Which Is the Better Tech ETF, Fidelity's FTEC or State Street's XLK?

Robert Izquierdo, The Motley Fool

Fri, May 8, 2026 astatine 9:19 AM CDT 4 min read

The State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) and Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) supply low-cost vulnerability to American tech, differing chiefly successful their breadth of holdings and concentration.

Investors looking for dense vulnerability to bundle and semiconductor giants often crook to these 2 manufacture titans. While they overlap importantly successful their apical positions, FTEC tracks a broader scale than XLK, which limits its beingness to exertion companies wrong the S&P 500.

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.

Both funds transportation a 0.08% disbursal ratio, making them highly businesslike options for assemblage exposure.

Performance & hazard examination

What's wrong

The Fidelity MSCI Information Technology Index ETF holds 294 companies, including Nvidia (NASDAQ:NVDA) astatine 18%, Apple (NASDAQ:AAPL) astatine 15%, and Microsoft (NASDAQ:MSFT) astatine 10%. It tracks a wide scale and was launched successful 2013. Its portfolio contains 98% exertion and 1% industrials, and it has paid a trailing-12-month full dividend of $0.95 per share.

The State Street Technology Select Sector SPDR ETF is much concentrated with 73 holdings and was launched successful 1998. Its largest positions see Nvidia astatine 15%, Apple astatine 12%, and Microsoft astatine 10%. It maintains a 99% exertion allocation with negligible concern vulnerability and has a trailing-12-month full dividend of $0.76 per share.

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