SMN vs VYM
ProShares UltraShort Materials 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 | SMN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $4M | $81.6B | |
| Dividend Yield | 3.53% | 2.24% | |
| Holdings | 5 | 613 | |
| YTD Return | -25.13% | +15.29% | |
| 1Y Return | -27.44% | +22.23% | |
| 3Y Return (annualized) | -33.86% | +18.81% | |
| 5Y Return (annualized) | -27.49% | +12.14% | |
| Volatility (annualized) | 45.3% | 14.5% | |
| Max Drawdown | -100.0% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 30, 2007 | Nov 10, 2006 |
SMN vs VYM Performance
ProShares UltraShort Materials (SMN) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SMN returned -27.44% while VYM returned +22.23%. Year to date, SMN is down 25.13% versus a gain of 15.29% for VYM.
Over three years, SMN compounded at -33.86% per year against +18.81% for VYM; over five years the annualized figures are -27.49% and +12.14% respectively. Across the full 20-year window we track, VYM has the edge at +7.02% annualized vs -32.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMN has been the more volatile fund, with annualized monthly volatility of 45.3% compared with 14.5% 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 -100.0% for SMN 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 -0.74. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMN 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, SMN currently yields 3.53% against 2.24% for VYM.
Frequently Asked Questions
Which is cheaper, SMN or VYM?
SMN 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, SMN or VYM?
Over the past year SMN returned -27.44% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SMN annualized -32.18% vs +7.02% for VYM. Past performance does not guarantee future results.
Which is riskier, SMN or VYM?
SMN has been the more volatile fund at 45.3% annualized versus 14.5% for VYM. Worst drawdown: SMN -100.0% vs VYM -58.8%.
Should I hold both SMN and VYM?
SMN and VYM have a monthly-return correlation of -0.74, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SMN or VYM?
SMN yields 3.53% while VYM yields 2.24%, so SMN currently pays the higher dividend yield.
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