Two ETFs, both chasing the same dream: tech stocks. One is a giant, the other a smaller cousin. Both charge the same tiny fee, but one has more money, more names, and a slightly better year. So it goes.
They’re both low-cost, both U.S. tech, but one holds 70 names, the other 294. The giant, XLK, has three big names-Nvidia, Apple, Microsoft-eating up a third of its assets. The smaller, FTEC, spreads its bets wider, though many of its holdings are tiny. So it goes.
Snapshot (Cost & Size)
| Metric | FTEC | XLK |
|---|---|---|
| Issuer | Fidelity | SPDR |
| Expense ratio | 0.08% | 0.08% |
| 1-yr return (as of Dec. 12, 2025) | 18.5% | 20.7% |
| Dividend yield | 0.4% | 0.5% |
| Beta | 1.24 | 1.21 |
| AUM | $16.7 billion | $95.6 billion |
Costs are the same. Returns differ slightly. Dividends? A smidgen more from XLK. But the real difference? Liquidity. XLK’s AUM is a mountain. FTEC’s? A hill. So it goes.
Performance & Risk Comparison
| Metric | FTEC | XLK |
|---|---|---|
| Max drawdown (5 y) | (34.95%) | (33.55%) |
| Growth of $1,000 over 5 years | $2,243 | $2,303 |
Both fell hard during the crash. Both bounced back. The giant fared slightly better. But the difference? A hair. So it goes.
What’s Inside
XLK holds 70 names, mostly big ones. FTEC holds 294, many small. Both have Nvidia, Microsoft, Apple. But XLK’s three biggest eat up a third of its assets. FTEC’s? A smaller slice. So it goes.
XLK is old, wise, and liquid. FTEC is newer, broader, and less liquid. But both are tech. Both are expensive in a way. So it goes.
What This Means For Investors
Investors, here’s the truth: both are fine. Both have the same fee. Both own the same big names. The only difference? XLK has more money, more names, and a slightly better track record. So it goes.
But here’s the catch: FTEC’s diversification is a mirage. Its 294 names are mostly small. XLK’s 70 are big. Which matters? For value investors, liquidity and cost matter. So it goes.
So, pick one. Either will do. Both are tech. Both are fine. But if you want to sleep better, pick XLK. So it goes.
In the end, it’s all the same. A few names, a few dollars, a few years. So it goes.
Glossary
ETF (Exchange-Traded Fund): A basket of assets, traded like a stock.
Expense ratio: The fee you pay to own the fund.
Dividend yield: How much the fund pays you.
Liquidity: How easy it is to sell.
AUM (Assets Under Management): How much money the fund holds.
Beta: How wild the fund is.
Max drawdown: How far it fell.
Sector exposure: What it owns.
Portfolio breadth: How many names it has.
Concentration of holdings: How much it bets on one name.
Total return: All the gains, including dividends.
Trailing one-year return: What it did last year.
For more, read the guide. So it goes.
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2025-12-21 00:30