TECS vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricTECSVYMWinner
Expense Ratio1.01%0.04%
AUM$77M$79.0B
Dividend Yield89.69%2.86%
Holdings12568
YTD Return-64.48%+15.80%
1Y Return-73.89%+26.12%
3Y Return (annualized)-64.18%+18.25%
5Y Return (annualized)-56.54%+12.51%
Volatility (annualized)51.9%14.6%
Max Drawdown-100.0%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionDec 17, 2008Nov 10, 2006

TECS vs VYM Performance

Direxion Daily Technology Bear 3X ETF (TECS) 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 TECS returned -73.89% while VYM returned +26.12%. Year to date, TECS is down 64.48% versus a gain of 15.80% for VYM.

Over three years, TECS compounded at -64.18% per year against +18.25% for VYM; over five years the annualized figures are -56.54% and +12.51% respectively. Across the full 18-year window we track, VYM has the edge at +7.07% annualized vs -57.94%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TECS has been the more volatile fund, with annualized monthly volatility of 51.9% 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 -100.0% for TECS 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 -0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TECS charges 1.01% per year while VYM charges 0.04%. On a $10,000 position that is $101 vs $4 annually, a gap of $97 per year that compounds over a long holding period. On income, TECS currently yields 89.69% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TECS and VYM share 0 holdings out of 562 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, TECS or VYM?

TECS has an expense ratio of 1.01% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $97 per year of difference.

Which performed better, TECS or VYM?

Over the past year TECS returned -73.89% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), TECS annualized -57.94% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, TECS or VYM?

TECS has been the more volatile fund at 51.9% annualized versus 14.6% for VYM. Worst drawdown: TECS -100.0% vs VYM -58.8%.

Should I hold both TECS and VYM?

TECS and VYM have a monthly-return correlation of -0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TECS and VYM?

TECS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.

Which pays a higher dividend, TECS or VYM?

TECS yields 89.69% while VYM yields 2.86%, so TECS currently pays the higher dividend yield.

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