{"id":208631,"date":"2026-01-31T16:26:00","date_gmt":"2026-01-31T21:26:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/01\/31\/iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors\/"},"modified":"2026-01-31T16:26:00","modified_gmt":"2026-01-31T21:26:00","slug":"iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/01\/31\/iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors\/","title":{"rendered":"IYW vs. FTEC: Which Diversified Technology ETF Is the Better Buy for Investors?"},"content":{"rendered":"<p><a href=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/NVDA-Q\/pressreleases\/37341966\/iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors\/\">IYW vs. FTEC: Which Diversified Technology ETF Is the Better Buy for Investors?<\/a><\/p>\n<p><a href=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/NVDA-Q\/pressreleases\/37341966\/iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors\/\">https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/NVDA-Q\/pressreleases\/37341966\/iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors\/<\/a><\/p>\n<p>Publish Date: <a href=\"publish_date]\">2026-01-31 16:26:00<\/a><\/p>\n<p>Source Domain: <a href=\"www.theglobeandmail.com\">www.theglobeandmail.com<\/a><\/p>\n<h2>Key Points<\/h2>\n<ul>\n<li>\n<p>FTEC carries a much lower expense ratio and slightly higher dividend yield than IYW.<\/p>\n<\/li>\n<li>\n<p>IYW posted higher one- and five-year total returns, but FTEC showed a smaller maximum drawdown over five years.<\/p>\n<\/li>\n<li>\n<p>FTEC holds twice as many stocks, with both funds dominated by Nvidia, Microsoft, and Apple.<\/p>\n<\/li>\n<li\/><\/ul>\n<p>This comparison looks at two popular U.S. technology ETFs: the <strong>iShares US Technology ETF<\/strong><span class=\"ticker\" data-id=\"208563\">(NYSEMKT:IYW)<\/span>and the <strong>Fidelity MSCI Information Technology Index ETF<\/strong><span class=\"ticker\" data-id=\"289214\">(NYSEMKT:FTEC)<\/span>, both of which track the broader technology sector.<\/p>\n<p>While both funds provide exposure to tech giants, they differ in cost, diversification, and recent performance.<\/p>\n<h2 id=\"snapshot-cost-amp-size\">Snapshot (cost &#038; size)<\/h2>\n<table>\n<tr>\n<th>Metric<\/th>\n<th>IYW<\/th>\n<th>FTEC<\/th>\n<\/tr>\n<tr>\n<td>Issuer<\/td>\n<td>iShares<\/td>\n<td>Fidelity<\/td>\n<\/tr>\n<tr>\n<td>Expense ratio<\/td>\n<td>0.38%<\/td>\n<td>0.08%<\/td>\n<\/tr>\n<tr>\n<td>1-yr return (as of Jan. 27, 2026)<\/td>\n<td>23.85%<\/td>\n<td>20.71%<\/td>\n<\/tr>\n<tr>\n<td>Dividend yield<\/td>\n<td>0.14%<\/td>\n<td>0.43%<\/td>\n<\/tr>\n<tr>\n<td>AUM<\/td>\n<td>$21 billion<\/td>\n<td>$17 billion<\/td>\n<\/tr>\n<tr>\n<td>Beta (5Y monthly)<\/td>\n<td>1.26<\/td>\n<td>1.28<\/td>\n<\/tr>\n<\/table>\n<p class=\"caption\">Beta measures price volatility relative to the S&#038;P 500. The 1-yr return represents total return over the trailing 12 months.<\/p>\n<p>FTEC has the edge in both fees and income, with a lower expense ratio and a higher dividend yield. This could appeal to investors focused on reducing expenses or building a stream of passive dividend income.<\/p>\n<h2 id=\"performance-amp-risk-comparison\">Performance &#038; risk comparison<\/h2>\n<table>\n<tr>\n<th>Metric<\/th>\n<th>IYW<\/th>\n<th>FTEC<\/th>\n<\/tr>\n<tr>\n<td>Max drawdown (5 y)<\/td>\n<td>-39.44%<\/td>\n<td>-34.95%<\/td>\n<\/tr>\n<tr>\n<td>Growth of $1,000 over 5 years<\/td>\n<td>$2,283<\/td>\n<td>$2,133<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"whatx27s-inside\">What&#8217;s inside<\/h2>\n<p>FTEC is built for broad coverage of U.S. information technology, with 289 holdings from various corners of the tech sector. Its top positions are <strong>Nvidia<\/strong>, <strong>Microsoft<\/strong>, and <strong>Apple<\/strong>, and there are no unusual features or quirks to consider.<\/p>\n<p>IYW is also targeted toward the broader tech sector, but it contains only 141 stocks. Its top three holdings match FTEC\u2019s, but these three stocks make up a slightly larger proportion of the portfolio compared to FTEC.<\/p>\n<p>For more guidance on ETF investing, check out the full guide at this link.<\/p>\n<h2 id=\"what-this-means-for-investors\">What this means for investors<\/h2>\n<p>FTEC and IYW are both broad tech-centered funds that encompass a large swath of the tech industry. FTEC shines with its diversification, but IYW\u2019s more&#8230;<\/p>\n<p><a href=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/NVDA-Q\/pressreleases\/37341966\/iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IYW vs. FTEC: Which Diversified Technology ETF Is the Better Buy for Investors? https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/NVDA-Q\/pressreleases\/37341966\/iyw-vs-ftec-which-diversified-technology-etf-is-the-better-buy-for-investors\/ Publish&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[8],"tags":[],"class_list":["post-208631","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/208631"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=208631"}],"version-history":[{"count":0,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/208631\/revisions"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=208631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=208631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=208631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}