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 558 holdings.
Side-by-Side Comparison
| Metric | SDS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.91% | 0.04% | |
| AUM | $428M | $79.0B | |
| Dividend Yield | 5.33% | 2.86% | |
| Holdings | 20 | 568 | |
| YTD Return | -20.05% | +16.16% | |
| 1Y Return | -29.33% | +26.05% | |
| 3Y Return (annualized) | -28.49% | +18.43% | |
| 5Y Return (annualized) | -21.21% | +12.21% | |
| 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 -29.33% while VYM returned +26.05%. Year to date, SDS is down 20.05% versus a gain of 16.16% for VYM.
Over three years, SDS compounded at -28.49% per year against +18.43% for VYM; over five years the annualized figures are -21.21% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs -26.33%. 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 -0.89. 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 5.33% against 2.86% for VYM.
Holdings Overlap
SDS 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, 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 -29.33% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SDS annualized -26.33% vs +7.09% 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 -0.89, 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 559 unique securities.
Which pays a higher dividend, SDS or VYM?
SDS yields 5.33% while VYM yields 2.86%, so SDS currently pays the higher dividend yield.
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