PALU vs VTI

PALU vs VTI
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Quick Verdict

VTI has a lower expense ratio. PALU delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: PALUMore Diversified: VTI

Side-by-Side Comparison

MetricPALUVTIWinner
Expense Ratio1.08%0.03%
AUM$38M$666.9B
Dividend Yield4.08%1.07%
Holdings113,543
YTD Return+273.54%+14.82%
1Y Return+272.64%+22.43%
3Y Return (annualized)-+21.93%
5Y Return (annualized)-+12.34%
Volatility (annualized)134.1%15.4%
Max Drawdown-62.2%-56.6%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionMar 26, 2025May 24, 2001

PALU vs VTI Performance

Direxion Daily PANW Bull 2X ETF (PALU) is a ETF from Direxion Shares ETF Trust and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PALU returned +272.64% while VTI returned +22.43%. Year to date, PALU is up 273.54% versus a gain of 14.82% for VTI.

Risk: Volatility and Drawdowns

PALU has been the more volatile fund, with annualized monthly volatility of 134.1% compared with 15.4% for VTI. 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 -62.2% for PALU and -56.6% for VTI. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PALU charges 1.08% per year while VTI charges 0.03%. On a $10,000 position that is $108 vs $3 annually, a gap of $105 per year that compounds over a long holding period. On income, PALU currently yields 4.08% against 1.07% for VTI.

Holdings Overlap

0.4%overlap

PALU and VTI share 1 holdings out of 2791 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PALUWeight in VTIDifference
PANW23.80%0.38%23.42%

Frequently Asked Questions

Which is cheaper, PALU or VTI?

PALU has an expense ratio of 1.08% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $105 per year of difference.

Which performed better, PALU or VTI?

Over the past year PALU returned +272.64% vs +22.43% for VTI, so PALU leads on 1-year performance. Over the longest common window we track (1 years), PALU annualized +117.45% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, PALU or VTI?

PALU has been the more volatile fund at 134.1% annualized versus 15.4% for VTI. Worst drawdown: PALU -62.2% vs VTI -56.6%.

Should I hold both PALU and VTI?

PALU and VTI have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PALU and VTI?

PALU and VTI share 1 common holdings with a 0.4% weight overlap. Combined, they hold 2791 unique securities.

Which pays a higher dividend, PALU or VTI?

PALU yields 4.08% while VTI yields 1.07%, so PALU currently pays the higher dividend yield.

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