vgt investors comparing Fidelity MSCI Information Technology Index ETF with iShares Semiconductor ETF face a clear split in cost and scope. Fidelity charges 0.08%, while the iShares fund charges 0.34%. The cheaper fund also spreads money across 286 holdings instead of a semiconductor-only lineup.
Fidelity MSCI Information Technology Index ETF
Fidelity MSCI Information Technology Index ETF tracks the MSCI USA IMI Information Technology 25/50 Index and launched in 2013. Nvidia Corp is its largest position at 18.8%, with Apple Inc at 14.29% and Microsoft Corp at 9.91%. That mix gives buyers exposure to several large technology names instead of forcing a single bet on chip makers.
iShares Semiconductor ETF
iShares Semiconductor ETF tracks a specialized index of U.S.-listed equities in the semiconductor sector and holds 30 companies. Micron Technology Inc is its top holding at 9.03%, followed by Broadcom Inc at 7.78% and Advanced Micro Devices Inc at 7.70%. The fund is 100.00% concentrated in the technology sector, so its returns rise and fall with one narrow industry.
Costs, yield and concentration
The iShares fund launched in 2001, years before Fidelity entered the market in 2013. Its trailing-12-month dividend was $1.67 per share, compared with $0.95 per share for Fidelity. The iShares ETF is up 73% this year, but that kind of move comes from the same concentration that leaves it more exposed to semiconductor swings.
For investors deciding between the two, the practical choice is straightforward: pay more for a narrower semiconductor wager, or pay less for broader technology exposure. The unresolved question is which profile fits a portfolio better over the next cycle, because the numbers here show different costs, different holdings counts and very different levels of concentration.
