Key Points

Fidelity MSCI Information Technology Index ETF delivers a far lower expense ratio than iShares Semiconductor ETF
iShares Semiconductor ETF has posted much stronger total returns over the past year, though with heightened price swings
Fidelity MSCI Information Technology Index ETF offers wider diversification across 286 holdings versus the 30 stocks in iShares Semiconductor ETF

Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) delivers affordable, comprehensive technology sector access, whereas iShares Semiconductor ETF (NASDAQ:SOXX) concentrates on a volatile niche within semiconductors.

Technology sector investors frequently decide between expansive funds covering the full market and targeted options focused on specific industries. Selecting between a broad information technology ETF and a semiconductor specialist requires balancing reduced fees and extensive coverage against elevated risk and sector-driven performance.

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.

Fidelity's offering stands out with an expense ratio of just 0.08%, well below the 0.34% of the iShares fund. Although both emphasize growth, Fidelity edges out slightly on trailing-12-month yield, appealing to those prioritizing income.

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 (NYSEMKT:FTEC) tracks the MSCI USA IMI Information Technology 25/50 Index for broad tech exposure. It holds 286 positions, led by Nvidia Corp (NASDAQ:NVDA) at 18.8%, Apple Inc (NASDAQ:AAPL) at 14.29%, and Microsoft Corp (NASDAQ:MSFT) at 9.91%. Launched in 2013, it shows no unusual structures and distributed $0.95 per share in dividends over the past 12 months.

Conversely, iShares Semiconductor ETF (NASDAQ:SOXX) zeros in on semiconductors via a dedicated U.S.-listed index. With 30 holdings, top weights are Micron Technology Inc (NASDAQ:MU) at 9.03%, Broadcom Inc (NASDAQ:AVGO) at 7.78%, and Advanced Micro Devices Inc (NASDAQ:AMD) at 7.70%. Fully tech-sector allocated, it debuted in 2001, lacks structural issues, and yielded $1.67 per share trailing 12 months.

What it means for investors

For targeted access to the top 30 U.S.-listed semiconductor firms, iShares' SOXX remains a top contender, thriving amid the AI surge with a 73% year-to-date gain.

Yet if semiconductors are not your sole focus - or concerns linger over demand durability - Fidelity's FTEC presents a stronger alternative.

Beyond a modest dividend advantage, FTEC's lower fees and diversified holdings better navigate sector shifts, proving useful should chip demand soften.

Those wary of semiconductor concentration risk may find FTEC the more prudent pick.

Should you invest in Fidelity MSCI Information Technology Index ETF now?

Before investing in Fidelity MSCI Information Technology Index ETF, weigh your options carefully.

Analyst insights often highlight standout opportunities across markets, with proven track records in selections like Netflix and Nvidia yielding substantial gains over time.

Historical performance underscores the value of strategic picks, though past results do not guarantee future outcomes.

Returns referenced as of May 10, 2026.

The author holds no positions in mentioned securities. Recommendations may involve holdings in Advanced Micro Devices, Apple, Broadcom, Micron Technology, Microsoft, Nvidia, and iShares Semiconductor ETF. Full disclosures apply.

The views expressed are those of the author and not necessarily those of Nasdaq, Inc.