{
  "id": 19625607,
  "title": "Better Tech ETF for 2027: State Street's XLK vs. Fidelity's FTEC",
  "url": "https://urgent.news/2026/11/12/better-tech-etf-for-2027-state-streets-xlk-vs-fidelitys-ftec",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-12T08:16:51.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/coverage/etfs/2026/11/12/better-tech-etf-for-2027-state-street-s-xlk-vs-fidelity-s-ftec/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Investors searching for tech sector exposure can consider two ETFs: the State Street Technology Select Sector SPDR ETF (XLK) and the Fidelity MSCI Information Technology Index ETF (FTEC). Both funds share low expense ratios, betas, and dividend yields, making them cost-effective options. However, they differ significantly in their portfolio construction and AUMs, resulting in distinct investment outcomes.\n\nXLK is anchored by the largest and most established tech companies in the S&P 500, delivering ultra-low-cost exposure through a 100% tech portfolio of 76 stocks. Its largest holdings include Apple, Nvidia, and Microsoft, with over $120 billion in assets under management. The fund launched in 1998 and offers a modest 0.5% trailing-12-month yield.\n\nIn contrast, FTEC provides broader market participation by tracking the MSCI Information Technology Index, encompassing 294 holdings across the technology sector. With a higher AUM of $20.8 billion, FTEC offers greater liquidity and diversification, reducing exposure to individual stock risks. Its portfolio includes Apple, Nvidia, and Microsoft, but also includes smaller-cap companies for total-market breadth. The fund, established in 2013, has paid a higher 0.4% trailing-12-month yield.\n\nIn conclusion, the choice between XLK and FTEC hinges on an investor's priorities. If you seek liquidity and alignment with the largest tech companies, XLK is the better choice. However, if you prioritize broad exposure to the technology sector and the potential upside of mid- and small-cap stocks, FTEC is the recommended option.",
  "summary": "Both funds charge just 0.08%, but their holdings counts differ sharply, and long-term returns reveal a narrow gap.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Better Tech ETF for 2027: State Street's XLK vs. Fidelity's FTEC",
        "url": "https://urgent.news/2026/11/12/better-tech-etf-for-2027-state-streets-xlk-vs-fidelitys-ftec-19627482",
        "published": "2026-11-12T08:36:51.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}