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ETF Overlap Tool: FTEC vs QQQ

Compare portfolio holdings overlap, tech concentration risk, and expense ratio differences between Fidelity MSCI Information Technology Index ETF (FTEC) and Invesco QQQ Trust (QQQ).

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ETF Overlap Overview & Key Metrics
FTEC (300 Total) QQQ (101 Total) ONLY IN FTEC 255 Stocks (53.6% Weight) MODERATE TECH OVERLAP 45 Shared Stocks (83.2%) 42.5% Weight Duplication ONLY IN QQQ 56 Stocks (53.6% Weight)
Overlap by Weight
42.5%
⚡ Moderate Tech Overlap
Expense Ratio Gap
0.084% vs 0.20%
FTEC is 2.4x cheaper than QQQ
Unique Holdings
419 vs 56 Stocks
~53.6% Weight Difference
Sector Allocation Breakdown
Information Technology
99.29%
Industrials
0.32%
Financials
0.31%
Consumer Discretionary
0.08%
Information Technology
58.17%
Communication Services
12.99%
Consumer Discretionary
11.29%
Consumer Staples
6.5%
Healthcare
4.13%
Industrials
3.97%
Utilities
1.16%
Materials
1.02%
Energy
0.53%
Financials
0.24%

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Stock Holdings Breakdown (FTEC vs QQQ)

73 Assets
Asset Sector FTEC Weight QQQ Weight Combined (50/50) Status

FTEC vs QQQ: Portfolio Overlap & Investment Strategy Guide

When evaluating Fidelity MSCI Information Technology Index ETF (FTEC) versus Invesco QQQ Trust (QQQ), investors are comparing two distinct ETF strategies. FTEC holds 300 total assets while QQQ contains 101 total assets. Across both portfolios, they share 24 common stock holdings, representing a 42.5% portfolio overlap by weight.

Sector Concentration & Shared Stock Holdings

While both funds invest in equity markets, their internal sector allocations create meaningful differences in portfolio performance and volatility:

  • Primary Sector Focus: FTEC concentrates its largest allocation in Information Technology (99.29%), whereas QQQ allocates its highest weighting to Information Technology (58.17%).
  • Top Shared Holdings: Key overlapping stocks held in both funds include NVIDIA Corporation (NVDA), Apple Inc (AAPL), Microsoft Corporation (MSFT), Micron Technology, Inc (MU).
  • Holdings Distribution: FTEC features 300 holdings compared to 101 holdings in QQQ, affecting single-stock concentration risk.

Strategic Portfolio Insight: Moderate Overlap & Balanced Dual Exposure

Combining FTEC and QQQ creates a moderate portfolio overlap of 42.5% by weight. While they share 24 common holdings, each ETF offers distinct sector weightings and strategy tilts that can complement a broader asset allocation strategy.

Expense Ratio Comparison & Performance: FTEC vs QQQ

Beyond portfolio holdings overlap, fund management fees, dividend yields, and sector diversification play a vital role in long-term compounding returns:

1. Annual Management Fee Impact

FTEC charges a lower expense ratio of 0.08% compared to QQQ at 0.20%. FTEC is 2.4x cheaper, saving long-term investors approximately $12 per year for every $100,000 invested.

2. Volatility, Risk & Long-Term Growth Potential

FTEC and QQQ react differently to changing interest rates, market cycles, and sector rotations. Diversifying across funds with different underlying indexes helps reduce portfolio drawdown risk during broader market corrections.

Snowball Portfolio Lab Insight

Want to analyze how combining FTEC and QQQ impacts your total portfolio yield, sector distribution, and historical dividend income? Model your custom asset allocation in the Snowball Analytics Portfolio Lab.

Frequently Asked Questions: FTEC vs QQQ ETF Overlap
What is the portfolio overlap percentage between FTEC and QQQ?
Fidelity MSCI Information Technology Index ETF (FTEC) and Invesco QQQ Trust (QQQ) have a 42.5% overlap by weight and share 24 identical stock holdings. FTEC holds 300 total assets while QQQ holds 101 total assets.
What is the main difference between FTEC and QQQ?
The main difference between FTEC and QQQ lies in sector allocation, expense ratio, and portfolio breadth:
  • Sector Focus: FTEC's largest sector is Information Technology (99.29%), whereas QQQ's largest sector is Information Technology (58.17%).
  • Expense Ratio: FTEC has an expense ratio of 0.08%, while QQQ charges 0.20%. FTEC is 2.4x cheaper than QQQ.
  • Portfolio Breadth: FTEC holds 300 total stocks vs QQQ's 101 stocks.
Is it good to hold both FTEC and QQQ in the same portfolio?
Holding both FTEC and QQQ results in a 42.5% portfolio weight overlap across 24 common holdings. With a moderate weight overlap of 42.5%, holding both FTEC and QQQ can provide balanced dual exposure if you want to tilt toward specific sector weightings while maintaining broader market coverage.
Which ETF has lower management expense fees: FTEC or QQQ?
FTEC has an expense ratio of 0.08%, while QQQ charges 0.20%. FTEC is 2.4x cheaper than QQQ.
Which ETF is better for long-term investors: FTEC or QQQ?
The ideal choice depends on your investment strategy: FTEC (0.08% expense ratio) provides exposure to Fidelity MSCI Information Technology Index ETF, while QQQ (0.20% expense ratio) offers exposure to Invesco QQQ Trust. Comparing sector concentration and historical volatility helps align your choice with long-term goals.
Do FTEC and QQQ pay dividends?
Yes, both FTEC and QQQ pay quarterly dividend distributions to shareholders derived from underlying dividend payments of portfolio companies.