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

MetricEFUVYMWinner
Expense Ratio0.95%0.04%
AUM$1M$79.0B
Dividend Yield5.01%2.86%
Holdings5568
YTD Return-23.39%+15.80%
1Y Return-34.97%+26.12%
3Y Return (annualized)-26.65%+18.25%
5Y Return (annualized)-17.35%+12.51%
Volatility (annualized)33.3%14.6%
Max Drawdown-99.5%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionOct 23, 2007Nov 10, 2006

EFU vs VYM Performance

ProShares UltraShort MSCI EAFE (EFU) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EFU returned -34.97% while VYM returned +26.12%. Year to date, EFU is down 23.39% versus a gain of 15.80% for VYM.

Over three years, EFU compounded at -26.65% per year against +18.25% for VYM; over five years the annualized figures are -17.35% and +12.51% respectively. Across the full 19-year window we track, VYM has the edge at +7.07% annualized vs -20.45%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EFU has been the more volatile fund, with annualized monthly volatility of 33.3% 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 -99.5% for EFU 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 -0.80. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EFU charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, EFU currently yields 5.01% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, EFU or VYM?

EFU has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, EFU or VYM?

Over the past year EFU returned -34.97% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), EFU annualized -20.45% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, EFU or VYM?

EFU has been the more volatile fund at 33.3% annualized versus 14.6% for VYM. Worst drawdown: EFU -99.5% vs VYM -58.8%.

Should I hold both EFU and VYM?

EFU and VYM have a monthly-return correlation of -0.80, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, EFU or VYM?

EFU yields 5.01% while VYM yields 2.86%, so EFU currently pays the higher dividend yield.

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