UYG vs VYM
UYG vs VYM
ProShares Ultra Financials 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 | UYG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.94% | 0.04% | |
| AUM | $827M | $79.0B | |
| Dividend Yield | 12.47% | 2.86% | |
| Holdings | 89 | 568 | |
| 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 Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 30, 2007 | Nov 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
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
| Stock | Weight in UYG | Weight in VYM | Difference |
|---|---|---|---|
| JPM | 6.82% | 3.36% | 3.46% |
| BAC | 2.95% | 1.39% | 1.56% |
| GS | 2.35% | 1.05% | 1.30% |
| WFC | Pro | Pro | Pro |
| MS | Pro | Pro | Pro |
| C | Pro | Pro | Pro |
| BLK | Pro | Pro | Pro |
| PGR | Pro | Pro | Pro |
| CB | Pro | Pro | Pro |
| PNC | Pro | Pro | Pro |
See all 10 holdings UYG shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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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