Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) offers low-cost, broad tech exposure, while iShares Semiconductor ETF (NASDAQ:SOXX) targets a concentrated, high-volatility bet on the semiconductor industry.
Investors seeking exposure to the technology sector often choose between broad market funds and specialized industry vehicles. The choice between a diversified information technology fund and a concentrated semiconductor fund involves weighing lower costs and broader reach against the potential for higher volatility and significant industry-specific returns.
The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Compare how these two tech ETFs stack up on diversification, recent returns, and risk—plus which offers a broader slice of the technology sector.
Fidelity MSCI Information Technology Index ETF (FTEC +2.69%) offers low-cost, broad tech exposure, while iShares Semiconductor ETF (SOXX +5.67%) targets a concentrated, high-volatility bet on the semiconductor industry.
Investors seeking exposure to the technology sector often choose between broad market funds and specialized industry vehicles. The choice between a diversified information technology fund and a concentrated semiconductor fund involves weighing lower costs and broader reach against the potential for higher volatility and significant industry-specific returns.
Snapshot (cost & size)
| 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 total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Fidelity fund offers a significantly lower expense ratio of 0.08% compared to the 0.34% charged by the iShares ETF. While both funds focus on growth, the Fidelity fund provides a slightly higher trailing-12-month distribution yield for income-seeking investors.
Performance & risk comparison
| Metric | SOXX | FTEC |
|---|---|---|
| Max drawdown (5 yr) | (45.80%) | (34.90%) |
| Growth of $1,000 over 5 years (total return) | $3,750 | $2,457 |
What’s inside
The Fidelity MSCI Information Technology Index ETF (FTEC +2.69%) provides exposure to a broad range of technology companies by tracking the MSCI USA IMI Information Technology 25/50 Index. Its portfolio consists of 286 holdings, with its largest positions including Nvidia Corp (NVDA +1.73%) at 18.8%, Apple Inc (AAPL +2.08%) at 14.29%, and Microsoft Corp (MSFT 1.33%) at 9.91%. This Fidelity fund launched in 2013, reports no structural quirks, and paid $0.95 per share in dividends over the trailing 12 months.
In contrast, the iShares Semiconductor ETF (SOXX +5.67%) maintains a much tighter focus on the semiconductor industry, tracking a specialized index of U.S.-listed equities in that sector. Its portfolio holds 30 companies, and its largest positions include Micron Technology Inc (MU +15.40%) at 9.03%, Broadcom Inc (AVGO +4.27%) at 7.78%, and Advanced Micro Devices Inc (AMD +11.44%) at 7.70%. The fund is 100.00% concentrated in the technology sector. This iShares fund launched in 2001, reports no structural quirks, and has a trailing-12-month dividend of $1.67 per share.
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What it means for investors
If you want exposure to the 30 largest U.S.-listed semiconductor companies, the SOXX ETF from iShares is hard to beat. By tracking only semiconductors, it’s been a big winner in the AI revolution. The ETF is up by 73% this year.
If semiconductor-specific exposure isn’t your goal, or you’re just plain nervous about the sustainability of semiconductor demand, Fidelity’s FTEC ETF seems like a better option.
In addition to a slightly higher dividend yield, FTEC offers a significantly lower expense ratio and a diversified approach for adjusting to industry cycles. This could come in handy if demand for semiconductors stalls.
If you’re not comfortable with all the volatility that comes with a narrow focus on semiconductors, FTEC looks like the right choice.
