SEF 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

MetricSEFVYMWinner
Expense Ratio0.95%0.04%
AUM$13M$79.0B
Dividend Yield3.25%2.86%
Holdings10568
YTD Return-3.17%+15.80%
1Y Return-8.02%+26.12%
3Y Return (annualized)-12.52%+18.25%
5Y Return (annualized)-7.44%+12.51%
Volatility (annualized)19.7%14.6%
Max Drawdown-96.7%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionJun 10, 2008Nov 10, 2006

SEF vs VYM Performance

ProShares Short Financials (SEF) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SEF returned -8.02% while VYM returned +26.12%. Year to date, SEF is down 3.17% versus a gain of 15.80% for VYM.

Over three years, SEF compounded at -12.52% per year against +18.25% for VYM; over five years the annualized figures are -7.44% and +12.51% respectively. Across the full 18-year window we track, VYM has the edge at +7.07% annualized vs -14.46%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SEF has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -96.7% for SEF 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 -0.87. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SEF 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, SEF currently yields 3.25% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

SEF 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, SEF or VYM?

SEF 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, SEF or VYM?

Over the past year SEF returned -8.02% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), SEF annualized -14.46% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, SEF or VYM?

SEF has been the more volatile fund at 19.7% annualized versus 14.6% for VYM. Worst drawdown: SEF -96.7% vs VYM -58.8%.

Should I hold both SEF and VYM?

SEF and VYM have a monthly-return correlation of -0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SEF and VYM?

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

Which pays a higher dividend, SEF or VYM?

SEF yields 3.25% while VYM yields 2.86%, so SEF currently pays the higher dividend yield.

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