TYD vs VYM
TYD vs VYM
Direxion Daily 7-10 Year Treasury Bull 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 558 holdings.
Side-by-Side Comparison
| Metric | TYD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.04% | |
| AUM | $32M | $79.0B | |
| Dividend Yield | 3.25% | 2.86% | |
| Holdings | 8 | 568 | |
| YTD Return | -8.94% | +15.20% | |
| 1Y Return | -7.75% | +25.56% | |
| 3Y Return (annualized) | -3.66% | +17.86% | |
| 5Y Return (annualized) | -14.64% | +12.35% | |
| Volatility (annualized) | 20.0% | 14.6% | |
| Max Drawdown | -67.5% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 16, 2009 | Nov 10, 2006 |
TYD vs VYM Performance
Direxion Daily 7-10 Year Treasury Bull 3X ETF (TYD) 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 TYD returned -7.75% while VYM returned +25.56%. Year to date, TYD is down 8.94% versus a gain of 15.20% for VYM.
Over three years, TYD compounded at -3.66% per year against +17.86% for VYM; over five years the annualized figures are -14.64% and +12.35% respectively. Across the full 17-year window we track, VYM has the edge at +7.05% annualized vs -0.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TYD has been the more volatile fund, with annualized monthly volatility of 20.0% 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 -67.5% for TYD 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 -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TYD charges 1.07% per year while VYM charges 0.04%. On a $10,000 position that is $107 vs $4 annually, a gap of $103 per year that compounds over a long holding period. On income, TYD currently yields 3.25% against 2.86% for VYM.
Holdings Overlap
TYD 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, TYD or VYM?
TYD has an expense ratio of 1.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, TYD or VYM?
Over the past year TYD returned -7.75% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), TYD annualized -0.98% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, TYD or VYM?
TYD has been the more volatile fund at 20.0% annualized versus 14.6% for VYM. Worst drawdown: TYD -67.5% vs VYM -58.8%.
Should I hold both TYD and VYM?
TYD and VYM have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TYD and VYM?
TYD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, TYD or VYM?
TYD yields 3.25% while VYM yields 2.86%, so TYD currently pays the higher dividend yield.
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