SEF vs VYM
ProShares Short Financials 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 616 holdings.
Side-by-Side Comparison
| Metric | SEF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $13M | $81.6B | |
| Dividend Yield | 3.44% | 2.24% | |
| Holdings | 10 | 616 | |
| YTD Return | -3.80% | +14.84% | |
| 1Y Return | -4.42% | +20.88% | |
| 3Y Return (annualized) | -13.35% | +18.34% | |
| 5Y Return (annualized) | -7.37% | +12.04% | |
| Volatility (annualized) | 19.7% | 14.6% | |
| Max Drawdown | -96.7% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 10, 2008 | Nov 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 -4.42% while VYM returned +20.88%. Year to date, SEF is down 3.80% versus a gain of 14.84% for VYM.
Over three years, SEF compounded at -13.35% per year against +18.34% for VYM; over five years the annualized figures are -7.37% and +12.04% respectively. Across the full 18-year window we track, VYM has the edge at +7.01% annualized vs -14.45%. 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 3.44% against 2.24% for VYM.
Holdings Overlap
SEF 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, 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 -4.42% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), SEF annualized -14.45% vs +7.01% 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 604 unique securities.
Which pays a higher dividend, SEF or VYM?
SEF yields 3.44% while VYM yields 2.24%, so SEF currently pays the higher dividend yield.
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