ERX vs VYM
Direxion Daily Energy Bull 2X ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. ERX delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | ERX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.91% | 0.04% | |
| AUM | $229M | $79.0B | |
| Dividend Yield | 1.85% | 2.86% | |
| Holdings | 29 | 568 | |
| YTD Return | +71.52% | +16.53% | |
| 1Y Return | +99.18% | +25.03% | |
| 3Y Return (annualized) | +17.10% | +18.54% | |
| 5Y Return (annualized) | +36.13% | +12.25% | |
| Volatility (annualized) | 65.6% | 14.6% | |
| Max Drawdown | -99.6% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | Nov 10, 2006 |
ERX vs VYM Performance
Direxion Daily Energy Bull 2X ETF (ERX) 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 ERX returned +99.18% while VYM returned +25.03%. Year to date, ERX is up 71.52% versus a gain of 16.53% for VYM.
Over three years, ERX compounded at +17.10% per year against +18.54% for VYM; over five years the annualized figures are +36.13% and +12.25% respectively. Across the full 18-year window we track, VYM has the edge at +7.10% annualized vs -7.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ERX has been the more volatile fund, with annualized monthly volatility of 65.6% 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 -99.6% for ERX 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ERX charges 0.91% per year while VYM charges 0.04%. On a $10,000 position that is $91 vs $4 annually, a gap of $87 per year that compounds over a long holding period. On income, ERX currently yields 1.85% against 2.86% for VYM.
Holdings Overlap
ERX and VYM share 20 holdings out of 562 unique holdings combined, representing a 8.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ERX or VYM?
ERX has an expense ratio of 0.91% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, ERX or VYM?
Over the past year ERX returned +99.18% vs +25.03% for VYM, so ERX leads on 1-year performance. Over the longest common window we track (18 years), ERX annualized -7.73% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, ERX or VYM?
ERX has been the more volatile fund at 65.6% annualized versus 14.6% for VYM. Worst drawdown: ERX -99.6% vs VYM -58.8%.
Should I hold both ERX and VYM?
ERX and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ERX and VYM?
ERX and VYM share 20 common holdings with a 8.7% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, ERX or VYM?
ERX yields 1.85% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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