FTEC vs VYM
FTEC vs VYM
Fidelity MSCI Information Technology Index ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FTEC delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FTEC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $21.0B | $79.0B | |
| Dividend Yield | 0.35% | 2.86% | |
| Holdings | 270 | 568 | |
| YTD Return | +22.09% | +13.82% | |
| 1Y Return | +34.51% | +24.08% | |
| 3Y Return (annualized) | +29.52% | +17.72% | |
| 5Y Return (annualized) | +18.39% | +12.13% | |
| Volatility (annualized) | 19.7% | 14.6% | |
| Max Drawdown | -35.0% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Nov 10, 2006 |
FTEC vs VYM Performance
Fidelity MSCI Information Technology Index ETF (FTEC) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FTEC returned +34.51% while VYM returned +24.08%. Year to date, FTEC is up 22.09% versus a gain of 13.82% for VYM.
Over three years, FTEC compounded at +29.52% per year against +17.72% for VYM; over five years the annualized figures are +18.39% and +12.13% respectively. Across the full 13-year window we track, FTEC has the edge at +20.96% annualized vs +6.98%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTEC charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FTEC currently yields 0.35% against 2.86% for VYM.
Holdings Overlap
FTEC and VYM share 23 holdings out of 797 unique holdings combined, representing a 11.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTEC | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 4.32% | 6.47% | 2.15% |
| CSCO | 1.72% | 1.39% | 0.33% |
| IBM | 1.25% | 0.98% | 0.27% |
| TXN | Pro | Pro | Pro |
| ADI | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| 2345:TW | Pro | Pro | Pro |
| GLW | Pro | Pro | Pro |
| STX | Pro | Pro | Pro |
| DELL | Pro | Pro | Pro |
See all 10 holdings FTEC shares with VYM 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 VYM?
FTEC has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, FTEC or VYM?
Over the past year FTEC returned +34.51% vs +24.08% for VYM, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +20.96% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, FTEC or VYM?
FTEC has been the more volatile fund at 19.7% annualized versus 14.6% for VYM. Worst drawdown: FTEC -35.0% vs VYM -58.8%.
Should I hold both FTEC and VYM?
FTEC and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTEC and VYM?
FTEC and VYM share 23 common holdings with a 11.5% weight overlap. Combined, they hold 797 unique securities.
Which pays a higher dividend, FTEC or VYM?
FTEC yields 0.35% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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