VYM vs WEBS
Vanguard High Dividend Yield ETF vs Direxion Daily Dow Jones Internet Bear 3X ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VYM | WEBS | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 1.07% | |
| AUM | $81.6B | $7M | |
| Dividend Yield | 2.24% | 3.20% | |
| Holdings | 616 | 6 | |
| YTD Return | +14.84% | -33.66% | |
| 1Y Return | +20.88% | -24.27% | |
| 3Y Return (annualized) | +18.34% | -50.26% | |
| 5Y Return (annualized) | +12.04% | -35.07% | |
| Volatility (annualized) | 14.6% | 65.6% | |
| Max Drawdown | -58.8% | -99.7% | |
| Fund Family | Vanguard (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Nov 7, 2019 |
VYM vs WEBS Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Direxion Daily Dow Jones Internet Bear 3X ETF (WEBS) is a ETF from Direxion Shares ETF Trust. Over the past year VYM returned +20.88% while WEBS returned -24.27%. Year to date, VYM is up 14.84% versus a loss of 33.66% for WEBS.
Over three years, VYM compounded at +18.34% per year against -50.26% for WEBS; over five years the annualized figures are +12.04% and -35.07% respectively. Across the full 7-year window we track, VYM has the edge at +7.01% annualized vs -52.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEBS has been the more volatile fund, with annualized monthly volatility of 65.6% 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 -99.7% for WEBS. 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 -0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while WEBS charges 1.07%. On a $10,000 position that is $4 vs $107 annually, a gap of $103 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 3.20% for WEBS.
Holdings Overlap
VYM and WEBS share 0 holdings out of 605 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, VYM or WEBS?
VYM has an expense ratio of 0.04% while WEBS charges 1.07%. VYM is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, VYM or WEBS?
Over the past year VYM returned +20.88% vs -24.27% for WEBS, so VYM leads on 1-year performance. Over the longest common window we track (7 years), VYM annualized +7.01% vs -52.51% for WEBS. Past performance does not guarantee future results.
Which is riskier, VYM or WEBS?
WEBS has been the more volatile fund at 65.6% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WEBS -99.7%.
Should I hold both VYM and WEBS?
VYM and WEBS have a monthly-return correlation of -0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and WEBS?
VYM and WEBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, VYM or WEBS?
VYM yields 2.24% while WEBS yields 3.20%, so WEBS currently pays the higher dividend yield.
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