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FTEC vs IYW
Which ETF would AI Choose? Fidelity MSCI Information Technology Index ETF (FTEC) vs. iShares U.S. Technology ETF (IYW)
Key Takeaways
- FTEC tracks the MSCI USA IMI Information Technology 25/50 Index with a focus strictly on the Information Technology sector per GICS classification, while IYW follows the Russell 1000 Technology RIC 22.5/45 Capped Index, which includes technology-enabled companies from adjacent sectors such as Media & Entertainment.
- FTEC offers lower costs with an expense ratio of 0.08%, compared to IYW’s 0.37%, making it more cost-efficient for long-term buy-and-hold investors seeking broad tech exposure.
- FTEC holds approximately 280–295 securities with high concentration in the largest names, whereas IYW maintains fewer holdings (around 148–150) and applies index caps that limit individual stock weights.
- Both ETFs exhibit similar top holdings including NVIDIA Corporation (NVDA), Apple Inc. (AAPL), and Microsoft Corporation (MSFT), but IYW incorporates greater weighting in companies like Meta Platforms Inc. (META) and Alphabet Inc. (GOOGL/GOOG).
- FTEC provides purer Information Technology sector exposure at nearly 99% allocation, while IYW delivers diversified technology access with notable allocations to semiconductors, software, and hardware alongside media and entertainment.
- Structural differences in index methodology and expense ratios position FTEC as a lower-cost, sector-pure option and IYW as a broader, capped alternative within the U.S. technology theme.
Introduction
Investors seeking targeted U.S. technology exposure often compare sector-focused exchange-traded funds (ETFs) such as FTEC and IYW. These funds do not compete directly as identical products but instead offer alternative strategies within the same broad theme. FTEC delivers precise alignment with the Information Technology sector, while IYW provides access to a wider set of technology and technology-enabled companies. Both serve investors aiming to participate in innovation-driven growth, semiconductor demand, and software advancements. Comparing their index methodologies, costs, and diversification profiles helps clarify which structure better matches specific portfolio objectives in the current environment of sustained technology investment.
Fidelity MSCI Information Technology Index ETF (FTEC) Overview
FTEC is a passively managed ETF that seeks to track the performance of the MSCI USA IMI Information Technology 25/50 Index before fees and expenses. The fund invests at least 80% of its assets in securities included in the index, which represents the U.S. equity market’s Information Technology sector according to the Global Industry Classification Standard (GICS). It holds approximately 280–295 securities and maintains a market-capitalization weighting approach with periodic rebalancing to reflect index changes. Top holdings typically include NVDA, AAPL, MSFT, Broadcom Inc. (AVGO), and Micron Technology Inc. (MU), with the top ten positions accounting for roughly 60–65% of assets. Sector allocation is overwhelmingly Information Technology at over 99%, with negligible exposure elsewhere. The expense ratio stands at 0.08%, supporting cost-efficient access. Launched in 2013, FTEC features strong liquidity as an established NYSE Arca-listed product.
iShares U.S. Technology ETF (IYW) Overview
IYW is a passively managed ETF designed to track the Russell 1000 Technology RIC 22.5/45 Capped Index. The fund generally invests at least 80% of assets in the index’s component securities, which measure the performance of U.S. technology and technology-enabled companies. It holds approximately 148–150 securities and employs market-capitalization weighting with caps that limit the influence of the largest constituents. Prominent holdings often feature NVDA, AAPL, MSFT, META, and AVGO, with the top ten representing around 60–65% of the portfolio. Sector allocations emphasize Semiconductors & Semiconductor Equipment, Software & Services, and Tech Hardware & Equipment, alongside meaningful exposure to Media & Entertainment. The expense ratio is 0.37%. Launched in 2000, IYW offers established liquidity on NYSE Arca and quarterly distributions.
Industry and Thematic Backdrop
The U.S. technology sector continues to benefit from structural demand for artificial intelligence infrastructure, cloud computing expansion, and semiconductor advancements. Capital flows into technology-related innovation remain robust amid ongoing digital transformation across industries. Macroeconomic drivers include corporate capital expenditure cycles and evolving interest rate expectations that influence growth-stock valuations. Regulatory developments around data privacy, antitrust scrutiny, and export controls on advanced chips represent ongoing considerations for sector participants. Broader risks encompass supply-chain dependencies, geopolitical tensions affecting global semiconductor production, and potential shifts in consumer and enterprise spending patterns. Both ETFs operate within this environment, where earnings growth from leading technology companies and sustained investment in next-generation technologies serve as primary catalysts.
Performance and Positioning Comparison
In recent market cycles, both ETFs have demonstrated sensitivity to earnings reports from dominant semiconductor and software companies, as well as broader sentiment around technology spending. FTEC’s stricter sector focus has contributed to tighter alignment with pure Information Technology performance, while IYW’s inclusion of technology-enabled names and index caps have moderated concentration risk during periods of outsized moves in individual mega-cap stocks. Relative positioning reflects differences in volatility profiles, with the capped methodology in IYW potentially providing modest stabilization compared to uncapped peers. Sector rotation dynamics and interest rate environments have influenced flows and relative returns over recent weeks and months, underscoring the importance of matching ETF structure to investor views on technology sub-sector leadership and overall market breadth.
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. Visit the AI Screener to explore data-driven insights tailored to individual investment criteria.
Tickeron AI Verdict
Based on observable structural factors, Tickeron’s AI would currently assign a modest probabilistic preference to FTEC. The lower expense ratio supports greater cost efficiency over extended holding periods, while the pure Information Technology sector alignment offers precise exposure without dilution from adjacent categories. IYW’s broader mandate and index caps provide diversification benefits that may appeal in certain volatility regimes, yet the higher fee and less concentrated sector definition introduce relative trade-offs. Final selection depends on an investor’s specific objectives regarding cost, sector purity, and risk tolerance.
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 IYW is a Hold.
FTEC in downward trend: price dove below 50-day moving average on October 29, 2026
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. In 33 of 34 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 53 of 65 cases where FTEC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 82%.
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 67 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 79%.
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 43 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 86%.
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 12 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 75%.
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 Indicator entered the oversold zone -- be on the watch for FTEC's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
Following a +2.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where FTEC advanced for three days, in 340 of 388 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 307 of 327 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%.
IYW in downward trend: price dove below 50-day moving average on October 29, 2026
IYW 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. In 30 of 32 similar past instances, the stock price decreased further within 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 IYW as a result. In 74 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 86%.
The Moving Average Convergence Divergence Histogram (MACD) for IYW 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 39 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
The 10-day moving average for IYW 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 11 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 69%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYW 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 entered the oversold zone -- be on the watch for IYW's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +1.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYW advanced for three days, in 323 of 371 cases, the price rose further within the following month. The odds of a continued upward trend are 87%.
IYW 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 296 of 318 cases where IYW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
| FTEC | IYW | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | 2 days ago 90% |
| Stochastic ODDS (%) | 2 days ago 82% | 2 days ago 90% |
| Momentum ODDS (%) | 2 days ago 79% | 2 days ago 86% |
| MACD ODDS (%) | 2 days ago 86% | 2 days ago 78% |
| TrendWeek ODDS (%) | 2 days ago 82% | 2 days ago 83% |
| TrendMonth ODDS (%) | 2 days ago 87% | 2 days ago 88% |
| Advances ODDS (%) | 7 days ago 88% | 7 days ago 87% |
| Declines ODDS (%) | 2 days ago 83% | 2 days ago 84% |
| BollingerBands ODDS (%) | 2 days ago 90% | 2 days ago 90% |
| Aroon ODDS (%) | 2 days ago 90% | 2 days ago 90% |
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IYW and
Correlation & Price change
A.I.dvisor indicates that over the last year, IYW has been closely correlated with ONTO. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if IYW jumps, then ONTO could also see price increases.
| Ticker / NAME | Correlation To IYW | 1D Price Change % | ||
|---|---|---|---|---|
| IYW | 100% | -2.56% | ||
| ONTO - IYW | 68% Closely correlated | -5.05% | ||
| Q - IYW | 67% Closely correlated | -1.11% | ||
| MKSI - IYW | 65% Loosely correlated | -2.72% | ||
| NXPI - IYW | 63% Loosely correlated | -0.91% | ||
| COHR - IYW | 63% Loosely correlated | -4.93% | ||
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