PSQ 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

MetricPSQVYMWinner
Expense Ratio0.95%0.04%
AUM$799M$79.0B
Dividend Yield4.56%2.86%
Holdings17568
YTD Return-14.60%+16.53%
1Y Return-17.83%+25.03%
3Y Return (annualized)-17.98%+18.54%
5Y Return (annualized)-12.80%+12.25%
Volatility (annualized)17.8%14.6%
Max Drawdown-98.4%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionJun 19, 2006Nov 10, 2006

PSQ vs VYM Performance

ProShares Short QQQ (PSQ) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSQ returned -17.83% while VYM returned +25.03%. Year to date, PSQ is down 14.60% versus a gain of 16.53% for VYM.

Over three years, PSQ compounded at -17.98% per year against +18.54% for VYM; over five years the annualized figures are -12.80% and +12.25% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -17.28%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PSQ has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -98.4% for PSQ 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 -0.70. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PSQ 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, PSQ currently yields 4.56% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

PSQ and VYM share 0 holdings out of 559 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, PSQ or VYM?

PSQ 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, PSQ or VYM?

Over the past year PSQ returned -17.83% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PSQ annualized -17.28% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, PSQ or VYM?

PSQ has been the more volatile fund at 17.8% annualized versus 14.6% for VYM. Worst drawdown: PSQ -98.4% vs VYM -58.8%.

Should I hold both PSQ and VYM?

PSQ and VYM have a monthly-return correlation of -0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSQ and VYM?

PSQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, PSQ or VYM?

PSQ yields 4.56% while VYM yields 2.86%, so PSQ currently pays the higher dividend yield.

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