SPDN vs VYM

SPDN vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricSPDNVYMWinner
Expense Ratio0.48%0.04%
AUM$233M$81.6B
Dividend Yield3.32%2.24%
Holdings5616
YTD Return-8.78%+14.84%
1Y Return-11.73%+20.88%
3Y Return (annualized)-12.52%+18.34%
5Y Return (annualized)-7.97%+12.04%
Volatility (annualized)14.6%14.6%
Max Drawdown-76.8%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionJun 8, 2016Nov 10, 2006

SPDN vs VYM Performance

Direxion Daily S&P 500 Bear 1X ETF (SPDN) is a ETF from Direxion Shares ETF Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SPDN returned -11.73% while VYM returned +20.88%. Year to date, SPDN is down 8.78% versus a gain of 14.84% for VYM.

Over three years, SPDN compounded at -12.52% per year against +18.34% for VYM; over five years the annualized figures are -7.97% and +12.04% respectively. Across the full 10-year window we track, VYM has the edge at +7.01% annualized vs -12.76%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.6% for SPDN. 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 -76.8% for SPDN 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 -0.86. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPDN charges 0.48% per year while VYM charges 0.04%. On a $10,000 position that is $48 vs $4 annually, a gap of $44 per year that compounds over a long holding period. On income, SPDN currently yields 3.32% against 2.24% for VYM.

Holdings Overlap

0.0%overlap

SPDN and VYM share 0 holdings out of 606 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, SPDN or VYM?

SPDN has an expense ratio of 0.48% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, SPDN or VYM?

Over the past year SPDN returned -11.73% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), SPDN annualized -12.76% vs +7.01% for VYM. Past performance does not guarantee future results.

Which is riskier, SPDN or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 14.6% for SPDN. Worst drawdown: SPDN -76.8% vs VYM -58.8%.

Should I hold both SPDN and VYM?

SPDN and VYM have a monthly-return correlation of -0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPDN and VYM?

SPDN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.

Which pays a higher dividend, SPDN or VYM?

SPDN yields 3.32% while VYM yields 2.24%, so SPDN currently pays the higher dividend yield.

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