TZA vs VYM
Direxion Daily Small Cap Bear 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 | TZA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.99% | 0.04% | |
| AUM | $232M | $79.0B | |
| Dividend Yield | 51.31% | 2.86% | |
| Holdings | 11 | 568 | |
| YTD Return | -47.12% | +16.16% | |
| 1Y Return | -64.99% | +26.05% | |
| 3Y Return (annualized) | -44.99% | +18.43% | |
| 5Y Return (annualized) | -32.30% | +12.21% | |
| Volatility (annualized) | 55.9% | 14.6% | |
| Max Drawdown | -100.0% | -58.8% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 5, 2008 | Nov 10, 2006 |
TZA vs VYM Performance
Direxion Daily Small Cap Bear 3X ETF (TZA) 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 TZA returned -64.99% while VYM returned +26.05%. Year to date, TZA is down 47.12% versus a gain of 16.16% for VYM.
Over three years, TZA compounded at -44.99% per year against +18.43% for VYM; over five years the annualized figures are -32.30% and +12.21% respectively. Across the full 18-year window we track, VYM has the edge at +7.09% annualized vs -48.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.9% 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 -100.0% for TZA 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 -0.81. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TZA 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, TZA currently yields 51.31% against 2.86% for VYM.
Holdings Overlap
TZA 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, TZA or VYM?
TZA 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, TZA or VYM?
Over the past year TZA returned -64.99% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), TZA annualized -48.92% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, TZA or VYM?
TZA has been the more volatile fund at 55.9% annualized versus 14.6% for VYM. Worst drawdown: TZA -100.0% vs VYM -58.8%.
Should I hold both TZA and VYM?
TZA and VYM have a monthly-return correlation of -0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TZA and VYM?
TZA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, TZA or VYM?
TZA yields 51.31% while VYM yields 2.86%, so TZA currently pays the higher dividend yield.
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