OOTO vs VYM

Quick Verdict

VYM has a lower expense ratio. OOTO delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: OOTOMore Diversified: VYM

Side-by-Side Comparison

MetricOOTOVYMWinner
Expense Ratio1.07%0.04%
AUM$6M$79.0B
Dividend Yield1.27%2.86%
Holdings54568
YTD Return+1.71%+16.16%
1Y Return+42.54%+26.05%
3Y Return (annualized)+22.56%+18.43%
5Y Return (annualized)-+12.21%
Volatility (annualized)51.9%14.6%
Max Drawdown-66.9%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionJun 10, 2021Nov 10, 2006

OOTO vs VYM Performance

Direxion Daily Travel & Vacation Bull 2X (OOTO) 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 OOTO returned +42.54% while VYM returned +26.05%. Year to date, OOTO is up 1.71% versus a gain of 16.16% for VYM.

Over three years, OOTO compounded at +22.56% per year against +18.43% for VYM. Across the full 4-year window we track, VYM has the edge at +7.09% annualized vs -6.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

OOTO has been the more volatile fund, with annualized monthly volatility of 51.9% 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 -66.9% for OOTO 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

OOTO charges 1.07% per year while VYM charges 0.04%. On a $10,000 position that is $107 vs $4 annually, a gap of $103 per year that compounds over a long holding period. On income, OOTO currently yields 1.27% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, OOTO or VYM?

OOTO has an expense ratio of 1.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $103 per year of difference.

Which performed better, OOTO or VYM?

Over the past year OOTO returned +42.54% vs +26.05% for VYM, so OOTO leads on 1-year performance. Over the longest common window we track (4 years), OOTO annualized -6.08% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, OOTO or VYM?

OOTO has been the more volatile fund at 51.9% annualized versus 14.6% for VYM. Worst drawdown: OOTO -66.9% vs VYM -58.8%.

Should I hold both OOTO and VYM?

OOTO and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, OOTO or VYM?

OOTO yields 1.27% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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