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

MetricVYMWEBLWinner
Expense Ratio0.04%0.96%
AUM$79.0B$83M
Dividend Yield2.86%0.19%
Holdings56847
YTD Return+15.80%+12.07%
1Y Return+26.12%-2.48%
3Y Return (annualized)+18.25%+35.23%
5Y Return (annualized)+12.51%-18.71%
Volatility (annualized)14.6%73.0%
Max Drawdown-58.8%-94.4%
Fund FamilyVanguard (US)Direxion Shares ETF Trust
CategoryEquityAlternative
InceptionNov 10, 2006Nov 7, 2019

VYM vs WEBL Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Direxion Daily Dow Jones Internet Bull 3X ETF (WEBL) is a ETF from Direxion Shares ETF Trust. Over the past year VYM returned +26.12% while WEBL returned -2.48%. Year to date, VYM is up 15.80% versus a gain of 12.07% for WEBL.

Over three years, VYM compounded at +18.25% per year against +35.23% for WEBL; over five years the annualized figures are +12.51% and -18.71% respectively. Across the full 7-year window we track, VYM has the edge at +7.07% annualized vs +3.42%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

WEBL has been the more volatile fund, with annualized monthly volatility of 73.0% 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 -58.8% for VYM and -94.4% for WEBL. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while WEBL charges 0.96%. On a $10,000 position that is $4 vs $96 annually, a gap of $92 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 0.19% for WEBL.

Holdings Overlap

1.6%overlap

VYM and WEBL share 2 holdings out of 598 unique holdings combined, representing a 1.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VYMWeight in WEBLDifference
CSCO1.39%5.58%4.19%
EBAY0.18%1.32%1.14%

Frequently Asked Questions

Which is cheaper, VYM or WEBL?

VYM has an expense ratio of 0.04% while WEBL charges 0.96%. VYM is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, VYM or WEBL?

Over the past year VYM returned +26.12% vs -2.48% for WEBL, so VYM leads on 1-year performance. Over the longest common window we track (7 years), VYM annualized +7.07% vs +3.42% for WEBL. Past performance does not guarantee future results.

Which is riskier, VYM or WEBL?

WEBL has been the more volatile fund at 73.0% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WEBL -94.4%.

Should I hold both VYM and WEBL?

VYM and WEBL have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and WEBL?

VYM and WEBL share 2 common holdings with a 1.6% weight overlap. Combined, they hold 598 unique securities.

Which pays a higher dividend, VYM or WEBL?

VYM yields 2.86% while WEBL yields 0.19%, so VYM currently pays the higher dividend yield.

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