MSFU 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

MetricMSFUVYMWinner
Expense Ratio0.98%0.04%
AUM$773M$79.0B
Dividend Yield13.70%2.86%
Holdings9568
YTD Return+0.07%+16.10%
1Y Return-21.93%+25.99%
3Y Return (annualized)+13.55%+18.29%
5Y Return (annualized)-+12.35%
Volatility (annualized)51.7%14.6%
Max Drawdown-62.4%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionSep 7, 2022Nov 10, 2006

MSFU vs VYM Performance

Direxion Daily MSFT Bull 2X ETF (MSFU) 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 MSFU returned -21.93% while VYM returned +25.99%. Year to date, MSFU is up 0.07% versus a gain of 16.10% for VYM.

Over three years, MSFU compounded at +13.55% per year against +18.29% for VYM. Across the full 4-year window we track, MSFU has the edge at +17.38% annualized vs +7.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MSFU has been the more volatile fund, with annualized monthly volatility of 51.7% 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 -62.4% for MSFU 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSFU charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, MSFU currently yields 13.70% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

MSFU and VYM share 0 holdings out of 563 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, MSFU or VYM?

MSFU has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $94 per year of difference.

Which performed better, MSFU or VYM?

Over the past year MSFU returned -21.93% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), MSFU annualized +17.38% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, MSFU or VYM?

MSFU has been the more volatile fund at 51.7% annualized versus 14.6% for VYM. Worst drawdown: MSFU -62.4% vs VYM -58.8%.

Should I hold both MSFU and VYM?

MSFU and VYM 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 MSFU and VYM?

MSFU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 563 unique securities.

Which pays a higher dividend, MSFU or VYM?

MSFU yields 13.70% while VYM yields 2.86%, so MSFU currently pays the higher dividend yield.

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