SECT vs VYM
SECT vs VYM
Main Sector Rotation ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | SECT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.04% | |
| AUM | $2.8B | $79.0B | |
| Dividend Yield | 0.72% | 2.86% | |
| Holdings | 14 | 568 | |
| YTD Return | +12.86% | +15.80% | |
| 1Y Return | +24.09% | +26.12% | |
| 3Y Return (annualized) | +18.97% | +18.25% | |
| 5Y Return (annualized) | +12.37% | +12.51% | |
| Volatility (annualized) | 20.2% | 14.6% | |
| Max Drawdown | -50.1% | -58.8% | |
| Fund Family | Main Management ETF Advisors, LLC | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 5, 2017 | Nov 10, 2006 |
SECT vs VYM Performance
Main Sector Rotation ETF (SECT) is a ETF from Main Management ETF Advisors, LLC and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SECT returned +24.09% while VYM returned +26.12%. Year to date, SECT is up 12.86% versus a gain of 15.80% for VYM.
Over three years, SECT compounded at +18.97% per year against +18.25% for VYM; over five years the annualized figures are +12.37% and +12.51% respectively. Across the full 10-year window we track, SECT has the edge at +7.21% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SECT has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -50.1% for SECT and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SECT charges 0.69% per year while VYM charges 0.04%. On a $10,000 position that is $69 vs $4 annually, a gap of $65 per year that compounds over a long holding period. On income, SECT currently yields 0.72% against 2.86% for VYM.
Holdings Overlap
SECT and VYM share 0 holdings out of 568 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SECT or VYM?
SECT has an expense ratio of 0.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, SECT or VYM?
Over the past year SECT returned +24.09% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), SECT annualized +7.21% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, SECT or VYM?
SECT has been the more volatile fund at 20.2% annualized versus 14.6% for VYM. Worst drawdown: SECT -50.1% vs VYM -58.8%.
Should I hold both SECT and VYM?
SECT and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SECT and VYM?
SECT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 568 unique securities.
Which pays a higher dividend, SECT or VYM?
SECT yields 0.72% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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