FTEC vs VGT: Which ETF Is Better in 2026?

The label is the same; the portfolio is not. Their top holdings overlap about 51% by weight (6 shared names: MSFT, AAPL, NVDA, AVGO, AMD, CSCO). That is real overlap, but each still tilts differently, so the two are genuinely different bets under one label.

Overlap reflects top holdings by weight (an approximation of full-fund overlap), as of early 2026. Verify full holdings with each issuer.

FTEC tracks MSCI USA IMI Information Technology 25/50 Index, and VGT tracks MSCI US IMI Information Technology 25/50. Because they follow different benchmarks, the two funds screen and weight their holdings differently, and that is what produces any gap in exposure, concentration, and return between them.

On construction, FTEC is market-cap-weighted and VGT is market-cap-weighted. They share a weighting approach, so any difference comes from the underlying index rather than the method.

So the funds cover similar ground under different rules. Read the holdings overlap above alongside the methodology here to see how much of the difference is real exposure versus labeling.

FTEC is the cheaper fund at 0.08% versus 0.09%, a gap of about $1 a year on a $10,000 holding. When two funds track the same or a very similar index, that fee gap is close to pure savings: it compounds into roughly $30 of fees avoided over 30 years on that $10,000 (more as the balance grows), with essentially no change in what you own.

On scale, FTEC holds about approximately $20 billion and VGT about ~$95 billion. Larger funds generally trade at tighter bid-ask spreads and carry deeper options markets, which matters if you trade actively or in size; for buy-and-hold investors it rarely changes the outcome. VGT currently pays the higher dividend yield (~0.6% versus approximately 0.4%), which shifts more of its return into cash today.

VGT concentrates more weight in its largest holdings (top three about 46%), so it suits an investor who wants the theme expressed through its biggest winners and can tolerate more single-name risk. FTEC spreads weight more evenly (top three about 39%), which suits an investor who wants the same theme with less dependence on any one company. Match the fund to how much concentration you actually want.

These are descriptive profiles, not recommendations. What fits you depends on your goals, horizon, and what you already own. Walnut is not an investment adviser.

The overlap that decides most ETF purchases is not between FTEC and VGT, it is with what you already hold. ETF redundancy is invisible without looking through to the underlying holdings: you can already own most of FTEC inside a broad fund like an S&P 500 or total-market ETF and not realize it.

This is the part a generic comparison cannot answer, because it depends on your account. Connect your brokerage and Walnut looks through your funds to show your real, combined exposure, flags how much of FTEC or VGT you already own elsewhere, and tells you whether adding either just buys the same companies twice, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Fidelity MSCI Information Technology Index ETF (FTEC) is a passively managed fund that seeks to track the MSCI USA IMI Information Technology 25/50 Index, giving broad exposure to U.S. technology companies across large, mid, and small caps. The fund holds roughly 280 to 290 stocks but is heavily top-weighted, with its largest positions in mega-cap technology and semiconductor companies. With an expense ratio of 0.08%, FTEC is one of the cheapest ways to own the U.S. tech sector in a single fund. Because it is sector-concentrated, its performance closely tracks the fortunes of a handful of dominant technology and chip stocks rather than the broad market.

Full FTEC guide

Tracks the MSCI US Information Technology sector. Cheapest cost vehicle for sector-tech exposure. Excludes Amazon, Alphabet, and Meta because they're classified as Consumer Discretionary or Communication Services, not IT.

Full VGT guide

This is a choice of which bet you are making. If you want the theme concentrated in its biggest winners, the more top-heavy fund suits you; if you want the theme spread more evenly so no single name dominates, the more diversified one fits. Match the construction to your conviction, then check overlap with what you already own.

For the full detail, see the FTEC and VGT guides.

Approximate as of early 2026; verify with each issuer.

Vanguard is investor-owned and known for rock-bottom fees.

FTEC and VGT share a theme but are built differently (about 51% overlap by weight), so pick the construction that matches your conviction. Either way, the decisive check is overlap with your real portfolio. Walnut can show that before you buy. It is not an investment adviser.

Both funds lean on NVDA, so understanding that one company explains a lot of what drives either ETF.