LABD 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

MetricLABDVYMWinner
Expense Ratio1.07%0.04%
AUM$65M$79.0B
Dividend Yield5.44%2.86%
Holdings10568
YTD Return-64.01%+15.80%
1Y Return-88.46%+26.12%
3Y Return (annualized)-63.06%+18.25%
5Y Return (annualized)-47.88%+12.51%
Volatility (annualized)87.2%14.6%
Max Drawdown-100.0%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionMay 28, 2015Nov 10, 2006

LABD vs VYM Performance

Direxion Daily S&P Biotech Bear 3X ETF (LABD) 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 LABD returned -88.46% while VYM returned +26.12%. Year to date, LABD is down 64.01% versus a gain of 15.80% for VYM.

Over three years, LABD compounded at -63.06% per year against +18.25% for VYM; over five years the annualized figures are -47.88% and +12.51% respectively. Across the full 11-year window we track, VYM has the edge at +7.07% annualized vs -55.91%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LABD has been the more volatile fund, with annualized monthly volatility of 87.2% 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 -100.0% for LABD 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 -0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LABD charges 1.07% per year while VYM charges 0.04%. On a $10,000 position that is $107 vs $4 annually, a gap of $103 per year that compounds over a long holding period. On income, LABD currently yields 5.44% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

LABD and VYM share 0 holdings out of 562 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, LABD or VYM?

LABD has an expense ratio of 1.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $103 per year of difference.

Which performed better, LABD or VYM?

Over the past year LABD returned -88.46% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), LABD annualized -55.91% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, LABD or VYM?

LABD has been the more volatile fund at 87.2% annualized versus 14.6% for VYM. Worst drawdown: LABD -100.0% vs VYM -58.8%.

Should I hold both LABD and VYM?

LABD and VYM have a monthly-return correlation of -0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LABD and VYM?

LABD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.

Which pays a higher dividend, LABD or VYM?

LABD yields 5.44% while VYM yields 2.86%, so LABD currently pays the higher dividend yield.

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