Fund face-off

VGT vs FTEC: which is better for you?

Updated October 8, 2026 · 4 min read · By the Compound Wealth Calc team

VGT and FTEC are two very similar U.S. technology funds, one from Vanguard and one from Fidelity.

The short answer

They're almost the same. FTEC charges a tiny bit less (0.084% vs 0.09%). Pick the one that's easiest at your broker.

VGT vs FTEC at a glance

	VGT	FTEC
Made by	Vanguard	Fidelity
Type	ETF	ETF
Follows	MSCI US IMI IT 25/50	MSCI USA IMI IT 25/50
What it owns	hundreds of U.S. tech companies	hundreds of U.S. tech companies
Yearly fee	0.09%	0.084%
Dividend yield (approx.)	0.6%	0.5%
10-year yearly return (approx.)	21.5%	21.5%
Typical swings	Very high	Very high

Returns and yields are rounded estimates through mid-2026. Fees are each fund's yearly expense ratio.

What is VGT?

VGT owns only U.S. technology companies, big and small. A few giant tech companies make up a large share of it.

What is FTEC?

FTEC is Fidelity's U.S. technology fund. It follows a very similar list to VGT and charges a slightly lower fee.

Growth: $200 every paycheck

Here's what $200 every two weeks could grow to at each fund's approximate 10-year yearly return:

After	VGT	FTEC
10 years	$159,896	$159,896
20 years	$1,280,885	$1,280,885
30 years	$9,139,822	$9,139,822

At these past rates, VGT ends up about $0 ahead after 30 years. Past returns don't promise future ones, so treat this as a "what if," not a forecast.

Fees

Yearly fee	VGT	FTEC
Per $10,000 invested	$9	$8
On the 30-year balance	$8,226	$7,677

Lower fees leave more money growing for you. See why small fees add up.

Dividends

	VGT	FTEC
Dividends a year on the 30-year balance	$54,839	$45,699

Risk

VGT's typical swings are very high, and FTEC's are very high. Funds that hold fewer kinds of companies tend to rise and fall more. The best fund is one you can hold through a bad year without selling.

Which one fits you?

Pick VGT if you use Vanguard or like Vanguard funds.
Pick FTEC if you use Fidelity or want the slightly lower fee.

Put VGT and FTEC side by side with your own paycheck amount.

Compare them

Quick answers

Is VGT better than FTEC?

They're almost the same. FTEC charges a tiny bit less (0.084% vs 0.09%). Pick the one that's easiest at your broker.

Which has lower fees, VGT or FTEC?

VGT charges 0.09% a year and FTEC charges 0.084%. FTEC is cheaper.

Which pays more dividends, VGT or FTEC?

VGT has paid about 0.6% a year and FTEC about 0.5%. Yields change over time.

Should I own both VGT and FTEC?

No. They hold nearly the same companies, so one is enough.

Keep learning

This article is for learning only. It is not financial, tax or legal advice. Example returns are not promises. Talk to a licensed professional about your own situation.