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FTEC vs IGV
Which ETF would AI Choose? Fidelity MSCI Information Technology Index ETF (FTEC) vs. iShares Expanded Tech-Software Sector ETF (IGV)
Key Takeaways
- FTEC provides broad exposure to the U.S. information technology sector through a market-cap-weighted index that includes hardware, semiconductors, and software companies, while IGV focuses narrowly on North American software and related technology services.
- FTEC maintains a significantly lower expense ratio of 0.08% compared to IGV’s approximately 0.39%, making it more cost-efficient for long-term investors seeking broad technology sector access.
- FTEC holds roughly 295 securities with heavy concentration in mega-cap names such as NVDA, AAPL, and MSFT, whereas IGV concentrates on approximately 110 holdings centered on software leaders including PANW, PLTR, and CRWD.
- Both ETFs are passively managed and rebalanced periodically according to their underlying indices, but IGV’s software-only mandate creates higher sensitivity to enterprise spending cycles and cybersecurity trends.
- FTEC offers greater diversification within technology, including semiconductor exposure, while IGV delivers purer play on software innovation and recurring revenue business models.
- Structural differences in sector breadth and cost position FTEC as a core technology allocation and IGV as a tactical satellite holding for investors seeking concentrated software exposure.
Introduction
Investors evaluating technology sector exposure often compare broad information technology funds with more specialized software-focused vehicles. Fidelity MSCI Information Technology Index ETF (FTEC) and iShares Expanded Tech-Software Sector ETF (IGV) both target U.S. and North American technology companies yet pursue distinct strategies. FTEC delivers diversified access across the entire information technology sector, while IGV isolates software and interactive media names. These differences make the pair useful alternatives rather than direct competitors for investors seeking varying degrees of technology sector participation.
Fidelity MSCI Information Technology Index ETF (FTEC) Overview
FTEC is a passively managed exchange-traded fund that seeks to track the MSCI USA IMI Information Technology 25/50 Index. The fund invests at least 80% of assets in index constituents classified under the information technology sector according to the Global Industry Classification Standard. It holds approximately 295 securities, with the top ten positions typically accounting for over 60% of assets and including major holdings such as NVDA, AAPL, MSFT, AVGO, and MU. The expense ratio stands at 0.08%. As a non-diversified fund, FTEC rebalances periodically to maintain alignment with the underlying index methodology.
iShares Expanded Tech-Software Sector ETF (IGV) Overview
IGV is a passively managed exchange-traded fund designed to track the S&P North American Expanded Technology Software Index. The fund provides exposure to North American software companies along with selected interactive home entertainment and interactive media firms. It typically holds around 110 securities, with top positions concentrated in names such as PANW, MSFT, PLTR, CRWD, and ORCL. The expense ratio is approximately 0.39%. The fund rebalances in line with index changes and maintains a focused mandate excluding hardware and semiconductor manufacturers.
Industry and Thematic Backdrop
The technology sector continues to benefit from ongoing digital transformation, artificial intelligence adoption, and enterprise cloud migration. Software companies within IGV’s mandate often exhibit recurring revenue streams and high operating margins, while broader information technology names in FTEC capture semiconductor demand driven by data center expansion and consumer electronics cycles. Macroeconomic factors including interest rate expectations and corporate capital expenditure trends influence both funds. Regulatory developments around data privacy, antitrust scrutiny, and export controls on advanced chips represent ongoing considerations for the sector.
Performance and Positioning Comparison
In recent market cycles, FTEC has delivered exposure aligned with overall technology sector performance, benefiting from strength in both hardware and software leaders. IGV has shown greater sensitivity to software spending patterns and cybersecurity demand, resulting in periods of outperformance or underperformance relative to broader technology benchmarks depending on rotation between hardware and software themes. Volatility profiles differ due to IGV’s narrower focus, while FTEC’s broader holdings provide some cushioning across technology sub-sectors. Relative positioning reflects investor preferences for either comprehensive technology allocation or targeted software growth opportunities.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Investors seeking data-driven insights on ETFs like FTEC and IGV may find the platform’s analytical capabilities useful for refining screening criteria.
Tickeron AI Verdict
Based on structural characteristics, Tickeron’s AI would currently assign a modest probabilistic preference to FTEC. The lower expense ratio, broader diversification across the information technology sector, and inclusion of semiconductor exposure provide a more balanced risk profile and cost efficiency. IGV offers compelling software-specific momentum but carries higher fees and concentration risk. Investors should evaluate both funds against their individual objectives, time horizons, and risk tolerances.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FTEC is a Hold and IGV is a StrongBuy.
FTEC in downward trend: 10-day moving average broke below 50-day moving average on October 23, 2026
The 10-day moving average for FTEC crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 16 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FTEC as a result. In 72 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 85%.
The Moving Average Convergence Divergence Histogram (MACD) for FTEC turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 45 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 88%.
FTEC moved below its 50-day moving average on October 15, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FTEC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FTEC's RSI Oscillator exited the oversold zone, 23 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.19% 3-day Advance, the price is estimated to grow further. Considering data from situations where FTEC advanced for three days, in 341 of 389 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
FTEC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 298 of 328 cases where FTEC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
IGV sees its Stochastic Oscillator climbs out of oversold territory
On October 21, 2026, the Stochastic Oscillator for IGV moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 59 instances where the indicator left the oversold zone. In 52 of the 59 cases the stock moved higher in the following days. This puts the odds of a move higher at over 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
IGV moved above its 50-day moving average on October 19, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.67% 3-day Advance, the price is estimated to grow further. Considering data from situations where IGV advanced for three days, in 299 of 349 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
The Aroon Indicator entered an Uptrend today. In 221 of 264 cases where IGV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 84%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IGV as a result. In 66 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for IGV turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 44 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 88%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IGV declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
IGV broke above its upper Bollinger Band on October 09, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
| FTEC | IGV | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | N/A |
| Stochastic ODDS (%) | 2 days ago 90% | 2 days ago 88% |
| Momentum ODDS (%) | 2 days ago 85% | 2 days ago 81% |
| MACD ODDS (%) | 2 days ago 88% | 2 days ago 88% |
| TrendWeek ODDS (%) | 2 days ago 88% | 2 days ago 87% |
| TrendMonth ODDS (%) | 2 days ago 87% | 2 days ago 87% |
| Advances ODDS (%) | 19 days ago 88% | 4 days ago 86% |
| Declines ODDS (%) | 9 days ago 83% | 11 days ago 84% |
| BollingerBands ODDS (%) | 2 days ago 90% | 2 days ago 89% |
| Aroon ODDS (%) | 2 days ago 90% | 2 days ago 84% |
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FTEC and
Correlation & Price change
A.I.dvisor indicates that over the last year, FTEC has been closely correlated with ONTO. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if FTEC jumps, then ONTO could also see price increases.
| Ticker / NAME | Correlation To FTEC | 1D Price Change % | ||
|---|---|---|---|---|
| FTEC | 100% | +0.47% | ||
| ONTO - FTEC | 69% Closely correlated | +0.01% | ||
| VSH - FTEC | 67% Closely correlated | -1.22% | ||
| COHR - FTEC | 65% Loosely correlated | +0.71% | ||
| GLW - FTEC | 64% Loosely correlated | -0.24% | ||
| FN - FTEC | 62% Loosely correlated | -0.86% | ||
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IGV and
Correlation & Price change
A.I.dvisor indicates that over the last year, IGV has been closely correlated with NOW. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if IGV jumps, then NOW could also see price increases.
| Ticker / NAME | Correlation To IGV | 1D Price Change % | ||
|---|---|---|---|---|
| IGV | 100% | +1.72% | ||
| NOW - IGV | 79% Closely correlated | +1.25% | ||
| RBRK - IGV | 75% Closely correlated | +6.62% | ||
| CRM - IGV | 74% Closely correlated | -0.69% | ||
| ASAN - IGV | 72% Closely correlated | +4.52% | ||
| DT - IGV | 71% Closely correlated | +1.07% | ||
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