QTEC vs VYM
First Trust NASDAQ-100-Technology Sector Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. QTEC delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | QTEC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.04% | |
| AUM | $4.9B | $81.6B | |
| Dividend Yield | 0.01% | 2.24% | |
| Holdings | 48 | 616 | |
| YTD Return | +36.43% | +14.84% | |
| 1Y Return | +46.38% | +20.88% | |
| 3Y Return (annualized) | +28.42% | +18.34% | |
| 5Y Return (annualized) | +13.44% | +12.04% | |
| Volatility (annualized) | 22.4% | 14.6% | |
| Max Drawdown | -58.9% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2006 | Nov 10, 2006 |
QTEC vs VYM Performance
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QTEC returned +46.38% while VYM returned +20.88%. Year to date, QTEC is up 36.43% versus a gain of 14.84% for VYM.
Over three years, QTEC compounded at +28.42% per year against +18.34% for VYM; over five years the annualized figures are +13.44% and +12.04% respectively. Across the full 20-year window we track, QTEC has the edge at +14.69% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QTEC has been the more volatile fund, with annualized monthly volatility of 22.4% 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 -58.9% for QTEC 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QTEC charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, QTEC currently yields 0.01% against 2.24% for VYM.
Holdings Overlap
QTEC and VYM share 6 holdings out of 644 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QTEC or VYM?
QTEC has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, QTEC or VYM?
Over the past year QTEC returned +46.38% vs +20.88% for VYM, so QTEC leads on 1-year performance. Over the longest common window we track (20 years), QTEC annualized +14.69% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, QTEC or VYM?
QTEC has been the more volatile fund at 22.4% annualized versus 14.6% for VYM. Worst drawdown: QTEC -58.9% vs VYM -58.8%.
Should I hold both QTEC and VYM?
QTEC and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QTEC and VYM?
QTEC and VYM share 6 common holdings with a 5.3% weight overlap. Combined, they hold 644 unique securities.
Which pays a higher dividend, QTEC or VYM?
QTEC yields 0.01% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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