If you’re looking for a good long-term investment, an exchange-traded fund (ETF) that’s focused on the technology sector is a great place to look. The sector has driven the market to new highs for the past decade and has been one of the top-performing sectors for decades, even through periods of volatility.
As you seek out the right technology-focused ETF to invest in, know that they’re not all the same. Some invest in a much broader swath of the sector, while others are more concentrated and focus on just information technology, for example, or some other area. Some look at just large caps, while others include smaller companies, too. Some have higher fees.
Two of the best and most popular options are the Fidelity MSCI Information Technology Index ETF (NYSEMKT: FTEC) and the State Street Technology Select SPDR Fund (NYSEMKT: XLK). These ETFs have some key differences. Let’s examine both of them to see which is the better buy.