If you’re deciding between Fidelity MSCI Information Technology Index ETF (NYSEARCA:FTEC) and Vanguard Information Technology Index Fund ETF (NYSEARCA:VGT), the choice looks like a coin flip. Both track the same MSCI USA IMI Information Technology 25/50 Index. Both hold roughly the same 300-plus stocks in nearly the same weights. Both have delivered essentially identical returns over the past decade. The real question is which one leaks less of your money on the way to the same destination, and where the tie-breakers actually live.
The Same Bet, Priced Differently
Both funds are pure plays on U.S. large- and mid-cap technology. The 25/50 capping methodology means no single stock can exceed 25% of the index, and names above 5% can’t collectively exceed 50%. That mechanic keeps NVIDIA (17.97%), Apple (14.36%), and Microsoft (9.53%) from swallowing the fund whole, but the top three still represent roughly 41.9% of net assets. That’s the implicit bet: you’re wagering that megacap tech, and the AI capex cycle powering it, keeps compounding.
The 2026 outlook camp is split on whether that bet still pays. Vanguard’s own house view warns that tech-heavy U.S. growth stocks face “muted expected returns” because earnings expectations are already elevated. Franklin Templeton is more constructive, arguing “US equity returns, including in the leading information technology sector, should remain solid.” Either way, FTEC and VGT will move together. What separates them is cost and plumbing.
Where the Cost Difference Actually Lives
FTEC charges an expense ratio of 0.084%. VGT charges 0.09%. On a $100,000 position, that’s a difference of about $6 a year. It’s real, but it’s not the reason to choose one over the other.
The bigger structural gap is scale. VGT holds roughly $169.2 billion in net assets. FTEC holds $17.89 billion. VGT trades tighter bid-ask spreads and handles institutional-size orders without hiccups. FTEC is plenty liquid for retail investors but it’s a smaller pond.
How the Track Records Line Up
Performance has been a photo finish. Over the trailing year, FTEC returned 39.08% against VGT’s 38.57%. Year-to-date through July 2, FTEC gained 22.16% versus VGT’s 21.94%. Stretch it out five years and FTEC produced 137.34% compared with VGT’s 134.83%. Over ten years, VGT actually edges ahead at 835.27% against FTEC’s 820.25%. The gaps are trivial: these are effectively the same fund with different labels.
The Practical Comparison
| Metric | FTEC | VGT |
|---|---|---|
| Expense ratio | 0.084% | 0.09% |
| Net assets | $17.9B | $169.2B |
| Benchmark | MSCI USA IMI IT 25/50 | MSCI USA IMI IT 25/50 |
| Share price | $273.89 | $114.64 |
| 5-year return | 137.34% | 134.83% |
The Verdict
FTEC is the cheaper fund on paper and the more accessible one for investors already inside the Fidelity ecosystem, where fractional shares and clean integration matter. VGT is the better choice for anyone building a large position, using options, or valuing the depth that comes with a $169 billion asset base. For long-term buy-and-hold investors, VGT’s liquidity edge and Vanguard’s tax-efficient share-class heritage are worth weighing. FTEC’s cost advantage may matter more for investors who custody at Fidelity and want the last basis point of cost savings, or who expect to trade the position rather than hold it. Either way, you’re buying the same tech bet. Just pick the wrapper that fits your brokerage.
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