4 days ago
8
Jake Lerch, The Motley Fool
Sat, December 20, 2025 astatine 2:31 PM CST 5 min read
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XLK is acold larger and much liquid than FTEC, though some complaint identical fees and way the U.S. exertion sector
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XLK’s apical holdings are much concentrated, portion FTEC holds astir 300 names for broader diversification
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Recent returns and dividend output person somewhat favored XLK, but hazard and assemblage vulnerability stay similar
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These 10 stocks could mint the adjacent question of millionaires ›
The State Street Technology Select Sector SPDR ETF (XLK) (NYSEMKT:XLK) and the Fidelity MSCI Information Technology Index ETF (FTEC) (NYSEMKT:FTEC) are some technology-focused ETFs with galore similarities and immoderate cardinal differences. XLK is overmuch larger and much liquid than FTEC, though some funds complaint the aforesaid debased interest and people the U.S. exertion sector.
Both FTEC and XLK connection low-cost vulnerability to large-cap U.S. exertion stocks, but they disagree successful portfolio breadth, trading volume, and attraction of holdings. This examination highlights cardinal factors to see if you are weighing a technology-focused exchange-traded money (ETF).
| Issuer | Fidelity | SPDR |
| Expense ratio | 0.08% | 0.08% |
| 1-yr instrumentality (as of Dec. 12, 2025) | 18.5% | 20.7% |
| Dividend yield | 0.4% | 0.5% |
| Beta | 1.24 | 1.21 |
| AUM | $16.7 billion | $95.6 billion |
Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.
Both funds are arsenic affordable with a 0.08% disbursal ratio, but XLK has delivered a marginally higher trailing one-year instrumentality and a somewhat larger dividend yield. The outgo quality is negligible, making output and liquidity the superior differentiators for fee-conscious investors.
| Max drawdown (5 y) | (34.95%) | (33.55%) |
| Growth of $1,000 implicit 5 years | $2,243 | $2,303 |
XLK focuses connected the S&P 500’s exertion sector, holding 70 companies with a dense tilt toward the largest names. Its 3 biggest positions—Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT)—account for implicit a 3rd of assets. XLK is 1 of the oldest assemblage ETFs, with a 27-year way grounds and $92.8 cardinal successful assets nether absorption (AUM), making it 1 of the astir liquid tech funds available.
FTEC covers a broader portion of U.S. tech with 294 holdings, including immoderate smaller companies extracurricular the S&P 500. Its apical three—Nvidia, Microsoft, and Apple—also dominate, with Nvidia having a higher value but Microsoft and Apple having little idiosyncratic weights. Sector vulnerability is astir identical, though FTEC whitethorn connection other diversification for those seeking a much broad exertion portfolio.
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