FTEC and XLK both maintain a low expense ratio of 0.08%, but FTEC offers exposure to 292 technology stocks compared with XLK’s 75. As of December 31, FTEC’s assets under management stood at $1.6 billion versus XLK’s $52 billion. Over the past decade, FTEC experienced a maximum drawdown of 28%, roughly 3 percentage points deeper than XLK’s 25%. Annualized volatility for FTEC registered at 18.2%, marginally above XLK’s 17.5%, suggesting that the broader basket comes with slightly higher short-term price swings.

SOXX charges 0.19%—more than double FTEC’s 0.08%—and concentrates on 30 semiconductor companies, including the industry’s largest chipmakers. By contrast, FTEC’s 292-stock lineup spans hardware, software, services and internet firms, diluting idiosyncratic semiconductor risk. SOXX’s three-year annualized return reached 22% through year-end, compared with FTEC’s 20.5%, but SOXX’s sector concentration drove a maximum drawdown of 32% in mid-2022 versus 28% for FTEC. Investors seeking a smoother ride across all tech verticals may favor FTEC’s broader approach.

FTEC’s 0.08% expense ratio bests VGT’s 0.10%, yet both funds delivered a one-year total return of 34.2% as of December 31. Sector weightings align closely: both allocate roughly 25% to software, 20% to hardware, 15% to internet services and the balance across semiconductors, communications equipment and IT services. Maximum drawdowns over the past five years were comparable at 23% for VGT and 24% for FTEC, while five-year annualized volatility was within 0.3 percentage points. The modest cost advantage and broader stock count of FTEC may appeal to investors seeking similar performance at a slightly lower fee.