The Fidelity Tech ETF Offers Lower Fees Broader Reach Than the iShares SOXX
Fidelity MSCI Information Technology Index ETF (FTEC +0.53%) presents low-cost, broad tech publicity, whereas iShares Semiconductor ETF (SOXX +0.64%) targets a concentrated, high-volatility wager on the semiconductor {industry}.
Investors looking for publicity to the know-how sector usually select between broad market funds and specialised {industry} autos. The selection between a diversified info know-how fund and a concentrated semiconductor fund entails weighing decrease prices and broader attain in opposition to the potential for greater volatility and vital industry-specific returns.
Snapshot (price & measurement)
| Metric | SOXX | FTEC |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense ratio | 0.34% | 0.08% |
| 1-yr return (as of May 6, 2026) | 173.10% | 57.90% |
| Dividend yield | 0.33% | 0.36% |
| AUM | $33.8 billion | $17.9 billion |
The 1-yr return represents whole return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Fidelity fund presents a considerably decrease expense ratio of 0.08% in comparison with the 0.34% charged by the iShares ETF. While each funds give attention to progress, the Fidelity fund offers a barely greater trailing-12-month distribution yield for income-seeking traders.
Performance & danger comparability
| Metric | SOXX | FTEC |
|---|---|---|
| Max drawdown (5 yr) | (45.80%) | (34.90%) |
| Growth of $1,000 over 5 years (whole return) | $3,750 | $2,457 |
What’s inside
The Fidelity MSCI Information Technology Index ETF (FTEC +0.53%) offers publicity to a broad vary of know-how corporations by monitoring the MSCI USA IMI Information Technology 25/50 Index. Its portfolio consists of 286 holdings, with its largest positions together with Nvidia Corp (NVDA +1.29%) at 18.8%, Apple Inc. (AAPL 0.76%) at 14.29%, and Microsoft Corp (MSFT 1.70%) at 9.91%. This Fidelity fund launched in 2013, stories no structural quirks, and paid $0.95 per share in dividends over the trailing 12 months.
In distinction, the iShares Semiconductor ETF (SOXX +0.64%) maintains a a lot tighter give attention to the semiconductor {industry}, monitoring a specialised index of US-listed equities in that sector. Its portfolio holds 30 corporations, and its largest positions embody Micron Technology Inc (MU +3.45%) at 9.03%, Broadcom Inc (AVGO +0.40%) at 7.78%, and Advanced Micro Devices Inc (amd 0.35%) at 7.70%. The fund is 100.00% concentrated in the know-how sector. This iShares fund launched in 2001, stories no structural quirks, and has a trailing-12-month dividend of $1.67 per share.
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What it means for traders
If you need publicity to the 30 largest US-listed semiconductor corporations, the SOXX ETF from iShares is difficult to beat. By monitoring solely semiconductors, it has been an enormous winner in the AI revolution. The ETF is up by 73% this 12 months.
If semiconductor-specific publicity is not your objective, otherwise you’re simply plain nervous about the sustainability of semiconductor demand, Fidelity’s FTEC ETF looks as if a greater possibility.
In addition to a barely greater dividend yield, FTEC presents a considerably decrease expense ratio and a diversified method for adjusting to {industry} cycles. This might turn out to be useful if demand for semiconductor stalls.
If you are not snug with all the volatility that comes with a slender give attention to semiconductors, FTEC appears like the proper selection.
Cory Renauer has no place in any of the shares talked about. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Broadcom, Micron Technology, Microsoft, Nvidia, and iShares Trust – iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
