FTEC vs VYM

Quick Verdict

VYM has a lower expense ratio. FTEC delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: FTECMore Diversified: VYM

Side-by-Side Comparison

MetricFTECVYMWinner
Expense Ratio0.08%0.04%
AUM$21.0B$79.0B
Dividend Yield0.35%2.86%
Holdings270568
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 FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 21, 2013Nov 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

11.5%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

StockWeight in FTECWeight in VYMDifference
AVGO4.32%6.47%2.15%
CSCO1.72%1.39%0.33%
IBM1.25%0.98%0.27%
TXNProProPro
ADIProProPro
QCOMProProPro
2345:TWProProPro
GLWProProPro
STXProProPro
DELLProProPro
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.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.

See inside every ETF you own
$29/moCancel anytime.
Try FundXLS →