UYG 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

MetricUYGVYMWinner
Expense Ratio0.94%0.04%
AUM$827M$79.0B
Dividend Yield12.47%2.86%
Holdings89568
YTD Return+5.79%+13.82%
1Y Return+16.59%+24.08%
3Y Return (annualized)+31.20%+17.72%
5Y Return (annualized)+13.99%+12.13%
Volatility (annualized)41.2%14.6%
Max Drawdown-98.0%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionJan 30, 2007Nov 10, 2006

UYG vs VYM Performance

ProShares Ultra Financials (UYG) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UYG returned +16.59% while VYM returned +24.08%. Year to date, UYG is up 5.79% versus a gain of 13.82% for VYM.

Over three years, UYG compounded at +31.20% per year against +17.72% for VYM; over five years the annualized figures are +13.99% and +12.13% respectively. Across the full 20-year window we track, VYM has the edge at +6.98% annualized vs +0.14%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

UYG has been the more volatile fund, with annualized monthly volatility of 41.2% 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 -98.0% for UYG 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

UYG charges 0.94% per year while VYM charges 0.04%. On a $10,000 position that is $94 vs $4 annually, a gap of $90 per year that compounds over a long holding period. On income, UYG currently yields 12.47% against 2.86% for VYM.

Holdings Overlap

16.1%overlap

UYG and VYM share 42 holdings out of 593 unique holdings combined, representing a 16.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in UYGWeight in VYMDifference
JPM6.82%3.36%3.46%
BAC2.95%1.39%1.56%
GS2.35%1.05%1.30%
WFCProProPro
MSProProPro
CProProPro
BLKProProPro
PGRProProPro
CBProProPro
PNCProProPro
See all 10 holdings UYG shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, UYG or VYM?

UYG has an expense ratio of 0.94% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $90 per year of difference.

Which performed better, UYG or VYM?

Over the past year UYG returned +16.59% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), UYG annualized +0.14% vs +6.98% for VYM. Past performance does not guarantee future results.

Which is riskier, UYG or VYM?

UYG has been the more volatile fund at 41.2% annualized versus 14.6% for VYM. Worst drawdown: UYG -98.0% vs VYM -58.8%.

Should I hold both UYG and VYM?

UYG and VYM have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between UYG and VYM?

UYG and VYM share 42 common holdings with a 16.1% weight overlap. Combined, they hold 593 unique securities.

Which pays a higher dividend, UYG or VYM?

UYG yields 12.47% while VYM yields 2.86%, so UYG currently pays the higher dividend yield.

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