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Vanguard Information Technology ETF vs Fidelity MSCI Information Technology Index ETF
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Comparative Analysis
FTEC wins due to slightly stronger momentum and a lower expense ratio, despite VGT's longer track record and larger net assets. Both ETFs offer highly concentrated exposure to the technology sector, with FTEC showing a marginal edge in recent performance and cost efficiency. Investors seeking broad tech exposure will find both suitable, but FTEC's slightly better technical indicators and lower fees make it the preferred choice for new capital. While VGT boasts a larger net asset base and a longer history, FTEC has demonstrated slightly superior momentum across key technical indicators and offers a more cost-effective investment. The decision hinges on prioritizing slightly better performance metrics and lower costs (FTEC) versus a larger, more established fund (VGT). For new investments, FTEC's current trajectory and expense ratio present a more compelling case.
Key Differentiator
The key differentiator between FTEC and VGT lies in their expense ratios and current momentum indicators. FTEC offers a lower expense ratio at 0.00084 compared to VGT's 0.0009, making it more cost-effective over the long term. Additionally, FTEC shows slightly stronger technical momentum, evidenced by a higher MACD value and slightly better year-to-date returns. While VGT is a larger and more established fund, FTEC's combination of lower costs and marginally superior current performance gives it a competitive edge.
Joint Outlook
The outlook for both FTEC and VGT remains positive, driven by the continued innovation and growth within the technology sector. As technology ETFs, their performance will closely mirror the sector's trajectory, influenced by factors such as AI development, cloud computing expansion, and semiconductor demand. Both ETFs are currently exhibiting strong upward momentum, suggesting this trend is likely to continue in the near term. In a bullish scenario, FTEC could continue its outperformance due to its lower expense ratio and slightly stronger technicals, potentially pushing towards its 52-week high. VGT, benefiting from its larger scale, would likely track the sector closely, offering steady growth. A bearish scenario would involve a sector-wide correction, where both ETFs would experience declines, though FTEC's lower fees might provide a marginal cushion. The key will be the sector's ability to sustain its growth amidst potential macroeconomic headwinds or regulatory scrutiny.
Price Analysis Comparison
Asset Metrics
| Metric | VGT | FTEC |
|---|---|---|
| 52 Week Range | $83.09 - $126.00 | $198.17 - $300.79 |
| Prev. Close | $119.63 | $285.48 |
| 24h Volume | 26.50K | 761 |
Instead, their 'valuation' is assessed through their price action relative to historical ranges and moving averages. FTEC is currently trading at $289.955, closer to its 52-week high of $300.79001 than its low of $198.17000. VGT is priced at $121.425, also near its 52-week high of $126 and further from its low of $83.089996. Both ETFs are exhibiting strong upward price momentum, indicating investor confidence in the technology sector. Both ETFs are trading above their 50-day and 200-day moving averages, confirming bullish trends. FTEC's price is currently $9.105 above its 50-day SMA and $40.932 above its 200-day SMA, while VGT's price is $3.775 above its 50-day SMA and $17.088 above its 200-day SMA. FTEC's greater distance from its longer-term moving averages suggests a stronger current uptrend.
Market Performance
| Metric | VGT | FTEC |
|---|---|---|
| Volatility (30D) | 26.84% | 26.95% |
| 24h Range | $120.68 - $121.70 | $289.22 - $289.96 |
| Market Strength (RSI) | 58.7 | 58.9 |
| Trend (SMA 50) | Bullish | Bullish |
Both assets exhibit similar volatility levels (~27%). Market momentum is currently Bullish for both.
Technical Indicators
| Indicator | VGT | FTEC |
|---|---|---|
| RSI (14) | 58.73 | 58.88 |
| 50-Day MA | $117.65 | $280.85 |
| 200-Day MA | $104.34 | $249.02 |
FTEC exhibits slightly stronger momentum signals compared to VGT. FTEC's CCI is 80.74, indicating strong buying pressure, and its RSI is 58.88, suggesting healthy upward momentum without being overbought. Its Stochastic reading is 90.39, nearing overbought territory but confirming strong recent performance. VGT's CCI is 75.64, also indicating strong buying interest, with an RSI of 58.73 and a Stochastic of 89.67, both very close to FTEC's readings. Both ETFs are trading well above their 50-day and 200-day moving averages, confirming a bullish trend. FTEC's MACD of 1.89 suggests a stronger positive momentum than VGT's MACD of 0.79. While both are in uptrends, FTEC's slightly more favorable technical indicators, particularly its higher MACD value, give it a marginal edge in current momentum.
AI Analyst Sentiment
Technical rating — based on current price action versus moving averages and momentum. This measures short-term chart trend, not analyst opinion or company fundamentals.
VGT
Technical Score: 78/100
FTEC
Technical Score: 78/100
As ETFs, FTEC and VGT do not have analyst ratings or median price targets in the same way individual stocks do. Sentiment is therefore inferred from price action, technical indicators, and fund flows, which are not explicitly provided in the data beyond price and technicals. However, the strong positive technical readings across both ETFs, including high CCI and RSI values, suggest a generally positive market sentiment towards technology sector investments. The consistent upward price trends and the fact that both ETFs are trading near their 52-week highs indicate strong investor demand and positive sentiment. The slight outperformance in FTEC's year-to-date return and its marginally stronger technical indicators could suggest a slightly more positive current sentiment towards its specific holdings or structure.
Risk Stratification
| Metric | VGT | FTEC |
|---|---|---|
| Sharpe Ratio | 0.81 | 0.82 |
The primary risk for both FTEC and VGT is their extreme concentration in the technology sector. A significant downturn in technology stocks, driven by regulatory changes, macroeconomic shifts, or sector-specific headwinds, would disproportionately impact these ETFs. Furthermore, as growth-oriented investments, they are more sensitive to rising interest rates, which can reduce the present value of future earnings for technology companies. FTEC's slightly smaller net assets ($21.25 billion) compared to VGT ($169.38 billion) could imply slightly lower liquidity, although both are substantial. VGT's longer inception date (2004 vs. 2013 for FTEC) means it has navigated more market cycles, potentially offering a more tested track record. However, FTEC's lower expense ratio ($8.40 vs $9.00 per $10,000) reduces long-term risk by preserving more of the investor's capital.
Comparative ProTips
- Prioritize FTEC for new investments due to its lower expense ratio and slightly superior current momentum.
- Monitor technology sector news and earnings reports closely, as both ETFs are heavily concentrated in this single industry.
- Consider VGT if a longer track record and larger fund size are primary decision factors, despite its slightly higher costs.
Monte Carlo Projection (10yr)
Actionable Trade Plans
Compare entry, exit, and risk management levels for both assets
Select Your Trade Bias
Risk Tolerance
Conservative
3%
Aggressive
Portfolio Value
$
✎
Position Size: $200 - $300 per asset
VGT
Current: $121.43
ENTRY ZONES
Conservative
$115.35
Aggressive
$121.43
RISK MANAGEMENT
STOP LOSS
$111.89
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$121.12
+10%
$126.89
+15%
$132.66
FTEC
Current: $289.96
ENTRY ZONES
Conservative
$275.46
Aggressive
$289.96
RISK MANAGEMENT
STOP LOSS
$267.19
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$289.23
+10%
$303.00
+15%
$316.78
Calculate Your Trade
Disclaimer
This comparison involves assets with varying risk profiles. The content is for educational purposes only. Identifying the stronger asset is based on relative strength (RS) and technical convergence. Past correlation does not guarantee future lockstep movement. Trading involves risk of loss. Note: The AI favored FTEC based on price momentum. This is valid for the specified timeframe only.
Frequently Asked Questions
Which ETF is a better buy, FTEC or VGT?+
FTEC is a slightly better buy due to its lower expense ratio (0.00084 vs 0.0009) and marginally stronger current momentum indicators, including a higher MACD value and YTD return. VGT offers a larger net asset base and longer track record, but FTEC's cost efficiency and performance edge make it more attractive for new capital.
What are the key risks for FTEC and VGT?+
The primary risk for both ETFs is their high concentration in the technology sector. A downturn in tech could severely impact performance. FTEC's smaller net assets might imply slightly lower liquidity compared to VGT, though both are substantial.
How do FTEC and VGT compare in terms of cost?+
FTEC is more cost-effective with an expense ratio of 0.00084 ($8.40 per $10,000 invested), while VGT has an expense ratio of 0.0009 ($9.00 per $10,000 invested). FTEC saves investors slightly more on fees.
What is the sector exposure of FTEC and VGT?+
Both FTEC and VGT offer highly concentrated exposure to the technology sector, with Technology comprising over 99% of their respective portfolios. This means their performance is closely tied to the overall health and trends within the tech industry.
How do the trailing returns of FTEC and VGT compare?+
Across most timeframes (YTD, 1-year, 3-year, 5-year, 10-year), FTEC generally shows slightly higher fund returns than VGT, although both significantly outperform their category returns in longer periods. For example, FTEC's 1-year return is 0.39342 versus VGT's 0.38985.
What is the dividend yield for FTEC and VGT?+
Both FTEC and VGT offer similar dividend yields. FTEC's yield is approximately 0.00346 (0.35%), and VGT's yield is approximately 0.00357 (0.36%). These yields are modest and reflect the growth-oriented nature of the technology sector.
Which ETF has larger net assets?+
VGT has significantly larger net assets, standing at $169.38 billion, compared to FTEC's $21.25 billion. This larger asset base for VGT may indicate greater investor adoption and potentially higher liquidity.