UCO vs VYM
ProShares Ultra Bloomberg Crude Oil vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. UCO delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | UCO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $416M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 9 | 568 | |
| YTD Return | +117.02% | +16.16% | |
| 1Y Return | +83.18% | +26.05% | |
| 3Y Return (annualized) | +10.46% | +18.43% | |
| 5Y Return (annualized) | +17.99% | +12.21% | |
| Volatility (annualized) | 65.1% | 14.6% | |
| Max Drawdown | -100.0% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 24, 2008 | Nov 10, 2006 |
UCO vs VYM Performance
ProShares Ultra Bloomberg Crude Oil (UCO) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UCO returned +83.18% while VYM returned +26.05%. Year to date, UCO is up 117.02% versus a gain of 16.16% for VYM.
Over three years, UCO compounded at +10.46% per year against +18.43% for VYM; over five years the annualized figures are +17.99% and +12.21% respectively. Across the full 18-year window we track, VYM has the edge at +7.09% annualized vs -24.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UCO has been the more volatile fund, with annualized monthly volatility of 65.1% 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 UCO 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UCO charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, UCO currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
UCO and VYM share 0 holdings out of 559 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, UCO or VYM?
UCO has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, UCO or VYM?
Over the past year UCO returned +83.18% vs +26.05% for VYM, so UCO leads on 1-year performance. Over the longest common window we track (18 years), UCO annualized -24.03% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, UCO or VYM?
UCO has been the more volatile fund at 65.1% annualized versus 14.6% for VYM. Worst drawdown: UCO -100.0% vs VYM -58.8%.
Should I hold both UCO and VYM?
UCO and VYM have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UCO and VYM?
UCO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, UCO or VYM?
UCO yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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