FTEC vs VXUS

Quick Verdict

VXUS has a lower expense ratio. FTEC delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: FTECMore Diversified: VXUS

Side-by-Side Comparison

MetricFTECVXUSWinner
Expense Ratio0.08%0.05%
AUM$21.0B$156.5B
Dividend Yield0.35%2.60%
Holdings2708,747
YTD Return+27.44%+13.57%
1Y Return+40.41%+28.78%
3Y Return (annualized)+31.38%+18.63%
5Y Return (annualized)+19.34%+9.05%
Volatility (annualized)19.7%15.1%
Max Drawdown-35.0%-39.9%
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 21, 2013Jan 26, 2011

FTEC vs VXUS Performance

Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FTEC returned +40.41% while VXUS returned +28.78%. Year to date, FTEC is up 27.44% versus a gain of 13.57% for VXUS.

Over three years, FTEC compounded at +31.38% per year against +18.63% for VXUS; over five years the annualized figures are +19.34% and +9.05% respectively. Across the full 13-year window we track, FTEC has the edge at +21.36% annualized vs +4.80%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FTEC has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FTEC charges 0.08% per year while VXUS charges 0.05%. On a $10,000 position that is $8 vs $5 annually, a gap of $3 per year that compounds over a long holding period. On income, FTEC currently yields 0.35% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

FTEC and VXUS share 3 holdings out of 8119 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FTECWeight in VXUSDifference
ORCL1.29%0.00%1.29%
2345:TW0.71%0.05%0.66%
BILL0.07%0.00%0.07%

Frequently Asked Questions

Which is cheaper, FTEC or VXUS?

FTEC has an expense ratio of 0.08% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, FTEC or VXUS?

Over the past year FTEC returned +40.41% vs +28.78% for VXUS, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.36% vs +4.80% for VXUS. Past performance does not guarantee future results.

Which is riskier, FTEC or VXUS?

FTEC has been the more volatile fund at 19.7% annualized versus 15.1% for VXUS. Worst drawdown: FTEC -35.0% vs VXUS -39.9%.

Should I hold both FTEC and VXUS?

FTEC and VXUS have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTEC and VXUS?

FTEC and VXUS share 3 common holdings with a 0.1% weight overlap. Combined, they hold 8119 unique securities.

Which pays a higher dividend, FTEC or VXUS?

FTEC yields 0.35% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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