TSMZ vs VYM

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

MetricTSMZVYMWinner
Expense Ratio1.01%0.04%
AUM$3M$79.0B
Dividend Yield5.08%2.86%
Holdings7568
YTD Return-31.95%+16.78%
1Y Return-50.01%+24.43%
3Y Return (annualized)-+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)33.9%14.6%
Max Drawdown-74.0%-58.8%
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
InceptionOct 3, 2024Nov 10, 2006

TSMZ vs VYM Performance

Direxion Daily TSM Bear 1X ETF (TSMZ) 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 TSMZ returned -50.01% while VYM returned +24.43%. Year to date, TSMZ is down 31.95% versus a gain of 16.78% for VYM.

Risk: Volatility and Drawdowns

TSMZ has been the more volatile fund, with annualized monthly volatility of 33.9% 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 -74.0% for TSMZ 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 -0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TSMZ charges 1.01% per year while VYM charges 0.04%. On a $10,000 position that is $101 vs $4 annually, a gap of $97 per year that compounds over a long holding period. On income, TSMZ currently yields 5.08% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TSMZ 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, TSMZ or VYM?

TSMZ has an expense ratio of 1.01% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $97 per year of difference.

Which performed better, TSMZ or VYM?

Over the past year TSMZ returned -50.01% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TSMZ annualized -44.70% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, TSMZ or VYM?

TSMZ has been the more volatile fund at 33.9% annualized versus 14.6% for VYM. Worst drawdown: TSMZ -74.0% vs VYM -58.8%.

Should I hold both TSMZ and VYM?

TSMZ and VYM have a monthly-return correlation of -0.24, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TSMZ and VYM?

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

Which pays a higher dividend, TSMZ or VYM?

TSMZ yields 5.08% while VYM yields 2.86%, so TSMZ currently pays the higher dividend yield.

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