TECB vs VYM
TECB vs VYM
iShares US Tech Breakthrough Multisector ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TECB delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | TECB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.04% | |
| AUM | $454M | $79.0B | |
| Dividend Yield | 0.30% | 2.86% | |
| Holdings | 177 | 568 | |
| 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 Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 8, 2020 | Nov 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
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
| Stock | Weight in TECB | Weight in VYM | Difference |
|---|---|---|---|
| MRK | 4.04% | 1.37% | 2.67% |
| TXN | 2.92% | 0.85% | 2.07% |
| IBM | 2.24% | 0.98% | 1.26% |
| ADI | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| BKR | Pro | Pro | Pro |
| MCHP | Pro | Pro | Pro |
| EBAY | Pro | Pro | Pro |
| NTAP | Pro | Pro | Pro |
| FIS | Pro | Pro | Pro |
See all 10 holdings TECB shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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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