TZA vs VYM
Direxion Daily Small Cap Bear 3X ETF vs Vanguard High Dividend Yield ETF
Which is better, TZA or VYM?
Opposite sides of the same exposure.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.81, so holding both offsets the exposure while paying both fees.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TZA | VYM |
|---|---|---|
| Expense Ratio | 0.99% | 0.04%Best |
| AUM | $250M | $81.6B |
| Dividend Yield | 4.79% | 2.22% |
| Holdings | 11 | 613 |
| YTD Return | -41.13% | +13.75%Best |
| 1Y Return | -51.16% | +19.42%Best |
| 3Y Return (annualized) | -44.92% | +18.22%Best |
| 5Y Return (annualized) | -30.54% | +12.17%Best |
| Volatility (annualized) | 55.8% | 14.2%Best |
| Max Drawdown | - | -35.7% |
| $10,000 over 5 years | $1,617 | $17,758Best |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Trading-Inverse Equity | Large Cap Value |
| Inception | Nov 5, 2008 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 5, 2008 to Sep 9, 2026 (17.8 years).
TZA vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 17.8 years both funds cover.
TZA vs VYM Performance
Direxion Daily Small Cap Bear 3X ETF (TZA) is an ETF from Direxion Shares ETF Trust and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TZA returned -51.16% while VYM returned +19.42%. Year to date, TZA is down 41.13% versus a gain of 13.75% for VYM.
Over three years, TZA compounded at -44.92% per year against +18.22% for VYM; over five years the annualized figures are -30.54% and +12.17% respectively. Across the full 18-year window we track, VYM has the edge at +9.93% annualized vs -48.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.8% compared with 14.2% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.81. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
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 4.79% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 3 holdings in TZA and 603 in VYM, totalling 114.0% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 3 positions we hold weights for in TZA and 603 in VYM, against full books of 11 and 613.
You are not choosing between two funds in isolation.
Whichever of TZA and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $95 a year on a $10,000 investment.
Which performed better, TZA or VYM?
Over the past year TZA returned -51.16% vs +19.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), TZA annualized -48.46% vs +9.93% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TZA or VYM?
TZA has been the more volatile fund at 55.8% annualized versus 14.2% for VYM.
Should I hold both TZA and VYM?
TZA and VYM have a monthly-return correlation of -0.81, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
Which pays a higher dividend, TZA or VYM?
TZA yields 4.79% while VYM yields 2.22%, so TZA currently pays the higher dividend yield.
Is VYM better than TZA?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.81, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.