DRIP 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

MetricDRIPVYMWinner
Expense Ratio1.01%0.04%
AUM$115M$79.0B
Dividend Yield29.55%2.86%
Holdings8568
YTD Return-47.21%+15.80%
1Y Return-54.86%+26.12%
3Y Return (annualized)-21.76%+18.25%
5Y Return (annualized)-44.38%+12.51%
Volatility (annualized)91.6%14.6%
Max Drawdown-99.9%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionMay 28, 2015Nov 10, 2006

DRIP vs VYM Performance

Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF (DRIP) 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 DRIP returned -54.86% while VYM returned +26.12%. Year to date, DRIP is down 47.21% versus a gain of 15.80% for VYM.

Over three years, DRIP compounded at -21.76% per year against +18.25% for VYM; over five years the annualized figures are -44.38% and +12.51% respectively. Across the full 11-year window we track, VYM has the edge at +7.07% annualized vs -40.64%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DRIP has been the more volatile fund, with annualized monthly volatility of 91.6% 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 -99.9% for DRIP 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 -0.60. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DRIP charges 1.01% per year while VYM charges 0.04%. On a $10,000 position that is $101 vs $4 annually, a gap of $97 per year that compounds over a long holding period. On income, DRIP currently yields 29.55% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

DRIP and VYM share 0 holdings out of 561 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, DRIP or VYM?

DRIP has an expense ratio of 1.01% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $97 per year of difference.

Which performed better, DRIP or VYM?

Over the past year DRIP returned -54.86% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), DRIP annualized -40.64% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, DRIP or VYM?

DRIP has been the more volatile fund at 91.6% annualized versus 14.6% for VYM. Worst drawdown: DRIP -99.9% vs VYM -58.8%.

Should I hold both DRIP and VYM?

DRIP and VYM have a monthly-return correlation of -0.60, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DRIP and VYM?

DRIP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.

Which pays a higher dividend, DRIP or VYM?

DRIP yields 29.55% while VYM yields 2.86%, so DRIP currently pays the higher dividend yield.

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