FTEC vs. IYW: Which Tech ETF Is the Better Buy for Investors?
Each of these two popular tech ETFs offers distinct advantages depending on what investors prioritize most.
Overview
Investors seeking exposure to the domestic tech sector often land on one of these two heavyweights: the iShares U.S. Technology ETF (NYSEMKT:IYW) or the Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC). Comparing these funds reveals two high-growth vehicles with similar performance but meaningfully different expense ratios and portfolio depth.
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.
Details
FTEC is significantly cheaper with an expense ratio of 0.08% -- which is 0.30 percentage points lower than IYW. FTEC also offers a higher dividend yield of 0.33% vs. just 0.11% for IYW.
Source
Originally published at www.fool.com.