Dividend comparison
XLK vs FTEC: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street Technology Select Sector SPDR ETF and Fidelity MSCI Information Technology Index ETF, side by side. Updated October 21, 2026.
XLK vs FTEC: key differences
The short answer, from the latest data on this page.
- Fees. Both charge about 0.08% a year, so cost is not what separates them.
- Income. Their trailing yields are almost the same: 0.45% for XLK and 0.39% for FTEC. XLK pays annual, FTEC pays quarterly.
- Performance. Over the last 5 years, XLK returned 142.8% versus 134.1% for FTEC, with dividends reinvested. $10,000 would have grown to $24,275 in XLK and $23,410 in FTEC.
- Risk. Their worst declines over the last 5 years were similar: -33.6% for XLK and -35.0% for FTEC from peak to trough.
- Diversification. FTEC holds 294 positions and XLK holds 75. The ten largest positions make up 65.2% of XLK and 64.5% of FTEC.
- Overlap. 84% of the two portfolios overlap by weight, across 70 shared holdings. Owning both adds little diversification.
- Dividend growth. XLK grew its yearly payout 8.7% a year over the last 4 years, versus 3.0% for FTEC.
- Size. XLK is the larger fund with $120.7 billion in assets, against $22.1 billion for FTEC.
Bottom line: XLK fits better if you care most about stronger 5-year returns and faster dividend growth. FTEC fits better if you care most about broader diversification. With 84% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | XLK State Street Technology Select Sector SPDR ETF | FTEC Fidelity MSCI Information Technology Index ETF |
|---|---|---|
| Dividend yield (TTM) | 0.45% | 0.39% |
| Dividend / share (TTM) | $0.83 | $1.11 |
| Payout frequency | Annual | Quarterly |
| Last dividend | $0.2207 on Sep 23, 2026 | $0.3320 on Sep 22, 2026 |
| Ex-dividend date | Sep 21, 2026 | Sep 18, 2026 |
| Dividend growth (CAGR) | 8.7% over 4 yrs | 3.0% over 4 yrs |
| Price | $185.44 | $286.87 |
| Dividend growth streak | 4 years | 4 years |
| Beta | 1.35 | 1.35 |
| Max drawdown (5Y) | -33.6% | -35.0% |
| Market cap | $120.98B | $17.10B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $120.70B | $22.15B |
| Number of holdings | 75 | 294 |
| Top 10 concentration | 65.2% | 64.5% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
XLK
$3.75/mo
$45 /yr at 0.45% yield
FTEC
$3.22/mo
$39 /yr at 0.39% yield
Dividend history
Total dividends paid per share in each calendar year. XLK pays annual; FTEC pays quarterly.
| Year | XLK | FTEC |
|---|---|---|
| 2025 | $0.7840 | $0.9560 |
| 2024 | $0.7617 | $0.9050 |
| 2023 | $0.7297 | $1.1080 |
| 2022 | $0.6453 | $0.8760 |
| 2021 | $0.5613 | $0.8490 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $24,275 in XLK and $23,410 in FTEC.
| Period | XLK | FTEC |
|---|---|---|
| 1 month | -2.08% | -1.67% |
| 3 months | 5.66% | 6.20% |
| Year to date | 29.27% | 27.69% |
| 1 year | 29.34% | 26.49% |
| 3 years | 130.27% | 138.24% |
| 5 years | 142.75% | 134.10% |
- XLK
- FTEC
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- XLK
- FTEC
XLK vs FTEC holdings overlap
84% overlap by weight, with 70 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | XLK weight | FTEC weight |
|---|---|---|
| NVDANVIDIA CORP | 15.45% | 17.47% |
| AAPLAPPLE INC | 14.94% | 17.14% |
| MSFTMICROSOFT CORP | 11.71% | 12.14% |
| AVGOBROADCOM INC | 4.66% | 4.09% |
| MUMICRON TECHNOLOGY INC | 3.92% | 3.97% |
| AMDADVANCED MICRO DEVICES | 4.66% | 3.40% |
| PLTRPALANTIR TECHNOLOGIES INC A | 2.58% | 1.68% |
| CSCOCISCO SYSTEMS INC | 2.55% | 1.66% |
| INTCINTEL CORP | 2.69% | 1.59% |
| LRCXLAM RESEARCH CORP | 1.99% | 1.35% |
Top 10 holdings
Largest positions by portfolio weight.
XLK75 holdings total
Quick verdict
XLK fits better if you care most about stronger 5-year returns and faster dividend growth. FTEC fits better if you care most about broader diversification. With 84% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is XLK or FTEC better for dividend income?
It depends on your goals. XLK currently yields 0.45% Trailing Twelve Months (TTM) while FTEC yields 0.39%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between XLK and FTEC?
State Street Technology Select Sector SPDR ETF (XLK) is an ETF listed on AMEX. Fidelity MSCI Information Technology Index ETF (FTEC) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, XLK or FTEC?
They cost about the same: XLK charges 0.08% a year and FTEC charges 0.08%.
Which has performed better, XLK or FTEC?
Over the last 5 years, XLK has the higher total return with dividends reinvested: XLK returned 142.8% and FTEC returned 134.1%. Past performance does not predict future returns.
Which is riskier, XLK or FTEC?
Measured by the worst peak-to-trough decline over the last five years, FTEC has been riskier: XLK fell as much as 33.6% and FTEC as much as 35.0%. Their betas are 1.35 and 1.35.
How much do XLK and FTEC overlap?
About 84% of the two portfolios overlap by weight, across 70 shared holdings. The largest shared positions are NVDA, AAPL, MSFT. Holding both adds little diversification.
How often do XLK and FTEC pay dividends?
XLK pays annual and FTEC pays quarterly.
How much income does $10,000 in XLK vs FTEC generate?
At current TTM yields, $10,000 in XLK would generate roughly $3.75 per month ($45 annually). The same amount in FTEC would produce about $3.22 per month ($39 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both XLK and FTEC?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare XLK vs FTEC with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how XLK and FTEC fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.