MZZ vs VYM
ProShares UltraShort MidCap 400 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 | MZZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $2M | $79.0B | |
| Dividend Yield | 5.88% | 2.86% | |
| Holdings | 5 | 568 | |
| YTD Return | -26.13% | +16.53% | |
| 1Y Return | -32.71% | +25.03% | |
| 3Y Return (annualized) | -22.48% | +18.54% | |
| 5Y Return (annualized) | -17.32% | +12.25% | |
| Volatility (annualized) | 34.9% | 14.6% | |
| Max Drawdown | -99.9% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 11, 2006 | Nov 10, 2006 |
MZZ vs VYM Performance
ProShares UltraShort MidCap 400 (MZZ) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MZZ returned -32.71% while VYM returned +25.03%. Year to date, MZZ is down 26.13% versus a gain of 16.53% for VYM.
Over three years, MZZ compounded at -22.48% per year against +18.54% for VYM; over five years the annualized figures are -17.32% and +12.25% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -31.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MZZ has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -99.9% for MZZ 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 -0.85. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MZZ charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, MZZ currently yields 5.88% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, MZZ or VYM?
MZZ has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, MZZ or VYM?
Over the past year MZZ returned -32.71% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MZZ annualized -31.09% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, MZZ or VYM?
MZZ has been the more volatile fund at 34.9% annualized versus 14.6% for VYM. Worst drawdown: MZZ -99.9% vs VYM -58.8%.
Should I hold both MZZ and VYM?
MZZ and VYM have a monthly-return correlation of -0.85, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, MZZ or VYM?
MZZ yields 5.88% while VYM yields 2.86%, so MZZ currently pays the higher dividend yield.
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