EDC vs VYM
Direxion Daily MSCI Emerging Markets Bull 3X ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. EDC delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | EDC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.09% | 0.04% | |
| AUM | $168M | $81.6B | |
| Dividend Yield | 1.52% | 2.24% | |
| Holdings | 10 | 616 | |
| YTD Return | +34.11% | +16.42% | |
| 1Y Return | +87.47% | +24.22% | |
| 3Y Return (annualized) | +44.23% | +19.03% | |
| 5Y Return (annualized) | +0.46% | +12.21% | |
| Volatility (annualized) | 58.6% | 14.6% | |
| Max Drawdown | -92.9% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Nov 10, 2006 |
EDC vs VYM Performance
Direxion Daily MSCI Emerging Markets Bull 3X ETF (EDC) 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 EDC returned +87.47% while VYM returned +24.22%. Year to date, EDC is up 34.11% versus a gain of 16.42% for VYM.
Over three years, EDC compounded at +44.23% per year against +19.03% for VYM; over five years the annualized figures are +0.46% and +12.21% respectively. Across the full 18-year window we track, VYM has the edge at +7.10% annualized vs -0.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDC has been the more volatile fund, with annualized monthly volatility of 58.6% 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 -92.9% for EDC 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EDC charges 1.09% per year while VYM charges 0.04%. On a $10,000 position that is $109 vs $4 annually, a gap of $105 per year that compounds over a long holding period. On income, EDC currently yields 1.52% against 2.24% for VYM.
Holdings Overlap
EDC and VYM share 0 holdings out of 607 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, EDC or VYM?
EDC has an expense ratio of 1.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $105 per year of difference.
Which performed better, EDC or VYM?
Over the past year EDC returned +87.47% vs +24.22% for VYM, so EDC leads on 1-year performance. Over the longest common window we track (18 years), EDC annualized -0.60% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, EDC or VYM?
EDC has been the more volatile fund at 58.6% annualized versus 14.6% for VYM. Worst drawdown: EDC -92.9% vs VYM -58.8%.
Should I hold both EDC and VYM?
EDC and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDC and VYM?
EDC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 607 unique securities.
Which pays a higher dividend, EDC or VYM?
EDC yields 1.52% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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