09
Omega ratio: Gain probability vs. loss probability	1.33	1.32	+0.01
Calmar ratio: Return relative to maximum drawdown	2.71	2.49	+0.22
Martin ratio: Return relative to average drawdown	8.29	9.55	-1.26

FTEC vs. VEA - Sharpe Ratio Comparison

The current FTEC Sharpe Ratio is 1.94, which is comparable to the VEA Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of FTEC and VEA, 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

FTEC vs. VEA - Drawdown Comparison

The maximum FTEC drawdown since its inception was -34.95%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for FTEC and VEA.

Drawdown Indicators

	FTEC	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-34.95%	-60.68%	+25.73%
Max Drawdown (1Y) Largest decline over 1 year	-16.26%	-11.63%	-4.63%
Max Drawdown (3Y) Largest decline over 3 years	-27.30%	-13.45%	-13.85%
Max Drawdown (5Y) Largest decline over 5 years	-34.95%	-29.71%	-5.24%
Max Drawdown (10Y) Largest decline over 10 years	-34.95%	-35.73%	+0.78%
Current Drawdown Current decline from peak	-8.39%	-2.91%	-5.48%
Average Drawdown Average peak-to-trough decline	-5.57%	-13.26%	+7.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.31%	3.02%	+2.29%

Volatility

FTEC vs. VEA - Volatility Comparison

Fidelity MSCI Information Technology Index ETF (FTEC) has a higher volatility of 11.39% compared to Vanguard FTSE Developed Markets ETF (VEA) at 7.08%. This indicates that FTEC's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTEC	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.39%	7.08%	+4.31%
Volatility (6M) Calculated over the trailing 6-month period	18.57%	14.73%	+3.84%
Volatility (1Y) Calculated over the trailing 1-year period	22.79%	16.78%	+6.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.60%	16.76%	+8.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.86%	17.20%	+7.66%

FTEC vs. VEA - Expense Ratio Comparison

FTEC has a 0.08% expense ratio, which is higher than VEA's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FTEC vs. VEA - Dividend Comparison

FTEC's dividend yield for the trailing twelve months is around 0.36%, less than VEA's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTEC Fidelity MSCI Information Technology Index ETF	0.36%	0.43%	0.49%	0.77%	0.93%	0.63%	0.83%	1.03%	1.20%	0.96%	1.25%	1.27%
VEA Vanguard FTSE Developed Markets ETF	2.58%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both FTEC and VEA in my portfolio?

FTEC and VEA have a correlation of 0.64, 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 VEA?

FTEC has higher volatility (11.39%) compared to VEA (7.08%). In terms of maximum drawdown, FTEC dropped -34.95% vs VEA's -60.68%.

Which ETF is better, FTEC or VEA?

On 10-year performance, FTEC leads with 25.18% vs 10.74% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 7.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTEC or VEA?

Over the 10-year period, FTEC has performed better with a 25.18% return vs 10.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTEC or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.08% for FTEC.

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

VEA has the higher dividend yield at 2.58%, compared with 0.36% for FTEC.

What is the main difference between FTEC and VEA?

FTEC is categorized as Technology Equities, while VEA is Foreign Large Cap Equities. FTEC tracks MSCI USA IMI Information Technology 25/50 Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: Fidelity and Vanguard. Their fees differ too: 0.08% for FTEC and 0.03% for VEA.

Which has better risk-adjusted returns?

FTEC currently has the higher Sharpe Ratio (1.94 vs 1.73), 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.