Top Tech ETFs for 2026: Can FTEC's Lower Costs Outperform IYW's Concentration?

Sarah Sidlow, The Motley Fool

Thu, July 9, 2026 astatine 7:06 AM CDT 4 min read

The Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) offers little costs, portion the iShares U.S. Technology ETF (NYSEMKT:IYW) provides higher caller returns with a much concentrated exertion portfolio.

Investors seeking wide vulnerability to the home exertion assemblage often measurement these 2 heavyweights. While some funds people the aforesaid country of the market, they travel antithetic underlying indexes, resulting successful variations successful cost, banal count, and caller performance. This investigation compares their portfolios to assistance clarify which whitethorn amended suit a semipermanent maturation strategy.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Fidelity money is importantly much affordable, charging conscionable 0.08% annually compared to the 0.38% interest for the iShares fund. This outgo spread tin interaction semipermanent compounding. Additionally, income-oriented investors whitethorn enactment the Fidelity money offers a somewhat higher organisation output of 0.40%.

Performance & hazard examination

What's wrong

Fidelity MSCI Information Technology Index ETF tracks the concern returns of the MSCI USA IMI Information Technology 25/50 Index. Its holdings number sits astatine 288, providing a wider scope into mid- and small-cap names than its counterpart. Its largest positions see Nvidia astatine 16.1%, Apple astatine 14.3%, and Microsoft astatine 8.4%. The portfolio is astir wholly focused connected the exertion assemblage and was launched successful 2013. Fidelity MSCI Information Technology Index ETF has paid $1.00 per stock implicit the trailing 12 months, which connected its caller ~$273.89 stock terms works retired to a 0.40% yield.

The iShares U.S. Technology ETF seeks results corresponding to the Russell 1000 Technology RIC 22.5/45 Capped Index with 149 holdings. This much concentrated attack gives higher weighting to its largest members. Its largest positions see Nvidia astatine 13.1%, Apple astatine 12.9%, and Microsoft astatine 8.8%. While its circumstantial assemblage breakdown is not reported, it likewise concentrates connected home exertion leaders. It was launched successful 2000. iShares U.S. Technology ETF has paid $0.26 per stock implicit the trailing 12 months, which connected its caller ~$243.48 stock terms works retired to a 0.10% yield.