MFEM vs TYO
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Direxion Daily 7-10 Year Treasury Bear 3X ETF
Quick Verdict
MFEM has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | TYO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 1.00% | |
| AUM | $156M | $13M | |
| Dividend Yield | 2.39% | 2.48% | |
| Holdings | 701 | 6 | |
| YTD Return | +21.80% | +12.51% | |
| 1Y Return | +33.81% | +10.88% | |
| 3Y Return (annualized) | +20.43% | +3.99% | |
| 5Y Return (annualized) | +8.97% | +15.51% | |
| Volatility (annualized) | 17.7% | 19.3% | |
| Max Drawdown | -45.3% | -90.4% | |
| Fund Family | PIMCO (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Aug 31, 2017 | Apr 16, 2009 |
MFEM vs TYO Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Direxion Daily 7-10 Year Treasury Bear 3X ETF (TYO) is a ETF from Direxion Shares ETF Trust. Over the past year MFEM returned +33.81% while TYO returned +10.88%. Year to date, MFEM is up 21.80% versus a gain of 12.51% for TYO.
Over three years, MFEM compounded at +20.43% per year against +3.99% for TYO; over five years the annualized figures are +8.97% and +15.51% respectively. Across the full 9-year window we track, MFEM has the edge at +6.84% annualized vs -7.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TYO has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 17.7% for MFEM. 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 -45.3% for MFEM and -90.4% for TYO. 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 -0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFEM charges 0.49% per year while TYO charges 1.00%. On a $10,000 position that is $49 vs $100 annually, a gap of $51 per year that compounds over a long holding period. On income, MFEM currently yields 2.39% against 2.48% for TYO.
Holdings Overlap
MFEM and TYO share 0 holdings out of 506 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, MFEM or TYO?
MFEM has an expense ratio of 0.49% while TYO charges 1.00%. MFEM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, MFEM or TYO?
Over the past year MFEM returned +33.81% vs +10.88% for TYO, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.84% vs -7.16% for TYO. Past performance does not guarantee future results.
Which is riskier, MFEM or TYO?
TYO has been the more volatile fund at 19.3% annualized versus 17.7% for MFEM. Worst drawdown: MFEM -45.3% vs TYO -90.4%.
Should I hold both MFEM and TYO?
MFEM and TYO have a monthly-return correlation of -0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and TYO?
MFEM and TYO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, MFEM or TYO?
MFEM yields 2.39% while TYO yields 2.48%, so TYO currently pays the higher dividend yield.
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