FTEC vs. XLE

Last updated Jun 16, 2026

FTEC (Fidelity MSCI Information Technology Index ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - FTEC is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, FTEC returned 25.51%/yr vs 9.49%/yr for XLE. At a 0.32 correlation, their price movements are largely independent. Both charge a 0.08% expense ratio.

Performance

FTEC vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Information Technology Index ETF (FTEC) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTEC achieves a 28.48% return, which is significantly higher than XLE's 25.06% return. Over the past 10 years, FTEC has outperformed XLE with an annualized return of 25.51%, while XLE has yielded a comparatively lower 9.49% annualized return.

FTEC

• 1D: 3.38%
• 1M: 6.58%
• YTD: 28.48%
• 6M: 30.07%
• 1Y: 56.15%
• 3Y*: 31.16%
• 5Y*: 21.43%
• 10Y*: 25.51%

XLE

• 1D: -3.48%
• 1M: -6.54%
• YTD: 25.06%
• 6M: 24.78%
• 1Y: 30.16%
• 3Y*: 14.85%
• 5Y*: 19.05%
• 10Y*: 9.49%

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

FTEC vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTEC Fidelity MSCI Information Technology Index ETF	28.48%	22.11%	29.40%	53.30%	-29.59%	30.49%	45.83%	48.93%	-0.39%	36.83%
XLE State Street Energy Select Sector SPDR ETF	25.06%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%

Correlation

The correlation between FTEC and XLE is -0.14, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.05
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.32

The correlation between FTEC and XLE shifts across timeframes, from -0.14 (1 year) to 0.32 (all time), reflecting how their relationship changes across market environments.

FTEC vs. XLE - Sectors Allocation Comparison

Sectors	FTEC	XLE
Technology	98.3%	-
Industrials	0.6%	-
Financial Services	0.5%	-
Energy	0.4%	100.0%
Communication Services	0.0%	-
Consumer Cyclical	0.0%	-
Basic Materials	0.0%	-
Consumer Defensive	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FTEC vs. XLE — Risk / Return Rank

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

FTEC

FTEC Risk / Return Rank: 77
FTEC Sharpe Ratio Rank: 87
FTEC Sortino Ratio Rank: 79
FTEC Omega Ratio Rank: 80
FTEC Calmar Ratio Rank: 75
FTEC Martin Ratio Rank: 65

XLE

XLE Risk / Return Rank: 46
XLE Sharpe Ratio Rank: 46
XLE Sortino Ratio Rank: 43
XLE Omega Ratio Rank: 41
XLE Calmar Ratio Rank: 56
XLE Martin Ratio Rank: 46

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. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Information Technology Index ETF (FTEC) and State Street Energy Select Sector SPDR ETF (XLE). 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	XLE	Difference
Sharpe ratio: Return per unit of total volatility	2.54	1.46	+1.08
Sortino ratio: Return per unit of downside risk	3.11	1.97	+1.13
Omega ratio: Gain probability vs. loss probability	1.42	1.24	+0.18
Calmar ratio: Return relative to maximum drawdown	3.47	2.51	+0.96
Martin ratio: Return relative to average drawdown	10.80	6.91	+3.89

FTEC vs. XLE - Sharpe Ratio Comparison

The current FTEC Sharpe Ratio is 2.54, which is higher than the XLE Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of FTEC and XLE, 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. XLE - Drawdown Comparison

The maximum FTEC drawdown since its inception was -34.95%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for FTEC and XLE.

Drawdown Indicators

	FTEC	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-34.95%	-71.26%	+36.31%
Max Drawdown (1Y) Largest decline over 1 year	-16.26%	-12.05%	-4.21%
Max Drawdown (3Y) Largest decline over 3 years	-27.30%	-20.14%	-7.16%
Max Drawdown (5Y) Largest decline over 5 years	-34.95%	-26.04%	-8.91%
Max Drawdown (10Y) Largest decline over 10 years	-34.95%	-66.81%	+31.86%
Current Drawdown Current decline from peak	-4.04%	-11.21%	+7.17%
Average Drawdown Average peak-to-trough decline	-5.57%	-17.97%	+12.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.21%	4.38%	+0.83%

Volatility

FTEC vs. XLE - Volatility Comparison

Fidelity MSCI Information Technology Index ETF (FTEC) has a higher volatility of 10.43% compared to State Street Energy Select Sector SPDR ETF (XLE) at 8.02%. This indicates that FTEC's price experiences larger fluctuations and is considered to be riskier than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTEC	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.43%	8.02%	+2.41%
Volatility (6M) Calculated over the trailing 6-month period	18.33%	17.19%	+1.14%
Volatility (1Y) Calculated over the trailing 1-year period	22.26%	20.86%	+1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.49%	26.10%	-0.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.84%	29.61%	-4.77%

FTEC vs. XLE - Expense Ratio Comparison

Both FTEC and XLE 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

FTEC vs. XLE - Dividend Comparison

FTEC's dividend yield for the trailing twelve months is around 0.33%, less than XLE's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTEC Fidelity MSCI Information Technology Index ETF	0.33%	0.43%	0.49%	0.77%	0.93%	0.63%	0.83%	1.03%	1.20%	0.96%	1.25%	1.27%
XLE State Street Energy Select Sector SPDR ETF	2.69%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both FTEC and XLE in my portfolio?

FTEC and XLE have a correlation of -0.14, 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 XLE?

FTEC has higher volatility (10.43%) compared to XLE (8.02%). In terms of maximum drawdown, FTEC dropped -34.95% vs XLE's -71.26%.

Which ETF is better, FTEC or XLE?

On 10-year performance, FTEC leads with 25.51% vs 9.49% for XLE. Both ETFs have the same 0.08% expense ratio. On volatility, XLE has been the lower-risk option at 8.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTEC or XLE?

Over the 10-year period, FTEC has performed better with a 25.51% return vs 9.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTEC or XLE?

FTEC and XLE have the same expense ratio: 0.08% per year.

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

XLE has the higher dividend yield at 2.69%, compared with 0.33% for FTEC.

What is the main difference between FTEC and XLE?

FTEC is categorized as Technology Equities, while XLE is Energy Equities. FTEC tracks MSCI USA IMI Information Technology 25/50 Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: Fidelity and State Street.

Which has better risk-adjusted returns?

FTEC currently has the higher Sharpe Ratio (2.54 vs 1.46), 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.