What is the main difference between FTEC and QQQ regarding sector exposure?

FTEC is a pure technology sector ETF, meaning it invests exclusively in companies classified within the information technology industry. QQQ, categorised as Large Growth, tracks the Nasdaq-100, which includes a broader basket of large-cap companies. While QQQ has significant technology exposure, it also holds major firms from other sectors. This makes QQQ a more diversified growth fund compared to FTEC's focused sector strategy. The specific index methodologies for both are not available.

How do the expense ratios of FTEC and QQQ compare?

FTEC has an annual expense ratio of 0.08%, whereas QQQ has a higher expense ratio of 0.18%. The difference between the two funds is 0.10 percentage points. Expense ratios represent the annual fee charged by the fund manager to operate the ETF, deducted from the fund's assets. Lower fees generally mean that investors keep more of their gross returns. Since both funds are ETFs, these fees are reflected in the tracking error and overall cost of ownership over time.

How is the data for these ETFs sourced and updated?

The comparison data for FTEC and QQQ is based on information available as of 2026-09-22 from Yahoo Finance. For both funds, the specific index tracked is listed as 'not available' in the provided dataset, as are the precise sector weight breakdowns. Invesco QQQ is categorized as Large Growth, while FTEC is categorized as Technology. These categorizations are fixed attributes for this page and help users understand the general nature of each fund without requiring detailed index methodology data.

How do net assets and liquidity compare between FTEC and QQQ?

QQQ is significantly larger, with net assets of $484.3 billion, compared to FTEC's $21.3 billion. Large net assets often correlate with high trading volume and liquidity, making it easier to buy and sell shares without impacting the price. Both funds provide substantial liquidity for institutional and retail investors, but QQQ's massive scale usually results in tighter bid-ask spreads. The difference in size reflects QQQ's longer history since 1999 compared to FTEC's inception in 2013.

What is the dividend yield difference between the two funds?

As of the provided data, FTEC has a dividend yield of 0.37%, while QQQ offers a slightly higher yield of 0.41%. The difference is 0.04 percentage points. It is important to understand that dividend yields in ETFs fluctuate based on the performance and payout decisions of the underlying holdings. While the yields appear similar, QQQ's broader growth-oriented portfolio may include companies with different distribution policies compared to FTEC's concentrated technology sector holdings.

How concentrated are the top holdings in FTEC and QQQ?

Both funds exhibit concentration risk. For FTEC, the top three holdings (NVDA, AAPL, MSFT) comprise 45.4% of total assets, a very high level of concentration. QQQ's top five holdings (NVDA, AAPL, MSFT, MU, AMZN) account for 31.47% of total assets. While QQQ is more diversified across its top five names, both funds rely heavily on these major tech and growth giants. Investors should be aware that performance in either fund is closely tied to these specific stocks.

Which top-10 holdings do FTEC and QQQ share?

FTEC and QQQ share five companies in their respective top-10 holdings: NVDA, AAPL, MSFT, MU, and AMD. However, the weightings differ significantly. In FTEC, the top three holdings comprise 45.4% of total assets, whereas the top five holdings account for 31.47% of total assets. This overlap highlights the dominant influence of mega-cap semiconductor and software giants in both portfolios. Despite the shared names, the underlying index methodologies are not available.

How does fund inception date impact investment history?

Inception date marks when the ETF began trading. FTEC was launched on October 21, 2013, giving it a track record of over a decade. QQQ has a much longer history, with an inception date of March 10, 1999. This means QQQ has experienced more market cycles, including the Dot-com bubble and the 2008 financial crisis. A longer track record can provide investors with more historical data for backtesting, although past performance is never a guarantee of future results.

What are the unique characteristics of QQQ's top holdings?

QQQ's top holdings include companies that may not be classified strictly as Information Technology. The top ten includes AMZN (Consumer Discretionary), GOOGL (Communication Services), META (Communication Services), and TSLA (Consumer Discretionary). This demonstrates why QQQ offers broader exposure than pure tech ETFs like FTEC, which focuses on tech-specific names such as AVGO, INTC, and CSCO in its top ten list, reflecting its sector mandate.

How do the fee differences impact long-term costs?

The expense ratio difference between QQQ and FTEC is 0.10 percentage points. While this seems small, fees compound over time. For every £1,000 invested, the cost difference is roughly £1 per year before compounding effects. The expense ratio for QQQ is 0.18%, while FTEC offers a lower 0.08%. Over a long holding period, this difference can slightly reduce net returns. However, investors must balance fee savings against the broader diversification and different liquidity profiles provided by QQQ's massive $484.3 billion net assets.

What is the purpose of this comparison?

This page is for educational purposes only and does not constitute financial advice. It compares the fundamental data of FTEC and QQQ based on figures from Yahoo Finance (fetched 2026-09-22). Key metrics include expense ratios (0.08% for FTEC vs 0.18% for QQQ), net assets ($21.3 billion vs $484.3 billion), and dividend yields (0.37% vs 0.41%). Investors should consult a qualified professional before making investment decisions and verify current data, as fund metrics such as holdings and assets change regularly.

FTEC vs QQQ

Two funds, one decision: we compare cost, performance and what each ETF actually holds in November 2026.

Compare Fidelity MSCI Information Tech ETF and Invesco QQQ Trust Series 1. Explore their expense ratios, top holdings, dividend yields and how each tracks its market. FTEC holds $21.3 billion; QQQ holds $484.3 billion. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FTEC

Metric

QQQ

0.08%

Expense Ratio

0.18%

0.37%

Dividend Yield

0.41%

$21.25B

Net Assets

$484.28B

298

Holdings

104

Oct 21, 2013

Inception Date

Mar 10, 1999

–

Index Tracked

–

Technology

Fund Category

Large Growth

FTEC costs about $10.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FTEC	QQQ
NVDANVIDIA Corporation	17.49%	8.52%
AAPLApple Inc.	16.69%	7.82%
MSFTMicrosoft Corporation	11.22%	5.81%
MUMicron Technology, Inc.	4.25%	5.01%
AMDAdvanced Micro Devices, Inc.	3.41%	3.99%

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Investment Analysis

FTEC

Pros

The Fidelity MSCI Information Tech ETF offers a lower expense ratio of 0.08% compared to broader market alternatives.
With $21.3 billion in net assets, the fund provides substantial liquidity for institutional and retail investors.
The dividend yield of 0.37% reflects a focus on growth companies typical of the technology sector.

Considerations

Concentration risk is high as the top three holdings comprise 45.4% of total assets.
The sector weights are not available, limiting transparency into specific sub-sector allocations within technology.
The index methodology is not available, making it difficult to assess the precise screening criteria.

QQQ

Pros

Invesco QQQ Trust features extensive liquidity with $484.3 billion in net assets and a long track record.
The fund provides broader exposure than pure tech ETFs by including non-tech mega-cap growth stocks.
A dividend yield of 0.41% is slightly higher than comparable technology-specific funds due to its diverse holdings.

Considerations

The expense ratio of 0.18% is relatively higher compared to lower-cost sector-specific alternatives like FTEC.
Concentration remains a risk as the top five holdings account for 31.47% of total assets.
The index methodology is not available, obscuring the specific rebalancing and eligibility rules applied.

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About FTEC and QQQ

FTEC (FTEC)

The Fidelity MSCI Information Tech ETF offers investors a cost-effective way to gain exposure to the U.S. technology sector. With an expense ratio of just 0.08%, this fund tracks a broad index of American companies involved in software, hardware, and services. Holding 298 different stocks, it provides diversified access to the sector's largest players as well as smaller emerging firms. Since its inception in October 2013, the fund has amassed substantial assets, currently exceeding USD 21 billion. Investors should note that while the fund offers low fees and wide coverage, its performance is directly tied to the technology sector's cyclical nature and growth prospects. Like all investments, values can rise and fall.

QQQ (QQQ)

Invesco QQQ Trust Series 1 (QQQ) is a widely traded exchange‑traded fund that seeks to track the Nasdaq‑100 Index, offering concentrated exposure to large non‑financial companies listed on the Nasdaq — think technology, consumer and biotech leaders. It provides a convenient way to gain growth-oriented exposure to a basket of big-cap, often high-growth names, with intraday liquidity like a stock. Investors should know QQQ is relatively concentrated in a handful of large issuers and sectors, which can amplify both upside and downside versus broader-market funds. It pays modest dividends and typically has higher volatility than diversified market-cap indices. As with any ETF, past performance does not predict future returns; values can fall as well as rise. This content is educational and not personalised advice — consider your risk tolerance, investment horizon and diversification needs before investing, and consult a regulated adviser for tailored guidance.

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FTEC vs QQQ

Fund Snapshot