SDS vs VYM
ProShares UltraShort S&P500 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 613 holdings.
Side-by-Side Comparison
| Metric | SDS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.91% | 0.04% | |
| AUM | $385M | $81.6B | |
| Dividend Yield | 5.29% | 2.24% | |
| Holdings | 20 | 613 | |
| YTD Return | -18.92% | +14.57% | |
| 1Y Return | -27.74% | +21.08% | |
| 3Y Return (annualized) | -27.92% | +18.16% | |
| 5Y Return (annualized) | -20.41% | +12.00% | |
| Volatility (annualized) | 28.3% | 14.6% | |
| Max Drawdown | -99.9% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 11, 2006 | Nov 10, 2006 |
SDS vs VYM Performance
ProShares UltraShort S&P500 (SDS) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SDS returned -27.74% while VYM returned +21.08%. Year to date, SDS is down 18.92% versus a gain of 14.57% for VYM.
Over three years, SDS compounded at -27.92% per year against +18.16% for VYM; over five years the annualized figures are -20.41% and +12.00% respectively. Across the full 20-year window we track, VYM has the edge at +6.99% annualized vs -26.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SDS has been the more volatile fund, with annualized monthly volatility of 28.3% 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 -99.9% for SDS 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 -0.88. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SDS charges 0.91% per year while VYM charges 0.04%. On a $10,000 position that is $91 vs $4 annually, a gap of $87 per year that compounds over a long holding period. On income, SDS currently yields 5.29% against 2.24% for VYM.
Holdings Overlap
SDS and VYM share 0 holdings out of 604 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, SDS or VYM?
SDS has an expense ratio of 0.91% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, SDS or VYM?
Over the past year SDS returned -27.74% vs +21.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SDS annualized -26.22% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, SDS or VYM?
SDS has been the more volatile fund at 28.3% annualized versus 14.6% for VYM. Worst drawdown: SDS -99.9% vs VYM -58.8%.
Should I hold both SDS and VYM?
SDS and VYM have a monthly-return correlation of -0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SDS and VYM?
SDS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, SDS or VYM?
SDS yields 5.29% while VYM yields 2.24%, so SDS currently pays the higher dividend yield.
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