SDD vs VYM
ProShares UltraShort SmallCap600 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 | SDD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $1M | $79.0B | |
| Dividend Yield | 6.58% | 2.86% | |
| Holdings | 4 | 568 | |
| YTD Return | -33.91% | +15.80% | |
| 1Y Return | -45.94% | +26.12% | |
| 3Y Return (annualized) | -24.92% | +18.25% | |
| 5Y Return (annualized) | -18.29% | +12.51% | |
| Volatility (annualized) | 38.8% | 14.6% | |
| Max Drawdown | -100.0% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 23, 2007 | Nov 10, 2006 |
SDD vs VYM Performance
ProShares UltraShort SmallCap600 (SDD) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SDD returned -45.94% while VYM returned +26.12%. Year to date, SDD is down 33.91% versus a gain of 15.80% for VYM.
Over three years, SDD compounded at -24.92% per year against +18.25% for VYM; over five years the annualized figures are -18.29% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -29.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SDD has been the more volatile fund, with annualized monthly volatility of 38.8% 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 -100.0% for SDD 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 -0.83. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SDD 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, SDD currently yields 6.58% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, SDD or VYM?
SDD 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, SDD or VYM?
Over the past year SDD returned -45.94% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SDD annualized -29.78% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, SDD or VYM?
SDD has been the more volatile fund at 38.8% annualized versus 14.6% for VYM. Worst drawdown: SDD -100.0% vs VYM -58.8%.
Should I hold both SDD and VYM?
SDD and VYM have a monthly-return correlation of -0.83, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SDD or VYM?
SDD yields 6.58% while VYM yields 2.86%, so SDD currently pays the higher dividend yield.
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