FTEC vs SMH
FTEC vs SMH
Fidelity MSCI Information Technology Index ETF vs VanEck Semiconductor ETF
Quick Verdict
FTEC has a lower expense ratio. SMH delivered stronger 1-year returns. FTEC offers more diversification with 262 holdings.
Side-by-Side Comparison
| Metric | FTEC | SMH | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.35% | |
| AUM | $21.0B | $67.5B | |
| Dividend Yield | 0.35% | 0.17% | |
| Holdings | 270 | 27 | |
| YTD Return | +28.81% | +56.09% | |
| 1Y Return | +41.15% | +100.78% | |
| 3Y Return (annualized) | +32.21% | +56.80% | |
| 5Y Return (annualized) | +19.56% | +35.06% | |
| Volatility (annualized) | 19.7% | 31.4% | |
| Max Drawdown | -35.0% | -85.5% | |
| Fund Family | Fidelity Investments (US) | VanEck | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Dec 20, 2011 |
FTEC vs SMH Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and VanEck Semiconductor ETF (SMH) is a ETF from VanEck. Over the past year FTEC returned +41.15% while SMH returned +100.78%. Year to date, FTEC is up 28.81% versus a gain of 56.09% for SMH.
Over three years, FTEC compounded at +32.21% per year against +56.80% for SMH; over five years the annualized figures are +19.56% and +35.06% respectively. Across the full 13-year window we track, FTEC has the edge at +21.45% annualized vs +11.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMH has been the more volatile fund, with annualized monthly volatility of 31.4% compared with 19.7% for FTEC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.0% for FTEC and -85.5% for SMH. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTEC charges 0.08% per year while SMH charges 0.35%. On a $10,000 position that is $8 vs $35 annually, a gap of $27 per year that compounds over a long holding period. On income, FTEC currently yields 0.35% against 0.17% for SMH.
Holdings Overlap
FTEC and SMH share 20 holdings out of 267 unique holdings combined, representing a 35.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTEC | Weight in SMH | Difference |
|---|---|---|---|
| NVDA | 18.25% | 20.70% | 2.45% |
| AVGO | 4.32% | 6.20% | 1.88% |
| MU | 2.01% | 5.51% | 3.50% |
| AMAT | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
| KLAC | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
| ADI | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
See all 10 holdings FTEC shares with SMH Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FTEC or SMH?
FTEC has an expense ratio of 0.08% while SMH charges 0.35%. FTEC is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, FTEC or SMH?
Over the past year FTEC returned +41.15% vs +100.78% for SMH, so SMH leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.45% vs +11.40% for SMH. Past performance does not guarantee future results.
Which is riskier, FTEC or SMH?
SMH has been the more volatile fund at 31.4% annualized versus 19.7% for FTEC. Worst drawdown: FTEC -35.0% vs SMH -85.5%.
Should I hold both FTEC and SMH?
FTEC and SMH have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTEC and SMH?
FTEC and SMH share 20 common holdings with a 35.2% weight overlap. Combined, they hold 267 unique securities.
Which pays a higher dividend, FTEC or SMH?
FTEC yields 0.35% while SMH yields 0.17%, so FTEC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.