Tech ETFs: The Usual Suspects

by

So, here we are. Staring into the abyss of “diversified technology ETFs.” Another day, another desperate attempt to squeeze blood from the silicon stone. They want you to believe these things are different. That this ETF, this carefully constructed basket of hopes and algorithms, will unlock the secrets of the digital age. Bullshit. It’s just another game, rigged by the usual suspects. We’re looking at the iShares US Technology ETF (IYW) and the Fidelity MSCI Information Technology Index ETF (FTEC). Two sides of the same increasingly tarnished coin. They promise exposure. What they deliver is… well, let’s just say my liver sees more genuine diversification.

The Numbers. Because Numbers Never Lie (Until They Do)

Metric IYW FTEC
Issuer iShares Fidelity
Expense ratio 0.38% 0.08%
1-yr return (as of Jan. 27, 2026) 23.85% 20.71%
Dividend yield 0.14% 0.43%
AUM $21 billion $17 billion
Beta (5Y monthly) 1.26 1.28

FTEC, the slightly less greedy parasite, boasts a lower expense ratio and a marginally better dividend yield. A pittance, really. But enough to soothe the consciences of the spreadsheet jockeys. They’ll tell you it’s about “value.” I say it’s about minimizing the damage while the whole thing burns. The AUM figures? Just vanity metrics. Proof that enough suckers are still willing to play.

Risk & Reward: Or, How Much Can You Lose Before You Snap?

Metric IYW FTEC
Max drawdown (5 y) -39.44% -34.95%
Growth of $1,000 over 5 years $2,283 $2,133

The drawdown figures are the real story here. Nearly 40% vanished into the ether at some point. They won’t emphasize that in the marketing materials, of course. They’ll focus on the illusory growth of a thousand bucks. As if that’s going to make a dent in the coming apocalypse. IYW edged out FTEC over five years, but frankly, the difference is statistically insignificant. It’s like choosing between two shades of gray.

Inside the Machine: The Usual Suspects

FTEC, with 289 holdings, is attempting a broader illusion of diversification. Nvidia, Microsoft, Apple – the holy trinity of overpriced tech. IYW, with a mere 141 stocks, is a little more focused. Which is to say, a little more concentrated on the same three companies. The top three holdings account for a disturbing percentage of both portfolios. It’s a rigged game, I tell you! A meticulously crafted illusion designed to separate you from your money.

They’ll tell you to check out their “full guide” for ETF investing. Don’t bother. It’s just more propaganda. More carefully worded assurances that everything is under control. It isn’t.

The Bottom Line: A Descent Into Madness

FTEC and IYW. Two sides of the same decaying coin. FTEC offers a slightly less painful exit strategy, thanks to its lower fees and broader (though ultimately meaningless) diversification. IYW, with its more concentrated approach, might deliver slightly higher returns… or it might simply amplify your losses. It’s a crapshoot, pure and simple.

The fees, though seemingly small, add up. Over time, they become a significant drain on your wealth. The dividend yield? A pathetic attempt to appease the masses. And the performance? A fleeting illusion. Don’t be fooled. This isn’t investing. It’s gambling. And the house always wins. Now, if you’ll excuse me, I need a drink. A strong one. The world is spinning, and I’m starting to see things.

Read More

2026-02-01 00:03