METD 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

MetricMETDVYMWinner
Expense Ratio1.02%0.04%
AUM$9M$79.0B
Dividend Yield2.48%2.86%
Holdings38568
YTD Return+0.55%+16.16%
1Y Return+17.75%+26.05%
3Y Return (annualized)-+18.43%
5Y Return (annualized)-+12.21%
Volatility (annualized)29.9%14.6%
Max Drawdown-46.0%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionJun 5, 2024Nov 10, 2006

METD vs VYM Performance

Direxion Daily META Bear 1X ETF (METD) 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 METD returned +17.75% while VYM returned +26.05%. Year to date, METD is up 0.55% versus a gain of 16.16% for VYM.

Risk: Volatility and Drawdowns

METD has been the more volatile fund, with annualized monthly volatility of 29.9% 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 -46.0% for METD 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 -0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

METD charges 1.02% per year while VYM charges 0.04%. On a $10,000 position that is $102 vs $4 annually, a gap of $98 per year that compounds over a long holding period. On income, METD currently yields 2.48% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

METD 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, METD or VYM?

METD has an expense ratio of 1.02% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $98 per year of difference.

Which performed better, METD or VYM?

Over the past year METD returned +17.75% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), METD annualized -14.51% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, METD or VYM?

METD has been the more volatile fund at 29.9% annualized versus 14.6% for VYM. Worst drawdown: METD -46.0% vs VYM -58.8%.

Should I hold both METD and VYM?

METD and VYM have a monthly-return correlation of -0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between METD and VYM?

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

Which pays a higher dividend, METD or VYM?

METD yields 2.48% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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