EUO 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

MetricEUOVYMWinner
Expense Ratio0.98%0.04%
AUM$36M$79.0B
Dividend Yield0.00%2.86%
Holdings4568
YTD Return+6.36%+16.53%
1Y Return+7.96%+25.03%
3Y Return (annualized)+1.13%+18.54%
5Y Return (annualized)+4.53%+12.25%
Volatility (annualized)17.9%14.6%
Max Drawdown-38.6%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionNov 24, 2008Nov 10, 2006

EUO vs VYM Performance

ProShares UltraShort Euro (EUO) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EUO returned +7.96% while VYM returned +25.03%. Year to date, EUO is up 6.36% versus a gain of 16.53% for VYM.

Over three years, EUO compounded at +1.13% per year against +18.54% for VYM; over five years the annualized figures are +4.53% and +12.25% respectively. Across the full 18-year window we track, VYM has the edge at +7.10% annualized vs +1.15%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EUO has been the more volatile fund, with annualized monthly volatility of 17.9% 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 -38.6% for EUO 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 -0.40. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EUO charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, EUO currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

EUO and VYM share 0 holdings out of 559 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, EUO or VYM?

EUO has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $94 per year of difference.

Which performed better, EUO or VYM?

Over the past year EUO returned +7.96% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), EUO annualized +1.15% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, EUO or VYM?

EUO has been the more volatile fund at 17.9% annualized versus 14.6% for VYM. Worst drawdown: EUO -38.6% vs VYM -58.8%.

Should I hold both EUO and VYM?

EUO and VYM have a monthly-return correlation of -0.40, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EUO and VYM?

EUO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, EUO or VYM?

EUO yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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