MRGR vs VYM
ProShares Merger ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MRGR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $16M | $79.0B | |
| Dividend Yield | 1.26% | 2.86% | |
| Holdings | 50 | 568 | |
| YTD Return | +2.13% | +16.53% | |
| 1Y Return | +7.78% | +25.03% | |
| 3Y Return (annualized) | +7.39% | +18.54% | |
| 5Y Return (annualized) | +3.72% | +12.25% | |
| Volatility (annualized) | 8.3% | 14.6% | |
| Max Drawdown | -22.5% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 11, 2012 | Nov 10, 2006 |
MRGR vs VYM Performance
ProShares Merger ETF (MRGR) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MRGR returned +7.78% while VYM returned +25.03%. Year to date, MRGR is up 2.13% versus a gain of 16.53% for VYM.
Over three years, MRGR compounded at +7.39% per year against +18.54% for VYM; over five years the annualized figures are +3.72% and +12.25% respectively. Across the full 14-year window we track, VYM has the edge at +7.10% annualized vs +2.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.3% for MRGR. 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 -22.5% for MRGR 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MRGR charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, MRGR currently yields 1.26% against 2.86% for VYM.
Holdings Overlap
MRGR and VYM share 8 holdings out of 590 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MRGR or VYM?
MRGR has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, MRGR or VYM?
Over the past year MRGR returned +7.78% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), MRGR annualized +2.00% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, MRGR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.3% for MRGR. Worst drawdown: MRGR -22.5% vs VYM -58.8%.
Should I hold both MRGR and VYM?
MRGR and VYM have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MRGR and VYM?
MRGR and VYM share 8 common holdings with a 0.8% weight overlap. Combined, they hold 590 unique securities.
Which pays a higher dividend, MRGR or VYM?
MRGR yields 1.26% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.