TEC vs VYM
Harbor Transformative Technologies ETF vs Vanguard High Dividend Yield ETF
Which is better, TEC or VYM?
Large Cap Growth against Large Cap Value.
VYM has a lower expense ratio. TEC led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TEC | VYM |
|---|---|---|
| Expense Ratio | 0.69% | 0.04%Best |
| AUM | $7M | $81.6B |
| Dividend Yield | 0.00% | 2.22% |
| Holdings | 45 | 613 |
| YTD Return | +18.95%Best | +11.35% |
| 1Y Return | +21.89%Best | +15.34% |
| 3Y Return (annualized) | - | +17.22% |
| 5Y Return (annualized) | - | +12.30% |
| Volatility (annualized) | 22.0% | 9.3%Best |
| Max Drawdown | -17.5% | -6.7%Best |
| $10,000 over 1.4 years | $17,079Best | $13,536 |
| Top 10 Weight | 52.2% | 26.1%Best |
| Fund Family | Harbor Funds | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Apr 16, 2025 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 1.4 years row, are measured over the window both funds cover: Apr 17, 2025 to Sep 18, 2026 (1.4 years).
TEC vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.4 years both funds cover.
TEC vs VYM Performance
Harbor Transformative Technologies ETF (TEC) is an ETF from Harbor Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TEC returned +21.89% while VYM returned +15.34%. Year to date, TEC is up 18.95% versus a gain of 11.35% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEC has been the more volatile fund, with annualized monthly volatility of 22.0% compared with 9.3% 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 -17.5% for TEC and -6.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.37. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TEC 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, TEC currently yields 0.00% against 2.22% for VYM.
Holdings Overlap
7.5% of TEC's money is in holdings VYM also owns. 9.0% of VYM's money is in holdings TEC also owns.
VYM and TEC share little of their money.
3 positions in common, counted across the 44 positions we hold weights for in TEC and 557 in VYM, against full books of 45 and 613.
What only one of them owns
Our book lists 525 positions for VYM that do not appear in our book for TEC (88.1% of the fund), and 36 for TEC that do not appear in VYM (82.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of TEC and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, TEC or VYM?
TEC has an expense ratio of 0.69% while VYM charges 0.04%. VYM is the cheaper option, by $65 a year on a $10,000 investment.
Which performed better, TEC or VYM?
Over the past year TEC returned +21.89% vs +15.34% for VYM, so TEC leads on 1-year performance. Over the longest common window we track (1 years), TEC annualized +46.57% vs +24.14% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TEC or VYM?
TEC has been the more volatile fund at 22.0% annualized versus 9.3% for VYM. Worst drawdown: TEC -17.5% vs VYM -6.7%.
Should I hold both TEC and VYM?
TEC and VYM have a monthly-return correlation of 0.37, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between TEC and VYM?
9.0% of VYM's money is in holdings TEC also owns. 9.0% of VYM's is in holdings TEC also owns. They hold 3 positions in common, counted across the 44 positions we hold weights for in TEC and 557 in VYM.
Which pays a higher dividend, TEC or VYM?
TEC yields 0.00% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than TEC?
VYM has a lower expense ratio. TEC led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.