---
title: "Identical Tech Exposure, Lower Cost or Greater Liquidity? VGT vs. FTEC"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280667898.md"
description: "Fidelity MSCI Information Technology Index ETF (FTEC) and Vanguard Information Technology ETF (VGT) offer similar exposure to U.S. tech stocks, with FTEC having a lower expense ratio of 0.08% compared to VGT's 0.09%. Both ETFs have shown nearly identical returns over 1 and 5 years, but VGT has significantly larger assets under management and greater liquidity. Investors should consider whether lower costs or trading efficiency is more important for their investment strategy, as both funds provide comparable portfolios focused on major tech companies like Nvidia, Apple, and Microsoft."
datetime: "2026-03-26T17:05:23.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280667898.md)
  - [en](https://longbridge.com/en/news/280667898.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280667898.md)
---

# Identical Tech Exposure, Lower Cost or Greater Liquidity? VGT vs. FTEC

## Key Points

-   FTEC matches VGT on sector and top holdings, but charges a slightly lower expense ratio
-   Both ETFs delivered nearly identical 1-year and 5-year returns, with minimal differences in risk and drawdown
-   VGT boasts much larger assets under management and greater trading liquidity compared to FTEC
-   10 stocks we like better than Fidelity Covington Trust - Fidelity Msci Information Technology Index ETF ›

Vanguard Information Technology ETF (**NYSEMKT:VGT**) and Fidelity MSCI Information Technology Index ETF (**NYSEMKT:FTEC**) both target U.S. technology stocks with similar sector allocations and top holdings, but VGT commands far greater assets under management and higher daily trading volume, while FTEC edges out with a marginally lower expense ratio.

Both VGT and FTEC are passively managed funds focused on the U.S. information technology sector, offering exposure to major players like Nvidia, Apple, and Microsoft. This comparison looks at their costs, performance, risk, and portfolio details to help investors assess which may better fit their needs.

## Snapshot (cost & size)

Metric

VGT

FTEC

Issuer

Vanguard

Fidelity

Expense ratio

0.09%

0.08%

1-yr return (as of 2026-03-24)

23.7%

24.1%

Dividend yield

0.42%

0.44%

Beta

1.32

1.31

AUM

$126.5 billion

$15.96 billion

_Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months._

FTEC is slightly more affordable, charging a 0.08% expense ratio versus VGT’s 0.09%, but VGT delivers a marginally higher dividend yield at 0.5% compared to FTEC’s 0.4%.

## Performance & risk comparison

Metric

VGT

FTEC

Max drawdown (5 y)

\-35.07%

\-34.95%

Growth of $1,000 over 5 years

$2,035

$2,057

## What's inside

FTEC tracks the MSCI USA IMI Information Technology 25/50 Index, holding 294 stocks across the technology sector. Its largest positions are Nvidia Corp (NASDAQ:NVDA) at 18.25%, Apple Inc (NASDAQ:AAPL) at 15.41%, and Microsoft Corp (NASDAQ:MSFT) at 10.07%. The fund launched in October 2013 and, like VGT, is nearly 98% weighted to technology, with small allocations to industrials and financial services. There are no leverage, currency hedging, or ESG quirks.

VGT is similarly concentrated: 98% in technology, with top holdings in NVIDIA Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT), though it owns slightly more companies at 310. Both funds provide broad, cap-weighted exposure to U.S. tech giants, with minimal sector or holdings differences.

For more guidance on ETF investing, check out the full guide at this link.

## What this means for investors

When two ETFs hold nearly identical technology stocks in similar weights ,the real difference is how they are managed, not what they invest in. That is the case with the Vanguard Information Technology ETF and the Fidelity MSCI Information Technology Index ETF.

Both funds are dominated by the same group of mega-cap companies, with Nvidia, Apple, and Microsoft accounting for a substantial portion of returns. Their broader holdings are also closely aligned, which keeps performance differences minimal over time. The main distinctions are cost and scale. FTEC charges a slightly lower fee, while VGT’s larger size and heavier trading volume can support tighter spreads and smoother execution.

For investors, the choice is less about different technology exposure, but about finding the most efficient way to invest in it. A lower expense ratio can benefit long-term holders, while greater liquidity may matter more for larger positions or frequent trading. In practice, both funds deliver nearly the same portfolio, so the decision comes down to whether cost or trading efficiency carries more weight for you.

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_\*Stock Advisor returns as of March 26, 2026._

_Eric Trie has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool has a disclosure policy._

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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