TECS vs VYM
Direxion Daily Technology Bear 3X ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | TECS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.04% | |
| AUM | $65M | $81.6B | |
| Dividend Yield | 7.32% | 2.24% | |
| Holdings | 12 | 616 | |
| YTD Return | -65.13% | +14.95% | |
| 1Y Return | -74.09% | +21.14% | |
| 3Y Return (annualized) | -64.41% | +18.69% | |
| 5Y Return (annualized) | -55.97% | +12.00% | |
| Volatility (annualized) | 51.9% | 14.6% | |
| Max Drawdown | -100.0% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Nov 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 -74.09% while VYM returned +21.14%. Year to date, TECS is down 65.13% versus a gain of 14.95% for VYM.
Over three years, TECS compounded at -64.41% per year against +18.69% for VYM; over five years the annualized figures are -55.97% and +12.00% respectively. Across the full 18-year window we track, VYM has the edge at +7.01% annualized vs -57.87%. 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 7.32% against 2.24% for VYM.
Holdings Overlap
TECS and VYM share 0 holdings out of 607 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 -74.09% vs +21.14% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), TECS annualized -57.87% vs +7.01% 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 607 unique securities.
Which pays a higher dividend, TECS or VYM?
TECS yields 7.32% while VYM yields 2.24%, so TECS currently pays the higher dividend yield.
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