Key Points
Investors looking for technology exposure often choose between the iShares U.S. Technology ETF (NYSEMKT:IYW) and the Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC). Both funds deliver strong growth, but they differ in expense ratios, dividend yields, and portfolio composition.
Snapshot (cost & size)
| Metric | IYW | FTEC |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense ratio | 0.38% | 0.08% |
| 1‑year return (as of June 12, 2026) | 49.61% | 49.82% |
| Dividend yield | 0.11% | 0.33% |
| Beta | 1.43 | 1.41 |
| AUM | $25.2 billion | $21.4 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five‑year monthly returns. The 1‑year return represents total return over the trailing 12 months. Dividend yield is the trailing‑12‑month distribution yield.
FTEC’s expense ratio of just 0.08% makes it significantly cheaper than IYW’s 0.38%, and its dividend yield of 0.33% outpaces IYW’s 0.11%.
Performance & risk comparison
| Metric | IYW | FTEC |
|---|---|---|
| Max drawdown (5 yr) | 39.44% | 34.95% |
| Growth of $1,000 over 5 years (total return) | $2,559 | $2,441 |
What’s inside
FTEC, launched in 2013, tracks a broad technology index with roughly 300 holdings, giving investors wide exposure across the sector. Its top positions are Nvidia (NASDAQ:NVDA) at 16.7%, Apple (NASDAQ:AAPL) at 14.5%, and Microsoft (NASDAQ:MSFT) at 9.4%.
IYW, which debuted in 2000, follows a more concentrated basket of 139 U.S. tech firms. Its largest weights are Nvidia at 14.8%, Apple at 13.5%, and the combined share classes of Alphabet (NASDAQ:GOOGL) at 12.1%. The longer track record provides more data across multiple market cycles.
What this means for investors
The choice between the two ETFs hinges on an investor’s priorities. FTEC’s ultra‑low expense ratio and broader diversification make it attractive for cost‑conscious investors who value exposure to a larger pool of technology names. Over the long run, the 0.30‑percentage‑point fee advantage can meaningfully augment returns.
IYW’s slightly stronger five‑year performance and deeper focus on mega‑cap names may appeal to investors who prefer a concentrated play on the sector’s leaders. Its 2000 launch also offers a richer historical record for analysis.
Both funds share core holdings such as Nvidia, Apple, and Microsoft, so day‑to‑day performance differences are modest. Ultimately, investors seeking lower costs and broader tech exposure are likely to favor FTEC, while those prioritizing a concentrated stance and longer performance history may lean toward IYW.
Also Read
- CME Group’s Future Outlook: KBW Advises Buying Opportunity Amid Perpetual Futures Debate
- France’s AI Infrastructure Push Draws Foxconn, Nvidia and a New Wave of European Investment
- Centre committed not to ask for further ‘sacrifices’ after freeze on provinces’ development funds: Bilawal
- Critical Update on Paragliding Accident in Spain
