TECL vs VYM
TECL vs VYM
Direxion Daily Technology Bull 3X ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TECL delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | TECL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.87% | 0.04% | |
| AUM | $5.0B | $79.0B | |
| Dividend Yield | 3.62% | 2.86% | |
| Holdings | 86 | 568 | |
| YTD Return | +79.46% | +15.80% | |
| 1Y Return | +117.94% | +26.12% | |
| 3Y Return (annualized) | +66.03% | +18.25% | |
| 5Y Return (annualized) | +29.51% | +12.51% | |
| Volatility (annualized) | 60.1% | 14.6% | |
| Max Drawdown | -78.0% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Nov 10, 2006 |
TECL vs VYM Performance
Direxion Daily Technology Bull 3X ETF (TECL) is a ETF from Direxion Shares ETF Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TECL returned +117.94% while VYM returned +26.12%. Year to date, TECL is up 79.46% versus a gain of 15.80% for VYM.
Over three years, TECL compounded at +66.03% per year against +18.25% for VYM; over five years the annualized figures are +29.51% and +12.51% respectively. Across the full 14-year window we track, TECL has the edge at +45.05% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECL has been the more volatile fund, with annualized monthly volatility of 60.1% 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 -78.0% for TECL 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.62% against 2.86% for VYM.
Holdings Overlap
TECL and VYM share 19 holdings out of 617 unique holdings combined, representing a 10.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in TECL | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 3.75% | 6.47% | 2.72% |
| CSCO | 1.82% | 1.39% | 0.43% |
| IBM | 1.02% | 0.98% | 0.04% |
| TXN | Pro | Pro | Pro |
| ADI | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| GLW | Pro | Pro | Pro |
| STX | Pro | Pro | Pro |
| ACN | Pro | Pro | Pro |
| DELL | Pro | Pro | Pro |
See all 10 holdings TECL shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $83 per year of difference.
Which performed better, TECL or VYM?
Over the past year TECL returned +117.94% vs +26.12% for VYM, so TECL leads on 1-year performance. Over the longest common window we track (14 years), TECL annualized +45.05% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TECL or VYM?
TECL has been the more volatile fund at 60.1% annualized versus 14.6% for VYM. Worst drawdown: TECL -78.0% vs VYM -58.8%.
Should I hold both TECL and VYM?
TECL and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TECL and VYM?
TECL and VYM share 19 common holdings with a 10.9% weight overlap. Combined, they hold 617 unique securities.
Which pays a higher dividend, TECL or VYM?
TECL yields 3.62% while VYM yields 2.86%, so TECL currently pays the higher dividend yield.
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