MSFD vs VYM
Direxion Daily MSFT Bear 1X 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 616 holdings.
Side-by-Side Comparison
| Metric | MSFD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.04% | |
| AUM | $18M | $81.6B | |
| Dividend Yield | 4.03% | 2.24% | |
| Holdings | 6 | 616 | |
| YTD Return | -7.37% | +15.84% | |
| 1Y Return | +2.01% | +23.95% | |
| 3Y Return (annualized) | -13.58% | +19.02% | |
| 5Y Return (annualized) | - | +12.19% | |
| Volatility (annualized) | 26.0% | 14.6% | |
| Max Drawdown | -59.9% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 7, 2022 | Nov 10, 2006 |
MSFD vs VYM Performance
Direxion Daily MSFT Bear 1X ETF (MSFD) 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 MSFD returned +2.01% while VYM returned +23.95%. Year to date, MSFD is down 7.37% versus a gain of 15.84% for VYM.
Over three years, MSFD compounded at -13.58% per year against +19.02% for VYM. Across the full 4-year window we track, VYM has the edge at +7.07% annualized vs -16.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSFD has been the more volatile fund, with annualized monthly volatility of 26.0% 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 -59.9% for MSFD 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 -0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFD 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, MSFD currently yields 4.03% against 2.24% for VYM.
Holdings Overlap
MSFD and VYM share 0 holdings out of 606 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, MSFD or VYM?
MSFD 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, MSFD or VYM?
Over the past year MSFD returned +2.01% vs +23.95% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), MSFD annualized -16.00% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MSFD or VYM?
MSFD has been the more volatile fund at 26.0% annualized versus 14.6% for VYM. Worst drawdown: MSFD -59.9% vs VYM -58.8%.
Should I hold both MSFD and VYM?
MSFD and VYM have a monthly-return correlation of -0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFD and VYM?
MSFD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.
Which pays a higher dividend, MSFD or VYM?
MSFD yields 4.03% while VYM yields 2.24%, so MSFD currently pays the higher dividend yield.
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