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.
FTEC vs. IYW: Which Tech ETF Is the Better Buy for Investors?
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.
