TMF vs VYM
TMF vs VYM
Direxion Daily 20+ Year Treasury Bull 3X ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | TMF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.90% | 0.04% | |
| AUM | $2.3B | $79.0B | |
| Dividend Yield | 4.08% | 2.86% | |
| Holdings | 14 | 568 | |
| YTD Return | -13.88% | +15.80% | |
| 1Y Return | -15.75% | +26.12% | |
| 3Y Return (annualized) | -18.84% | +18.25% | |
| 5Y Return (annualized) | -34.00% | +12.51% | |
| Volatility (annualized) | 40.7% | 14.6% | |
| Max Drawdown | -93.3% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 16, 2009 | Nov 10, 2006 |
TMF vs VYM Performance
Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) 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 TMF returned -15.75% while VYM returned +26.12%. Year to date, TMF is down 13.88% versus a gain of 15.80% for VYM.
Over three years, TMF compounded at -18.84% per year against +18.25% for VYM; over five years the annualized figures are -34.00% and +12.51% respectively. Across the full 17-year window we track, VYM has the edge at +7.07% annualized vs -7.85%. 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 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 -93.3% for TMF 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 -0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TMF charges 0.90% per year while VYM charges 0.04%. On a $10,000 position that is $90 vs $4 annually, a gap of $86 per year that compounds over a long holding period. On income, TMF currently yields 4.08% against 2.86% for VYM.
Holdings Overlap
TMF and VYM share 0 holdings out of 563 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 VYM?
TMF has an expense ratio of 0.90% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, TMF or VYM?
Over the past year TMF returned -15.75% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), TMF annualized -7.85% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TMF or VYM?
TMF has been the more volatile fund at 40.7% annualized versus 14.6% for VYM. Worst drawdown: TMF -93.3% vs VYM -58.8%.
Should I hold both TMF and VYM?
TMF and VYM have a monthly-return correlation of -0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TMF and VYM?
TMF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 563 unique securities.
Which pays a higher dividend, TMF or VYM?
TMF yields 4.08% while VYM yields 2.86%, so TMF currently pays the higher dividend yield.
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