DRIP vs VYM
DRIP vs VYM
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X 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 | DRIP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.04% | |
| AUM | $115M | $79.0B | |
| Dividend Yield | 29.55% | 2.86% | |
| Holdings | 8 | 568 | |
| 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 Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | May 28, 2015 | Nov 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
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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