TECB vs VYM

Quick Verdict

VYM has a lower expense ratio. TECB delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: TECBMore Diversified: VYM

Side-by-Side Comparison

MetricTECBVYMWinner
Expense Ratio0.30%0.04%
AUM$454M$79.0B
Dividend Yield0.30%2.86%
Holdings177568
YTD Return+22.59%+15.80%
1Y Return+29.89%+26.12%
3Y Return (annualized)+25.71%+18.25%
5Y Return (annualized)+12.29%+12.51%
Volatility (annualized)21.8%14.6%
Max Drawdown-41.6%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJan 8, 2020Nov 10, 2006

TECB vs VYM Performance

iShares US Tech Breakthrough Multisector ETF (TECB) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TECB returned +29.89% while VYM returned +26.12%. Year to date, TECB is up 22.59% versus a gain of 15.80% for VYM.

Over three years, TECB compounded at +25.71% per year against +18.25% for VYM; over five years the annualized figures are +12.29% and +12.51% respectively. Across the full 7-year window we track, TECB has the edge at +18.06% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TECB has been the more volatile fund, with annualized monthly volatility of 21.8% 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 -41.6% for TECB 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TECB charges 0.30% per year while VYM charges 0.04%. On a $10,000 position that is $30 vs $4 annually, a gap of $26 per year that compounds over a long holding period. On income, TECB currently yields 0.30% against 2.86% for VYM.

Holdings Overlap

5.7%overlap

TECB and VYM share 16 holdings out of 713 unique holdings combined, representing a 5.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in TECBWeight in VYMDifference
MRK4.04%1.37%2.67%
TXN2.92%0.85%2.07%
IBM2.24%0.98%1.26%
ADIProProPro
QCOMProProPro
BKRProProPro
MCHPProProPro
EBAYProProPro
NTAPProProPro
FISProProPro
See all 10 holdings TECB shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, TECB or VYM?

TECB has an expense ratio of 0.30% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, TECB or VYM?

Over the past year TECB returned +29.89% vs +26.12% for VYM, so TECB leads on 1-year performance. Over the longest common window we track (7 years), TECB annualized +18.06% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, TECB or VYM?

TECB has been the more volatile fund at 21.8% annualized versus 14.6% for VYM. Worst drawdown: TECB -41.6% vs VYM -58.8%.

Should I hold both TECB and VYM?

TECB and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TECB and VYM?

TECB and VYM share 16 common holdings with a 5.7% weight overlap. Combined, they hold 713 unique securities.

Which pays a higher dividend, TECB or VYM?

TECB yields 0.30% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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