The State Street Technology Select Sector SPDR ETF (XLK) and the Fidelity MSCI Information Technology Index ETF (FTEC) both target the U.S. technology sector but differ in holdings and assets under management. XLK has larger AUM and a slightly higher dividend yield, while FTEC offers broader diversification with more stocks.

Both XLK and FTEC have an expense ratio of 0.08% and share significant overlap in their top holdings, with FTEC holding nearly 300 stocks compared to XLK’s 70. FTEC has a deeper historical drawdown and slightly higher volatility, with its top three holdings comprising over 44% of assets.

In terms of performance and risk, XLK and FTEC have similar histories, but FTEC has a slightly higher beta and max drawdown over the last five years. Diversification is a key difference, with FTEC offering broader exposure while XLK has a larger scale in terms of assets under management.

Investors looking to invest in the tech sector should consider factors like diversification, performance, and cost when choosing between XLK and FTEC. Both ETFs have their own strengths and weaknesses, with FTEC offering broader exposure and XLK having a larger scale in assets under management.

Read more at Nasdaq: FTEC Offers Broader Tech Exposure Than XLK, But There’s a Hidden Downside