TQQQ vs VYM
ProShares UltraPro QQQ vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TQQQ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | TQQQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.82% | 0.04% | |
| AUM | $38.9B | $81.6B | |
| Dividend Yield | 0.58% | 2.24% | |
| Holdings | 128 | 616 | |
| YTD Return | +47.27% | +16.42% | |
| 1Y Return | +63.40% | +24.22% | |
| 3Y Return (annualized) | +59.56% | +19.03% | |
| 5Y Return (annualized) | +18.62% | +12.21% | |
| Volatility (annualized) | 55.3% | 14.6% | |
| Max Drawdown | -81.7% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 9, 2010 | Nov 10, 2006 |
TQQQ vs VYM Performance
ProShares UltraPro QQQ (TQQQ) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TQQQ returned +63.40% while VYM returned +24.22%. Year to date, TQQQ is up 47.27% versus a gain of 16.42% for VYM.
Over three years, TQQQ compounded at +59.56% per year against +19.03% for VYM; over five years the annualized figures are +18.62% and +12.21% respectively. Across the full 17-year window we track, TQQQ has the edge at +43.17% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TQQQ has been the more volatile fund, with annualized monthly volatility of 55.3% 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 -81.7% for TQQQ 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TQQQ charges 0.82% per year while VYM charges 0.04%. On a $10,000 position that is $82 vs $4 annually, a gap of $78 per year that compounds over a long holding period. On income, TQQQ currently yields 0.58% against 2.24% for VYM.
Holdings Overlap
TQQQ and VYM share 28 holdings out of 679 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TQQQ or VYM?
TQQQ has an expense ratio of 0.82% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $78 per year of difference.
Which performed better, TQQQ or VYM?
Over the past year TQQQ returned +63.40% vs +24.22% for VYM, so TQQQ leads on 1-year performance. Over the longest common window we track (17 years), TQQQ annualized +43.17% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, TQQQ or VYM?
TQQQ has been the more volatile fund at 55.3% annualized versus 14.6% for VYM. Worst drawdown: TQQQ -81.7% vs VYM -58.8%.
Should I hold both TQQQ and VYM?
TQQQ and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TQQQ and VYM?
TQQQ and VYM share 28 common holdings with a 5.3% weight overlap. Combined, they hold 679 unique securities.
Which pays a higher dividend, TQQQ or VYM?
TQQQ yields 0.58% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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