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

MetricTMVVYMWinner
Expense Ratio0.97%0.04%
AUM$180M$79.0B
Dividend Yield2.60%2.86%
Holdings9568
YTD Return+13.74%+15.80%
1Y Return+15.58%+26.12%
3Y Return (annualized)+10.28%+18.25%
5Y Return (annualized)+25.82%+12.51%
Volatility (annualized)40.1%14.6%
Max Drawdown-99.1%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionApr 16, 2009Nov 10, 2006

TMV vs VYM Performance

Direxion Daily 20+ Year Treasury Bear 3X ETF (TMV) 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 TMV returned +15.58% while VYM returned +26.12%. Year to date, TMV is up 13.74% versus a gain of 15.80% for VYM.

Over three years, TMV compounded at +10.28% per year against +18.25% for VYM; over five years the annualized figures are +25.82% and +12.51% respectively. Across the full 17-year window we track, VYM has the edge at +7.07% annualized vs -14.93%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TMV has been the more volatile fund, with annualized monthly volatility of 40.1% 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 -99.1% for TMV 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TMV charges 0.97% per year while VYM charges 0.04%. On a $10,000 position that is $97 vs $4 annually, a gap of $93 per year that compounds over a long holding period. On income, TMV currently yields 2.60% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TMV and VYM share 0 holdings out of 561 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, TMV or VYM?

TMV has an expense ratio of 0.97% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $93 per year of difference.

Which performed better, TMV or VYM?

Over the past year TMV returned +15.58% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), TMV annualized -14.93% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, TMV or VYM?

TMV has been the more volatile fund at 40.1% annualized versus 14.6% for VYM. Worst drawdown: TMV -99.1% vs VYM -58.8%.

Should I hold both TMV and VYM?

TMV and VYM have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TMV and VYM?

TMV and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.

Which pays a higher dividend, TMV or VYM?

TMV yields 2.60% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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