VTEC vs VYM
VTEC vs VYM
Vanguard California Tax-Exempt Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VTEC offers more diversification with 702 holdings.
Side-by-Side Comparison
| Metric | VTEC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $2.8B | $79.0B | |
| Dividend Yield | 3.14% | 2.86% | |
| Holdings | 3,617 | 568 | |
| YTD Return | -1.15% | +15.80% | |
| 1Y Return | +2.99% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 3.9% | 14.6% | |
| Max Drawdown | -4.5% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 26, 2024 | Nov 10, 2006 |
VTEC vs VYM Performance
Vanguard California Tax-Exempt Bond ETF (VTEC) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTEC returned +2.99% while VYM returned +26.12%. Year to date, VTEC is down 1.15% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.9% for VTEC. 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 -4.5% for VTEC 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTEC charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, VTEC currently yields 3.14% against 2.86% for VYM.
Holdings Overlap
VTEC and VYM share 0 holdings out of 1260 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, VTEC or VYM?
VTEC has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VTEC or VYM?
Over the past year VTEC returned +2.99% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VTEC annualized +1.57% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VTEC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.9% for VTEC. Worst drawdown: VTEC -4.5% vs VYM -58.8%.
Should I hold both VTEC and VYM?
VTEC and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTEC and VYM?
VTEC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1260 unique securities.
Which pays a higher dividend, VTEC or VYM?
VTEC yields 3.14% while VYM yields 2.86%, so VTEC currently pays the higher dividend yield.
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