DRN 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

MetricDRNVYMWinner
Expense Ratio0.96%0.04%
AUM$49M$79.0B
Dividend Yield1.97%2.86%
Holdings36568
YTD Return+23.33%+16.16%
1Y Return+17.03%+26.05%
3Y Return (annualized)+7.38%+18.43%
5Y Return (annualized)-12.91%+12.21%
Volatility (annualized)53.4%14.6%
Max Drawdown-86.3%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionJul 16, 2009Nov 10, 2006

DRN vs VYM Performance

Direxion Daily Real Estate Bull 3X ETF (DRN) 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 DRN returned +17.03% while VYM returned +26.05%. Year to date, DRN is up 23.33% versus a gain of 16.16% for VYM.

Over three years, DRN compounded at +7.38% per year against +18.43% for VYM; over five years the annualized figures are -12.91% and +12.21% respectively. Across the full 17-year window we track, DRN has the edge at +11.38% annualized vs +7.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DRN has been the more volatile fund, with annualized monthly volatility of 53.4% 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 -86.3% for DRN 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DRN charges 0.96% per year while VYM charges 0.04%. On a $10,000 position that is $96 vs $4 annually, a gap of $92 per year that compounds over a long holding period. On income, DRN currently yields 1.97% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

DRN and VYM share 0 holdings out of 591 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, DRN or VYM?

DRN has an expense ratio of 0.96% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, DRN or VYM?

Over the past year DRN returned +17.03% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), DRN annualized +11.38% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, DRN or VYM?

DRN has been the more volatile fund at 53.4% annualized versus 14.6% for VYM. Worst drawdown: DRN -86.3% vs VYM -58.8%.

Should I hold both DRN and VYM?

DRN and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DRN and VYM?

DRN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 591 unique securities.

Which pays a higher dividend, DRN or VYM?

DRN yields 1.97% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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