TEC vs VYM
TEC vs VYM
Harbor Transformative Technologies ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TEC delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | TEC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.04% | |
| AUM | $6M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 43 | 568 | |
| YTD Return | +20.00% | +15.80% | |
| 1Y Return | +32.06% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 22.8% | 14.6% | |
| Max Drawdown | -17.5% | -58.8% | |
| Fund Family | Harbor Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 16, 2025 | Nov 10, 2006 |
TEC vs VYM Performance
Harbor Transformative Technologies ETF (TEC) is a ETF from Harbor Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TEC returned +32.06% while VYM returned +26.12%. Year to date, TEC is up 20.00% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
TEC has been the more volatile fund, with annualized monthly volatility of 22.8% 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 -17.5% for TEC 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.86% for VYM.
Holdings Overlap
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. On a $10,000 investment, that is $65 per year of difference.
Which performed better, TEC or VYM?
Over the past year TEC returned +32.06% vs +26.12% for VYM, so TEC leads on 1-year performance. Over the longest common window we track (1 years), TEC annualized +52.61% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TEC or VYM?
TEC has been the more volatile fund at 22.8% annualized versus 14.6% for VYM. Worst drawdown: TEC -17.5% vs VYM -58.8%.
Should I hold both TEC and VYM?
TEC and VYM have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TEC and VYM?
TEC and VYM share 2 common holdings with a 7.2% weight overlap. Combined, they hold 598 unique securities.
Which pays a higher dividend, TEC or VYM?
TEC yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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