SMN 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

MetricSMNVYMWinner
Expense Ratio0.95%0.04%
AUM$4M$79.0B
Dividend Yield3.60%2.86%
Holdings6568
YTD Return-25.04%+16.53%
1Y Return-29.91%+25.03%
3Y Return (annualized)-33.55%+18.54%
5Y Return (annualized)-26.94%+12.25%
Volatility (annualized)45.4%14.6%
Max Drawdown-100.0%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionJan 30, 2007Nov 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 -29.91% while VYM returned +25.03%. Year to date, SMN is down 25.04% versus a gain of 16.53% for VYM.

Over three years, SMN compounded at -33.55% per year against +18.54% for VYM; over five years the annualized figures are -26.94% and +12.25% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -32.25%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SMN has been the more volatile fund, with annualized monthly volatility of 45.4% 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 -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 3.60% against 2.86% 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 -29.91% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SMN annualized -32.25% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, SMN or VYM?

SMN has been the more volatile fund at 45.4% annualized versus 14.6% 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 3.60% while VYM yields 2.86%, so SMN currently pays the higher dividend yield.

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