TECL vs VYM
Direxion Daily Technology Bull 3X ETF vs Vanguard High Dividend Yield ETF
Which is better, TECL or VYM?
Trading-Leveraged Equity against Large Cap Value.
VYM has a lower expense ratio. TECL led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 62.3%.
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 | TECL | VYM |
|---|---|---|
| Expense Ratio | 0.87% | 0.04%Best |
| AUM | $5.7B | $81.6B |
| Dividend Yield | 4.11% | 2.22% |
| Holdings | 87 | 613 |
| YTD Return | +75.42%Best | +12.29% |
| 1Y Return | +97.57%Best | +16.61% |
| 3Y Return (annualized) | +66.90%Best | +17.42% |
| 5Y Return (annualized) | +28.48%Best | +12.12% |
| Volatility (annualized) | 59.8% | 13.1%Best |
| Max Drawdown | -78.0% | -35.7%Best |
| $10,000 over 5 years | $35,009Best | $17,718 |
| Top 10 Weight | 62.3% | 26.1%Best |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Trading-Leveraged Equity | Large Cap Value |
| Inception | Dec 17, 2008 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 29, 2012 to Sep 17, 2026 (14.2 years).
TECL 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
TECL vs VYM Performance
Direxion Daily Technology Bull 3X ETF (TECL) is an ETF from Direxion Shares ETF Trust and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TECL returned +97.57% while VYM returned +16.61%. Year to date, TECL is up 75.42% versus a gain of 12.29% for VYM.
Over three years, TECL compounded at +66.90% per year against +17.42% for VYM; over five years the annualized figures are +28.48% and +12.12% respectively. Across the full 14-year window we track, TECL has the edge at +44.39% annualized vs +10.07%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECL has been the more volatile fund, with annualized monthly volatility of 59.8% compared with 13.1% 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 -78.0% for TECL and -35.7% 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 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TECL charges 0.87% per year while VYM charges 0.04%. On a $10,000 position that is $87 vs $4 annually, a gap of $83 per year that compounds over a long holding period. On income, TECL currently yields 4.11% against 2.22% for VYM.
Holdings Overlap
12.8% of TECL's money is in holdings VYM also owns. 15.4% of VYM's money is in holdings TECL also owns.
VYM and TECL share little of their money.
19 positions in common, counted across the 76 positions we hold weights for in TECL and 557 in VYM, against full books of 87 and 613.
What only one of them owns
Our book lists 509 positions for VYM that do not appear in our book for TECL (81.7% of the fund), and 57 for TECL 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.
Top Shared Holdings
| Stock | Weight in TECL | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.40% | 7.35% | 3.95% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.06% | 1.86% | 0.20% |
| TXNTexas Instrument Inc | 1.09% | 1.02% | 0.07% |
| ORCLOracle Corp - Common | 1.14% | 0.90% | 0.24% |
| IBMInternational Business Machines Corp. | 1.03% | 0.85% | 0.18% |
| ADIAnalog Devices, Inc. | 0.82% | 0.73% | 0.09% |
| QCOMQualcomm Inc. | 0.83% | 0.63% | 0.20% |
| DELLDell Technologies Inc | 0.58% | 0.50% | 0.08% |
| HPEHewlett Packard Enterprise Co | 0.32% | 0.26% | 0.06% |
| TELTe Connectivity Plc Common Stock Usd | 0.29% | 0.24% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of TECL 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, TECL or VYM?
TECL has an expense ratio of 0.87% while VYM charges 0.04%. VYM is the cheaper option, by $83 a year on a $10,000 investment.
Which performed better, TECL or VYM?
Over the past year TECL returned +97.57% vs +16.61% for VYM, so TECL leads on 1-year performance. Over the longest common window we track (14 years), TECL annualized +44.39% vs +10.07% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TECL or VYM?
TECL has been the more volatile fund at 59.8% annualized versus 13.1% for VYM. Worst drawdown: TECL -78.0% vs VYM -35.7%.
Should I hold both TECL and VYM?
TECL and VYM have a monthly-return correlation of 0.64, 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 TECL and VYM?
15.4% of VYM's money is in holdings TECL also owns. 15.4% of VYM's is in holdings TECL also owns. They hold 19 positions in common, counted across the 76 positions we hold weights for in TECL and 557 in VYM.
Which pays a higher dividend, TECL or VYM?
TECL yields 4.11% while VYM yields 2.22%, so TECL currently pays the higher dividend yield.
Is VYM better than TECL?
VYM has a lower expense ratio. TECL led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 62.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.