What do expense ratios tell us about these funds?

The expense ratio is an annual management fee expressed as a percentage of your investment. In this comparison, both FTEC and XLK carry an expense ratio of 0.08%. This indicates that the direct holding cost for these two specific exchange-traded funds is currently identical. Investors use this metric to assess operational efficiency. Since the cost is the same, fees should not be the primary differentiator when analysing these particular funds.

What is the impact of compounding on low fees?

Even small differences in expense ratios can accumulate over long periods due to the power of compounding. This occurs when investment returns generate their own earnings over time. In the provided data, both funds have an identical 0.08% fee. While we cannot quantify the impact of a difference because the fees are equal, it is useful to understand that in scenarios where costs vary, lower fees typically preserve more capital for the investor over time.

How do the track records compare?

Track record refers to the history of a fund's performance. XLK was launched on December 16, 1998, giving it an extensive history spanning nearly three decades. FTEC was launched later, on October 21, 2013. While FTEC still possesses a significant track record of over a decade, XLK provides data covering more market cycles. Investors reviewing these funds can analyse how each has navigated different economic environments based on their respective inception dates.

What index or strategy do these funds follow?

Both funds are classified as technology ETFs. However, the specific index tracked by each fund is listed as not available in the provided data. This means a precise analysis of their distinct methodologies is currently impossible based on the available figures. Investors typically look for the underlying index to understand the strategy, but without this information, one must rely on other metrics such as holdings, sector classification, and expense ratios to evaluate the fund's approach.

How concentrated are the portfolios of these ETFs?

Both funds display significant concentration in their largest positions, which are top mega-cap technology companies. For FTEC, Nvidia represents 17.49% and Apple 16.69% of the portfolio. In comparison, XLK holds 15.53% in Nvidia and 14.16% in Apple. This concentration means the funds' performance is heavily linked to these specific companies. Investors should note that while both are diversified technology funds, their outcomes are influenced substantially by a small number of top holdings.

How much overlap exists between the top holdings?

The overlap between these funds is substantial. All ten of the top holdings listed for FTEC are the exact same ten companies found in XLK's top holdings. Specifically, both funds list Nvidia, Apple, Microsoft, Micron, Broadcom, Advanced Micro Devices, Intel, Cisco Systems, Palantir, and Lam Research as their primary positions. This suggests the funds have very similar immediate exposure to the large-cap technology sector, despite potentially different broader index strategies.

Which fund has more assets under management?

Net assets represent the total market value of all the securities held by the fund. XLK has significantly larger net assets, reporting $123.2 billion, whereas FTEC reports $21.3 billion. Generally, a larger fund may benefit from economies of scale regarding operational costs and can have higher trading liquidity. Investors looking for the most widely traded option in this specific comparison would note the higher asset base of the XLK fund compared to the FTEC fund.

What sector weights are available for analysis?

Detailed sector weights are not available in the provided dataset. Consequently, it is impossible to see how much of the portfolio is strictly allocated to specific sub-sectors such as semiconductors, software, or hardware. This lack of granularity means investors cannot compare the precise internal composition breakdowns of the two funds. One must rely on the listed top holdings to infer the sector's general nature, but exact percentage allocations by sub-industry remain unlisted.

How much do these funds pay in dividends?

Dividend yield indicates the annual percentage return generated from dividend payments relative to the share price. XLK offers a dividend yield of 0.43%, while FTEC offers 0.37%. The yield for XLK is slightly higher by 0.06 percentage points based on the provided figures. While the difference is minimal, yield-sensitive investors might prefer the fund with the marginally higher rate, assuming all other factors, such as total return and risk, remain comparable.

Who is the issuer behind these funds?

Both funds are issued by major, well-established financial institutions. FTEC is issued by Fidelity Investments, while XLK is issued by SPDR (State Street Global Advisors). Both are reputable issuers known for managing a wide range of exchange-traded products. Investors often consider the reputation and financial strength of the fund provider when selecting ETFs. In this case, both issuers have a significant presence in the asset management market, providing a sense of operational stability to the respective funds.

What is the purpose of this comparison?

This educational content is designed to help beginners interpret financial metrics and understand the characteristics of specific ETFs. It is strictly for informational purposes and does not constitute financial advice. The comparison relies on data from Yahoo Finance regarding fees, assets, yields, and holdings. It is important to consult with a qualified financial advisor to understand your personal financial situation, risk tolerance, and investment objectives before making any investment decisions.

FTEC vs XLK

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

Compare Fidelity MSCI Information Tech ETF (FTEC) and Technology Sector SPDR (XLK). This page reviews fees, holdings, dividends and how each fund tracks its market, using data on 0.08% expense ratios, assets, yields and shared top holdings; sector weights and index focus are not available. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FTEC

Metric

XLK

0.08%

Expense Ratio

0.08%

0.37%

Dividend Yield

0.43%

$21.25B

Net Assets

$123.19B

298

Holdings

Oct 21, 2013

Inception Date

Dec 16, 1998

–

Index Tracked

–

Technology

Fund Category

Technology

Both funds charge the same annual fee.

Shared Top Holdings

Holding	FTEC	XLK
NVDANVIDIA Corporation	17.49%	15.53%
AAPLApple Inc.	16.69%	14.16%
MSFTMicrosoft Corporation	11.22%	10.59%
MUMicron Technology, Inc.	4.25%	4.39%
AVGOBroadcom Inc.	4.21%	4.90%
AMDAdvanced Micro Devices, Inc.	3.41%	4.78%
INTCIntel Corporation	1.87%	3.15%
CSCOCisco Systems, Inc.	1.70%	2.52%
PLTRPalantir Technologies Inc.	1.51%	2.39%
LRCXLam Research Corporation	1.33%	2.11%

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Investment Analysis

FTEC

Pros

Fidelity offers this technology fund with a low expense ratio of 0.08 percent and substantial net assets of $21.3 billion.
Its inception date is Oct 21 2013 providing over a decade of track record for investors to assess performance.
The fund maintains a dividend yield of 0.37 percent which reflects its underlying portfolio's cash distribution characteristics.

Considerations

The specific index tracked by this Fidelity fund is listed as not available which limits transparency on its methodology.
Sector weights are not available for this fund making it difficult to analyse its precise industry exposure breakdown.
Top holdings include NVDA at 17.49 percent and AAPL at 16.69 percent indicating a significant concentration in large-cap tech.

XLK

Pros

SPDR's Technology Sector ETF boasts massive net assets of $123.2 billion which likely enhances its trading liquidity significantly.
Its inception date of Dec 16 1998 provides an extensive long-term track record for potential investors to evaluate.
The fund offers a slightly higher dividend yield of 0.43 percent compared to some other technology sector ETFs.

Considerations

Like its peer the specific index tracked by this SPDR fund is listed as not available in the data.
Sector weight details are not available preventing a granular analysis of the fund's exposure across various technology sub-industries.
Concentration is evident in top holdings with NVDA at 15.53 percent and AAPL at 14.16 percent dominating the portfolio.

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About FTEC and XLK

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.

XLK (XLK)

Technology Sector SPDR (XLK) is an exchange‑traded fund designed to give investors broad exposure to the US technology sector by tracking a technology‑focused index. It concentrates on large‑capitalisation companies across software, hardware, semiconductors and IT services, so holdings are often dominated by a handful of industry leaders. The ETF is passively managed, typically has a low expense ratio relative to actively managed funds, and can serve as a straightforward way to gain sector exposure without selecting individual stocks. Investors should be aware of sector concentration risk, sensitivity to interest‑rate changes and valuation swings, and the cyclicality of technology spending. XLK is suitable for those seeking long‑term exposure to technology trends but not as a substitute for a diversified portfolio. This is general information only and not personal advice; values can rise and fall and past performance does not predict future returns.

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FTEC vs XLK

Fund Snapshot