TSMX vs VYM
Direxion Daily TSM Bull 2X ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TSMX delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | TSMX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.99% | 0.04% | |
| AUM | $587M | $79.0B | |
| Dividend Yield | 3.95% | 2.86% | |
| Holdings | 10 | 568 | |
| YTD Return | +44.53% | +16.10% | |
| 1Y Return | +132.64% | +25.99% | |
| 3Y Return (annualized) | - | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 72.7% | 14.6% | |
| Max Drawdown | -63.8% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 3, 2024 | Nov 10, 2006 |
TSMX vs VYM Performance
Direxion Daily TSM Bull 2X ETF (TSMX) 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 TSMX returned +132.64% while VYM returned +25.99%. Year to date, TSMX is up 44.53% versus a gain of 16.10% for VYM.
Risk: Volatility and Drawdowns
TSMX has been the more volatile fund, with annualized monthly volatility of 72.7% 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 -63.8% for TSMX 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TSMX charges 0.99% per year while VYM charges 0.04%. On a $10,000 position that is $99 vs $4 annually, a gap of $95 per year that compounds over a long holding period. On income, TSMX currently yields 3.95% against 2.86% for VYM.
Holdings Overlap
TSMX and VYM share 0 holdings out of 562 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, TSMX or VYM?
TSMX has an expense ratio of 0.99% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $95 per year of difference.
Which performed better, TSMX or VYM?
Over the past year TSMX returned +132.64% vs +25.99% for VYM, so TSMX leads on 1-year performance. Over the longest common window we track (2 years), TSMX annualized +91.09% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, TSMX or VYM?
TSMX has been the more volatile fund at 72.7% annualized versus 14.6% for VYM. Worst drawdown: TSMX -63.8% vs VYM -58.8%.
Should I hold both TSMX and VYM?
TSMX and VYM have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TSMX and VYM?
TSMX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, TSMX or VYM?
TSMX yields 3.95% while VYM yields 2.86%, so TSMX currently pays the higher dividend yield.
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