TMF vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricTMFVTIWinner
Expense Ratio0.90%0.03%
AUM$2.3B$663.5B
Dividend Yield4.08%1.07%
Holdings143,543
YTD Return-16.04%+14.16%
1Y Return-16.79%+23.62%
3Y Return (annualized)-18.37%+21.43%
5Y Return (annualized)-34.13%+12.33%
Volatility (annualized)40.7%15.3%
Max Drawdown-93.3%-56.6%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionApr 16, 2009May 24, 2001

TMF vs VTI Performance

Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) is a ETF from Direxion Shares ETF Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TMF returned -16.79% while VTI returned +23.62%. Year to date, TMF is down 16.04% versus a gain of 14.16% for VTI.

Over three years, TMF compounded at -18.37% per year against +21.43% for VTI; over five years the annualized figures are -34.13% and +12.33% respectively. Across the full 17-year window we track, VTI has the edge at +8.14% annualized vs -7.98%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TMF has been the more volatile fund, with annualized monthly volatility of 40.7% compared with 15.3% for VTI. 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 -93.3% for TMF and -56.6% for VTI. 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 -0.10. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TMF charges 0.90% per year while VTI charges 0.03%. On a $10,000 position that is $90 vs $3 annually, a gap of $87 per year that compounds over a long holding period. On income, TMF currently yields 4.08% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

TMF and VTI share 0 holdings out of 2788 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, TMF or VTI?

TMF has an expense ratio of 0.90% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $87 per year of difference.

Which performed better, TMF or VTI?

Over the past year TMF returned -16.79% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), TMF annualized -7.98% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, TMF or VTI?

TMF has been the more volatile fund at 40.7% annualized versus 15.3% for VTI. Worst drawdown: TMF -93.3% vs VTI -56.6%.

Should I hold both TMF and VTI?

TMF and VTI have a monthly-return correlation of -0.10, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TMF and VTI?

TMF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2788 unique securities.

Which pays a higher dividend, TMF or VTI?

TMF yields 4.08% while VTI yields 1.07%, so TMF currently pays the higher dividend yield.

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