TEC vs VXUS

Quick Verdict

VXUS has a lower expense ratio. TEC delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: TECMore Diversified: VXUS

Side-by-Side Comparison

MetricTECVXUSWinner
Expense Ratio0.69%0.05%
AUM$6M$156.5B
Dividend Yield0.00%2.60%
Holdings438,747
YTD Return+20.00%+14.57%
1Y Return+32.06%+27.82%
3Y Return (annualized)-+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)22.8%15.1%
Max Drawdown-17.5%-39.9%
Fund FamilyHarbor FundsVanguard (US)
CategoryEquityEquity
InceptionApr 16, 2025Jan 26, 2011

TEC vs VXUS Performance

Harbor Transformative Technologies ETF (TEC) is a ETF from Harbor Funds and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TEC returned +32.06% while VXUS returned +27.82%. Year to date, TEC is up 20.00% versus a gain of 14.57% for VXUS.

Risk: Volatility and Drawdowns

TEC has been the more volatile fund, with annualized monthly volatility of 22.8% compared with 15.1% for VXUS. 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 -17.5% for TEC and -39.9% for VXUS. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TEC charges 0.69% per year while VXUS charges 0.05%. On a $10,000 position that is $69 vs $5 annually, a gap of $64 per year that compounds over a long holding period. On income, TEC currently yields 0.00% against 2.60% for VXUS.

Holdings Overlap

2.3%overlap

TEC and VXUS share 4 holdings out of 7899 unique holdings combined, representing a 2.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in TECWeight in VXUSDifference
ASML:AS1.85%1.29%0.56%
AZN:LN0.92%0.71%0.21%
SHOP:CA1.09%0.33%0.76%
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Frequently Asked Questions

Which is cheaper, TEC or VXUS?

TEC has an expense ratio of 0.69% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $64 per year of difference.

Which performed better, TEC or VXUS?

Over the past year TEC returned +32.06% vs +27.82% for VXUS, so TEC leads on 1-year performance. Over the longest common window we track (1 years), TEC annualized +52.61% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, TEC or VXUS?

TEC has been the more volatile fund at 22.8% annualized versus 15.1% for VXUS. Worst drawdown: TEC -17.5% vs VXUS -39.9%.

Should I hold both TEC and VXUS?

TEC and VXUS have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TEC and VXUS?

TEC and VXUS share 4 common holdings with a 2.3% weight overlap. Combined, they hold 7899 unique securities.

Which pays a higher dividend, TEC or VXUS?

TEC yields 0.00% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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