FTEC vs SPYM

FTECAFidelity MSCI Information Technology Index ETF

SPYMAState Street SPDR Portfolio S&P 500 ETF

In short

FTEC Fidelity's tech sleeve runs 0.08% a year and holds about 300 names, tracking an MSCI index that reaches from mega-cap chipmakers down into small-cap software. Cheap beta on the whole US tech stack, not just the giants.

SPYM State Street's budget-priced S&P 500 tracker: the same 500 large caps as its famous sibling, for 0.02% a year, the lowest fee in its S&P 500 peer group. Running since 2005 and now one of the category's giants.

Stated mandate

FTEC Seeks to track, before fees and expenses, the performance of the MSCI USA IMI Information Technology Index.

SPYM The fund seeks to track the total return of the S&P 500 Index before fees and expenses, providing broad exposure to U.S. large-cap equities.

Why people hold it

• FTEC At 0.08%, it ties the cheapest fund in its broad-tech group and undercuts VGT's 0.09%, against a cohort median of 0.40%. On a sector sleeve, that gap compounds quietly.
• The MSCI USA IMI benchmark covers large, mid and small cap US tech, so the roughly 300 holdings stretch past the mega-cap tier alone.msci.com
• Trading since 2013 and now a multi-billion-dollar fund, it sits in the top quartile of its broad technology peer group.

• SPYM 0.02% a year, the cheapest fee in its S&P 500 cohort, against a 0.15% median for the group. Two dollars a year per $10,000 invested.
• Same S&P 500 index as State Street's flagship SPY (0.09%), for a fraction of the fee, and a basis point under VOO and IVV.
• Tracks the index tightly: gaps between fund and benchmark are among the smallest in its peer group, which is the whole job of an index wrapper.
• Live since 2005, now one of the largest and most heavily traded funds in the category. Distributions land quarterly.

Worth knowing

• FTEC Membership follows GICS Information Technology, so several household-name tech businesses classified into other sectors never show up here.msci.com
• One sector, one story: tech moves harder than the broad market in both directions, and roughly 300 names does not soften that.
• Distributions arrive quarterly, and a growth-heavy sector index is not built around payouts.

• SPYM The S&P 500 is cap-weighted, so the biggest US companies drive most of the move. Equal-weight takes on the same index (RSP) spread that bet differently.
• About 500 US large caps and nothing else: no mid caps, no small caps, no international.
• The fee edge over VOO and IVV is one basis point. Same index, so trading costs and platform access matter as much as the sticker fee.

Full FTEC profile⁠

Full SPYM profile⁠