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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 delivers broad, hardware-heavy information technology exposure across roughly 290 holdings, while IGV concentrates in software, cybersecurity, and interactive media with about 110 positions.
- Cost is a decisive structural gap: FTEC carries a 0.08% expense ratio versus IGV's 0.38%, a meaningful long-term advantage for cost-sensitive investors.
- IGV skews toward pure-play software and AI-driven enterprise names such as Palantir, Palo Alto Networks, and CrowdStrike, whereas FTEC is dominated by semiconductor and hardware giants like Nvidia, Apple, and Microsoft.
- Both funds are non-diversified and highly concentrated in their top holdings, but FTEC's broader index lowers single-name concentration relative to IGV.
- Performance drivers differ: FTEC tracks the semiconductor and hardware cycle, while IGV is more sensitive to software multiples, cloud adoption, and cybersecurity spending.
- Tickeron AI Verdict: FTEC is the favored ticker of the two based on superior cost efficiency, broader diversification, and more consistent relative positioning.
Introduction
Investors seeking technology exposure often assume all tech ETFs are interchangeable, but FTEC and IGV tell very different stories. The Fidelity MSCI Information Technology Index ETF (FTEC) and the iShares Expanded Tech-Software Sector ETF (IGV) both target the technology sector, yet they do not compete head-to-head on portfolio composition. FTEC spans the entire U.S. information technology value chain—semiconductors, hardware, software, and IT services—while IGV narrows its focus to software and select interactive media companies. This ETF comparison matters right now because the two funds respond differently to the same macro backdrop, making the choice between broad technology and concentrated software exposure a pivotal relative positioning decision.
Fidelity MSCI Information Technology Index ETF (FTEC) Overview
FTEC is a passively managed index fund that seeks to track the performance of the MSCI USA IMI Information Technology 25/50 Index. This benchmark captures the full breadth of the U.S. information technology sector across large, mid, and small capitalization companies, giving the fund roughly 290 holdings at any given time.
The fund is heavily weighted toward the semiconductor and hardware complex. Its largest positions include NVDA (Nvidia), AAPL (Apple), MSFT (Microsoft), AVGO (Broadcom), MU (Micron Technology), and AMD (Advanced Micro Devices). Information technology accounts for the overwhelming majority of assets, reflecting the index's sector purity.
Structurally, FTEC stands out for its cost efficiency, with an expense ratio of just 0.08%—among the lowest in the technology ETF category. The fund is non-diversified under its regulatory classification and is capitalization-weighted, meaning its returns are influenced heavily by its largest constituents. Its liquidity profile is robust, supported by substantial assets under management (AUM) and tight bid-ask spreads on major exchanges.
iShares Expanded Tech-Software Sector ETF (IGV) Overview
IGV is a passively managed ETF that seeks to track the S&P North American Expanded Technology Software Index. The index measures U.S.-traded equities from the software industry, along with select North American companies in interactive home entertainment and interactive media and services. The fund generally holds around 110 positions.
IGV's exposure is dominated by software, cloud, and cybersecurity franchises. Its top holdings include PLTR (Palantir Technologies), PANW (Palo Alto Networks), MSFT (Microsoft), CRWD (CrowdStrike), CRM (Salesforce), ORCL (Oracle), and NOW (ServiceNow). Application software and systems software together represent nearly the entire portfolio.
The fund carries an expense ratio of approximately 0.38%, higher than broad tech index peers but typical for more specialized sector funds. IGV is non-diversified and capitalization-weighted, with the top ten holdings representing a substantial share of total assets. It is one of the most established software-focused ETFs, with a long operating history and ample daily trading volume.
Industry and Thematic Backdrop
Both funds operate within a technology sector shaped by the artificial intelligence (AI) build-out, rising enterprise software demand, and evolving cybersecurity threats. Semiconductors and hardware have benefited from accelerated investment in AI data centers and accelerated computing, a dynamic that directly supports FTEC's largest holdings. Software companies, meanwhile, are monetizing AI through cloud subscriptions, automation tools, and security platforms, which underpins IGV's portfolio.
Key catalysts affecting both funds include corporate capital expenditure (capex) cycles, interest rate expectations, and regulatory scrutiny of large technology platforms. Software valuations are particularly sensitive to interest rates, given their reliance on future cash flows, while hardware names are more tethered to cyclical demand and supply-chain conditions. Sector risks include valuation concentration, potential slowdowns in enterprise IT spending, and geopolitical tensions affecting the semiconductor supply chain.
Performance and Positioning Comparison
Over recent market cycles, FTEC and IGV have delivered divergent performance profiles driven by their underlying compositions. FTEC's heavy semiconductor weighting has made it a direct beneficiary of the AI hardware investment surge, with Nvidia, Apple, and Microsoft exerting outsized influence on returns. IGV's software tilt has produced strong momentum in cybersecurity and AI-application names such as Palantir and CrowdStrike, but has also exhibited greater sensitivity to shifts in growth-stock multiples.
In terms of relative positioning, FTEC offers broader diversification across the technology value chain, which can moderate single-segment volatility. IGV provides more concentrated, higher-beta exposure to the software subsector, amplifying both upside during risk-on periods and drawdowns when valuations compress. For investors weighing fund performance against risk, the trade-off is essentially breadth and cost (FTEC) versus thematic purity and software momentum (IGV).
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 is designed to identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening, making it a practical resource for both active traders and long-term investors looking to refine their watchlists.
Tickeron AI Verdict
Based on observable structural factors, Tickeron's AI would likely favor FTEC over IGV in the current environment. FTEC's 0.08% expense ratio is roughly one-fifth of IGV's cost, providing a compounding advantage over time. Its broader base of nearly 290 holdings lowers single-name and single-subsector concentration relative to IGV's software-heavy portfolio, potentially improving risk-adjusted consistency. While IGV offers compelling thematic exposure to AI-enabled software and cybersecurity, its higher concentration and elevated sensitivity to growth-stock valuations introduce additional volatility. On balance, FTEC's combination of cost efficiency, diversification, and full-sector exposure makes it the more structurally resilient choice in this comparison.
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 Hold.
FTEC's RSI Oscillator climbs out of oversold territory
The RSI Indicator for FTEC moved out of oversold territory on November 09, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In 23 of the 24 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 51 of 59 cases where FTEC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 86%.
Following a +4.73% 3-day Advance, the price is estimated to grow further. Considering data from situations where FTEC advanced for three days, in 337 of 386 cases, the price rose further within the following month. The odds of a continued upward trend are 87%.
FTEC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FTEC as a result. In 69 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 84%.
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 50 similar instances when the indicator turned negative. In 38 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
FTEC moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
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 14 of 16 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 88%.
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%.
The Aroon Indicator for FTEC entered a downward trend on November 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
IGV's Indicator enters downward trend
The Aroon Indicator for IGV entered a downward trend on November 13, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 196 similar instances where the Aroon Indicator formed such a pattern. In 172 of the 196 cases the stock moved lower. This puts the odds of a downward move at 88%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IGV as a result. In 68 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 84%.
The Moving Average Convergence Divergence Histogram (MACD) for IGV turned negative on October 29, 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 42 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
IGV moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IGV crossed bearishly below the 50-day moving average on November 05, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 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 76%.
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%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where IGV's RSI Oscillator exited the oversold zone, 30 of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 48 of 58 cases where IGV's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
Following a +1.63% 3-day Advance, the price is estimated to grow further. Considering data from situations where IGV advanced for three days, in 301 of 351 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
IGV may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
| FTEC | IGV | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 90% | 1 day ago 88% |
| Stochastic ODDS (%) | 1 day ago 86% | 1 day ago 83% |
| Momentum ODDS (%) | 1 day ago 84% | 1 day ago 84% |
| MACD ODDS (%) | 4 days ago 76% | 1 day ago 82% |
| TrendWeek ODDS (%) | 1 day ago 88% | 1 day ago 87% |
| TrendMonth ODDS (%) | 1 day ago 87% | 1 day ago 86% |
| Advances ODDS (%) | 6 days ago 87% | 11 days ago 86% |
| Declines ODDS (%) | 1 day ago 83% | 1 day ago 84% |
| BollingerBands ODDS (%) | 1 day ago 86% | 1 day ago 90% |
| Aroon ODDS (%) | 1 day ago 90% | 1 day ago 88% |
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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 73% 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% | -1.74% | ||
| ONTO - FTEC | 73% Closely correlated | -2.89% | ||
| Q - FTEC | 71% Closely correlated | -3.53% | ||
| VSH - FTEC | 70% Closely correlated | -4.21% | ||
| COHR - FTEC | 67% Closely correlated | -6.00% | ||
| ANET - FTEC | 66% Loosely correlated | -4.52% | ||
More | ||||
IGV and
Correlation & Price change
A.I.dvisor indicates that over the last year, IGV has been closely correlated with RBRK. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if IGV jumps, then RBRK could also see price increases.
| Ticker / NAME | Correlation To IGV | 1D Price Change % | ||
|---|---|---|---|---|
| IGV | 100% | -0.26% | ||
| RBRK - IGV | 76% Closely correlated | -0.45% | ||
| NOW - IGV | 74% Closely correlated | +1.58% | ||
| CRM - IGV | 73% Closely correlated | +0.12% | ||
| ZETA - IGV | 72% Closely correlated | -1.66% | ||
| ESTC - IGV | 71% Closely correlated | -1.02% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| BBHL | 17.79 | N/A | +0.01% |
| BBH Select Large Cap ETF (BBHL) | |||
| NXUS | 24.36 | -0.01 | -0.06% |
| NuShares ETF Trust Nuveen International Aggregate Bond ETF (NXUS) | |||
| MFUL | 21.79 | -0.03 | -0.12% |
| Collaborative Investment - Mindful Conservative ETF (MFUL) | |||
| DAK | 29.54 | -0.16 | -0.54% |
| Dakota Active Equity ETF (DAK) | |||
| MINV | 42.47 | -0.29 | -0.68% |
| Matthews Asia Innovators Active ETF (MINV) | |||