PALU vs VYM
Direxion Daily PANW Bull 2X ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PALU delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PALU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.08% | 0.04% | |
| AUM | $25M | $79.0B | |
| Dividend Yield | 3.75% | 2.86% | |
| Holdings | 9 | 568 | |
| YTD Return | +296.91% | +16.53% | |
| 1Y Return | +280.36% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 135.3% | 14.6% | |
| Max Drawdown | -62.2% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 26, 2025 | Nov 10, 2006 |
PALU vs VYM Performance
Direxion Daily PANW Bull 2X ETF (PALU) 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 PALU returned +280.36% while VYM returned +25.03%. Year to date, PALU is up 296.91% versus a gain of 16.53% for VYM.
Risk: Volatility and Drawdowns
PALU has been the more volatile fund, with annualized monthly volatility of 135.3% 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 -62.2% for PALU 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 -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PALU charges 1.08% per year while VYM charges 0.04%. On a $10,000 position that is $108 vs $4 annually, a gap of $104 per year that compounds over a long holding period. On income, PALU currently yields 3.75% against 2.86% for VYM.
Holdings Overlap
PALU 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, PALU or VYM?
PALU has an expense ratio of 1.08% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $104 per year of difference.
Which performed better, PALU or VYM?
Over the past year PALU returned +280.36% vs +25.03% for VYM, so PALU leads on 1-year performance. Over the longest common window we track (1 years), PALU annualized +127.56% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PALU or VYM?
PALU has been the more volatile fund at 135.3% annualized versus 14.6% for VYM. Worst drawdown: PALU -62.2% vs VYM -58.8%.
Should I hold both PALU and VYM?
PALU and VYM have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALU and VYM?
PALU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 563 unique securities.
Which pays a higher dividend, PALU or VYM?
PALU yields 3.75% while VYM yields 2.86%, so PALU currently pays the higher dividend yield.
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