TEQI vs VYM

TEQI vs VYM

Which is better, TEQI or VYM?

Nearly the same fund. VYM costs less.

VYM has a lower expense ratio. TEQI led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.96. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 28.5%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricTEQIVYM
Expense Ratio0.54%0.04%Best
AUM$471M$81.6B
Dividend Yield1.46%2.22%
Holdings115613
YTD Return+14.76%Best+11.71%
1Y Return+21.11%Best+16.24%
3Y Return (annualized)+16.33%+17.24%Best
5Y Return (annualized)+10.66%+11.86%Best
Volatility (annualized)15.5%13.9%Best
Max Drawdown-17.8%-15.8%Best
$10,000 over 5 years$16,594$17,514Best
Top 10 Weight28.5%26.1%Best
Fund FamilyT.Rowe PriceVanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionAug 4, 2020Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Aug 5, 2020 to Sep 16, 2026 (6.1 years).

TEQI 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 covers the 6.1 years both funds cover.

TEQI vs VYM Performance

T. Rowe Price Equity Income ETF (TEQI) is an ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TEQI returned +21.11% while VYM returned +16.24%. Year to date, TEQI is up 14.76% versus a gain of 11.71% for VYM.

Over three years, TEQI compounded at +16.33% per year against +17.24% for VYM; over five years the annualized figures are +10.66% and +11.86% respectively. Across the full 6-year window we track, TEQI has the edge at +14.67% annualized vs +14.44%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TEQI has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 13.9% 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 -17.8% for TEQI and -15.8% 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

TEQI charges 0.54% per year while VYM charges 0.04%. On a $10,000 position that is $54 vs $4 annually, a gap of $50 per year that compounds over a long holding period. On income, TEQI currently yields 1.46% against 2.22% for VYM.

Holdings Overlap

TEQI already in VYM57.7%
VYM already in TEQI38.5%

57.7% of TEQI's money is in holdings VYM also owns. 38.5% of VYM's money is in holdings TEQI also owns.

The two portfolios partly overlap.

71 positions in common, counted across the 111 positions we hold weights for in TEQI and 557 in VYM, against full books of 115 and 613.

What only one of them owns

Our book lists 458 positions for VYM that do not appear in our book for TEQI (59.0% of the fund), and 33 for TEQI that do not appear in VYM (34.0%).

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

StockWeight in TEQIWeight in VYMDifference
JPMJpmorgan Chase1.79%3.82%2.03%
XOMExxon Mobil Corp.1.26%2.63%1.37%
JNJJohnson & Johnson - Common0.70%2.51%1.81%
CSCOCisco Systems Inc. - Ordinary Shares1.00%1.86%0.86%
BACBank of America Corp.: Financials1.08%1.66%0.58%
CCitigroup Inc.1.63%0.89%0.74%
PGProcter & Gamble Company1.13%1.37%0.24%
METMetlife Inc.2.25%0.21%2.04%
UNHUnitedhealth Group Incorporated0.92%1.52%0.60%
CVXChevron Corp0.93%1.48%0.55%

57.7% of TEQI is already inside VYM.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

TEQIVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, TEQI or VYM?

TEQI has an expense ratio of 0.54% while VYM charges 0.04%. VYM is the cheaper option, by $50 a year on a $10,000 investment.

Which performed better, TEQI or VYM?

Over the past year TEQI returned +21.11% vs +16.24% for VYM, so TEQI leads on 1-year performance. Over the longest common window we track (6 years), TEQI annualized +14.67% vs +14.44% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, TEQI or VYM?

TEQI has been the more volatile fund at 15.5% annualized versus 13.9% for VYM. Worst drawdown: TEQI -17.8% vs VYM -15.8%.

Should I hold both TEQI and VYM?

TEQI and VYM have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between TEQI and VYM?

57.7% of TEQI's money is in holdings VYM also owns. 38.5% of VYM's is in holdings TEQI also owns. They hold 71 positions in common, counted across the 111 positions we hold weights for in TEQI and 557 in VYM.

Which pays a higher dividend, TEQI or VYM?

TEQI yields 1.46% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than TEQI?

VYM has a lower expense ratio. TEQI led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.96. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 28.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.