FTEC vs VGT: Which ETF Is Better in 2026?
Short answer
FTEC (Fidelity MSCI Information Technology Index ETF) tracks MSCI USA IMI Information Technology Index at 0.08%; VGT (Vanguard Information Technology ETF) tracks MSCI US IMI Information Technology 25/50 at 0.09%. They give you different exposure, so pick by what you want to own: FTEC for MSCI USA IMI Information Technology Index, VGT for MSCI US IMI Information Technology 25/50. Neither is universally better.
FTEC vs VGT at a glance
| FTEC | VGT | |
|---|---|---|
| Fund | Fidelity MSCI Information Technology Index ETF | Vanguard Information Technology ETF |
| Tracks | MSCI USA IMI Information Technology Index | MSCI US IMI Information Technology 25/50 |
| Expense ratio | 0.08% | 0.09% |
| Dividend yield | ~0.33% | ~0.6% |
| AUM | ~$21.4 billion | ~$95 billion |
| Top holding | NVDA | MSFT |
| Issuer | Fidelity Investments | Vanguard |
Approximate as of mid-2026; verify with each issuer.
What the differences actually mean
Cost. FTEC charges 0.08% a year and VGT charges 0.09%. On a $10,000 holding that is roughly $8 versus $9 a year. The gap looks tiny, but FTEC keeps a little more of your return every year, and over two or three decades of compounding that difference grows into real money.
Dividend yield. FTEC yields about ~0.33% and VGT about ~0.6%. VGT pays more income today, which matters if you are drawing from the portfolio. If you are reinvesting for growth, total return (price plus dividends) matters more than the headline yield.
Size and liquidity. FTEC holds about ~$21.4 billion versus VGT's ~$95 billion. Both are large enough to trade with tight bid-ask spreads, so for a buy-and-hold investor the size gap rarely changes anything in practice; it mostly tells you how widely each fund is already held.
Concentration. FTEC's largest position is NVDA at about 16.73%, and VGT's is MSFT at ~16.5%. They share top names (MSFT, AAPL, NVDA, AVGO, ORCL), so owning both is less diversification than it looks: you are doubling down on the same companies.
Issuer. FTEC is run by Fidelity Investments and VGT by Vanguard. Vanguard is investor-owned and known for rock-bottom fees.
Which fits which investor
FTEC (MSCI USA IMI Information Technology Index) and VGT (MSCI US IMI Information Technology 25/50) give you genuinely different exposure, so this is a choice of what you want to own, not just which is cheaper. A broad-market fund suits a core, long-horizon holding you can size large and forget. A narrower, sector, or growth-tilted fund adds concentration and usually more volatility, which suits a longer time horizon and a higher risk tolerance, and is better used as a satellite position than as your whole portfolio. VGT's higher yield leans more toward income and steadier names; the other tilts more toward growth and price appreciation.
What is FTEC?
Holds US information-technology companies across large, mid, and small caps, so it is broader than an S&P-500-only tech fund like XLK. Heavily concentrated in NVIDIA, Apple, and Microsoft, it is a low-cost (0.08%) way to overweight the tech sector.
What is VGT?
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.
FTEC or VGT: which should you pick?
- Pick FTEC if you want MSCI USA IMI Information Technology Index exposure at 0.08%.
- Pick VGT if you want MSCI US IMI Information Technology 25/50 exposure at 0.09%.
- Overlap: they share top holdings (MSFT, AAPL, NVDA, AVGO, ORCL), so owning both adds less diversification than it appears.
- Cost: 0.08% vs 0.09%, a small but compounding difference.
The bottom line: FTEC vs VGT
FTEC (MSCI USA IMI Information Technology Index) and VGT (MSCI US IMI Information Technology 25/50) give you different exposure, so pick by what you want to own, not by which is "better". They overlap heavily, so owning both mostly doubles a fee. Walnut can show the overlap against your real portfolio before you decide.
Both funds lean heavily on NVDA, so understanding that single company explains a lot of what drives either ETF.
Build a portfolio around FTEC with Walnut
Walnut connects your real brokerage so you can see how FTEC and VGT overlap with what you already own, analyze either by chatting through Claude or ChatGPT, and place any trade yourself.
FAQ
What is the difference between FTEC and VGT?
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FTEC tracks MSCI USA IMI Information Technology Index (0.08% expense ratio); VGT tracks MSCI US IMI Information Technology 25/50 (0.09%). They track different indexes, so they give you different exposure.
Is FTEC or VGT cheaper?
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FTEC charges 0.08% and VGT charges 0.09% as of mid-2026. Over decades the cheaper fund keeps more of your return, but verify current figures with each issuer.
Do FTEC and VGT hold the same stocks?
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They overlap meaningfully: shared top holdings include MSFT, AAPL, NVDA, AVGO, ORCL, AMD. Owning both can mean less diversification than it looks.
Which has a higher dividend yield, FTEC or VGT?
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FTEC yields about ~0.33% and VGT about ~0.6% (mid-2026, approximate). If income matters, that gap is one input, but total return and cost matter more for most long-term investors.
Should you own both FTEC and VGT?
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Often not, because they overlap heavily (MSFT, AAPL, NVDA, AVGO and more), so holding both adds cost without much extra diversification. Walnut can show the overlap against your real portfolio.
Walnut is informational, not investment advice. ETF figures are approximations stamped to mid-2026; verify current data with each issuer before deciding. Nothing here is a recommendation.