TYD 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

MetricTYDVYMWinner
Expense Ratio1.07%0.04%
AUM$32M$79.0B
Dividend Yield3.25%2.86%
Holdings8568
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 FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionApr 16, 2009Nov 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

0.0%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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