SDP vs VYM

SDP vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricSDPVYMWinner
Expense Ratio0.95%0.04%
AUM$4M$81.6B
Dividend Yield4.07%2.24%
Holdings5616
YTD Return+0.70%+14.84%
1Y Return-3.27%+20.88%
3Y Return (annualized)-19.86%+18.34%
5Y Return (annualized)-13.99%+12.04%
Volatility (annualized)30.5%14.6%
Max Drawdown-99.8%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionJan 30, 2007Nov 10, 2006

SDP vs VYM Performance

ProShares UltraShort Utilities (SDP) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SDP returned -3.27% while VYM returned +20.88%. Year to date, SDP is up 0.70% versus a gain of 14.84% for VYM.

Over three years, SDP compounded at -19.86% per year against +18.34% for VYM; over five years the annualized figures are -13.99% and +12.04% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs -24.51%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SDP has been the more volatile fund, with annualized monthly volatility of 30.5% 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 -99.8% for SDP 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 -0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SDP 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, SDP currently yields 4.07% against 2.24% for VYM.

Frequently Asked Questions

Which is cheaper, SDP or VYM?

SDP 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, SDP or VYM?

Over the past year SDP returned -3.27% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SDP annualized -24.51% vs +7.01% for VYM. Past performance does not guarantee future results.

Which is riskier, SDP or VYM?

SDP has been the more volatile fund at 30.5% annualized versus 14.6% for VYM. Worst drawdown: SDP -99.8% vs VYM -58.8%.

Should I hold both SDP and VYM?

SDP and VYM have a monthly-return correlation of -0.47, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SDP or VYM?

SDP yields 4.07% while VYM yields 2.24%, so SDP currently pays the higher dividend yield.

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