FTEC vs. VGT
Compare and contrast key facts about Fidelity MSCI Information Technology Index ETF (FTEC) and Vanguard Information Technology ETF (VGT).
FTEC and VGT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FTEC is a passively managed fund by Fidelity that tracks the performance of the MSCI USA IMI Information Technology Index. It was launched on Oct 21, 2013. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both FTEC and VGT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FTEC or VGT.
Key characteristics
| FTEC | VGT | |
|---|---|---|
| YTD Return | 1.34% | 1.35% |
| 1Y Return | 30.30% | 29.63% |
| 3Y Return (Ann) | 10.19% | 9.97% |
| 5Y Return (Ann) | 19.27% | 19.16% |
| 10Y Return (Ann) | 19.45% | 19.73% |
| Sharpe Ratio | 1.58 | 1.54 |
| Daily Std Dev | 18.27% | 18.28% |
| Max Drawdown | -34.95% | -54.63% |
| Current Drawdown | -7.61% | -7.47% |
Correlation
The correlation between FTEC and VGT is 1.00, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FTEC vs. VGT - Performance Comparison
The year-to-date returns for both investments are quite close, with FTEC having a 1.34% return and VGT slightly higher at 1.35%. Both investments have delivered pretty close results over the past 10 years, with FTEC having a 19.45% annualized return and VGT not far ahead at 19.73%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FTEC vs. VGT - Expense Ratio Comparison
FTEC has a 0.08% expense ratio, which is lower than VGT's 0.10% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
FTEC vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Information Technology Index ETF (FTEC) and Vanguard Information Technology ETF (VGT). 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.
Dividends
FTEC vs. VGT - Dividend Comparison
FTEC's dividend yield for the trailing twelve months is around 0.77%, more than VGT's 0.74% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTEC Fidelity MSCI Information Technology Index ETF | 0.77% | 0.77% | 0.93% | 0.63% | 0.83% | 1.03% | 1.20% | 0.96% | 1.25% | 1.27% | 1.09% | 0.18% |
VGT Vanguard Information Technology ETF | 0.74% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
FTEC vs. VGT - Drawdown Comparison
The maximum FTEC drawdown since its inception was -34.95%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for FTEC and VGT. For additional features, visit the drawdowns tool.
Volatility
FTEC vs. VGT - Volatility Comparison
Fidelity MSCI Information Technology Index ETF (FTEC) and Vanguard Information Technology ETF (VGT) have volatilities of 6.53% and 6.32%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.