EDC vs. VYM

Last updated Aug 5, 2026

EDC (Direxion Daily Emerging Markets Bull 3X Shares) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - EDC is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (300%), while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, EDC returned 3.69%/yr vs 11.86%/yr for VYM. Their 0.67 correlation means they have sometimes moved together and sometimes differently. EDC charges 1.33%/yr vs 0.04%/yr for VYM.

Performance

EDC vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Emerging Markets Bull 3X Shares (EDC) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EDC achieves a 42.09% return, which is significantly higher than VYM's 16.57% return. Over the past 10 years, EDC has underperformed VYM with an annualized return of 3.69%, while VYM has yielded a comparatively higher 11.86% annualized return.

EDC

• 1D: 7.65%
• 1M: -2.11%
• 6M: 12.03%
• YTD: 42.09%
• 1Y: 96.15%
• 3Y*: 37.61%
• 5Y*: -1.17%
• 10Y*: 3.69%
• ALL TIME*: 1.91%

VYM

• 1D: 1.54%
• 1M: 3.65%
• 6M: 10.11%
• YTD: 16.57%
• 1Y: 25.99%
• 3Y*: 18.31%
• 5Y*: 12.56%
• 10Y*: 11.86%
• ALL TIME*: 9.48%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
EDC Direxion Daily Emerging Markets Bull 3X Shares	$5.55M	$6.37M	$9.21M
VYM Vanguard High Dividend Yield ETF	$218.18M	$204.80M	$205.80M

EDC vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDC Direxion Daily Emerging Markets Bull 3X Shares	42.09%	94.58%	-2.00%	7.48%	-60.25%	-20.81%	6.49%	43.92%	-49.87%	138.61%
VYM Vanguard High Dividend Yield ETF	16.57%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between EDC and VYM is 0.46, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.46
Correlation (3Y) Balances recent behavior with more history.	0.51
Correlation (5Y) Shows whether the relationship held over a longer period.	0.54
Correlation (10Y) Provides a long-term view across more market conditions.	0.57
Correlation (All Time) Calculated using the full available price history since Dec 30, 2008	0.67

Over the past year, the correlation between EDC and VYM has dropped to 0.46 - well below their long-term average of 0.67, suggesting their price drivers have been diverging.

EDC vs. VYM - Sectors Allocation Comparison

Sectors	EDC	VYM
Technology	32.7%	17.8%
Financial Services	20.8%	21.0%
Consumer Cyclical	10.3%	6.8%
Communication Services	7.8%	3.0%
Industrials	7.3%	12.6%
Basic Materials	7.0%	3.3%
Energy	4.4%	8.6%
Consumer Defensive	3.2%	8.1%
Healthcare	3.2%	13.2%
Utilities	2.2%	5.7%
Real Estate	1.1%	0.0%

Return for Risk

EDC vs. VYM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

EDC

EDC Risk / Return Rank: 51
EDC Sharpe Ratio Rank: 46
EDC Sortino Ratio Rank: 45
EDC Omega Ratio Rank: 51
EDC Calmar Ratio Rank: 61
EDC Martin Ratio Rank: 52

VYM

VYM Risk / Return Rank: 90
VYM Sharpe Ratio Rank: 92
VYM Sortino Ratio Rank: 92
VYM Omega Ratio Rank: 91
VYM Calmar Ratio Rank: 88
VYM Martin Ratio Rank: 88

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

EDC vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bull 3X Shares (EDC) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	EDC	VYM	Difference
Sharpe ratio: Return per unit of total volatility	1.32	2.55	-1.24
Sortino ratio: Return per unit of downside risk	1.86	3.66	-1.80
Omega ratio: Gain probability vs. loss probability	1.26	1.47	-0.21
Calmar ratio: Return relative to maximum drawdown	2.41	3.90	-1.49
Martin ratio: Return relative to average drawdown	6.72	14.66	-7.93

EDC vs. VYM - Sharpe Ratio Comparison

The current EDC Sharpe Ratio is 1.32, which is lower than the VYM Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of EDC and VYM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EDC vs. VYM - Drawdown Comparison

The maximum EDC drawdown since its inception was -92.54%, which is greater than VYM's maximum drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for EDC and VYM.

Drawdown Indicators

	EDC	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-92.54%	-56.98%	-35.56%
Max Drawdown (1Y) Largest decline over 1 year	-40.06%	-6.69%	-33.37%
Max Drawdown (3Y) Largest decline over 3 years	-49.48%	-14.46%	-35.02%
Max Drawdown (5Y) Largest decline over 5 years	-77.83%	-15.84%	-61.99%
Max Drawdown (10Y) Largest decline over 10 years	-87.01%	-35.21%	-51.80%
Current Drawdown Current decline from peak	-69.84%	0.00%	-69.84%
Average Drawdown Average peak-to-trough decline	-65.37%	-7.14%	-58.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.35%	1.78%	+12.57%

Volatility

EDC vs. VYM - Volatility Comparison

Direxion Daily Emerging Markets Bull 3X Shares (EDC) has a higher volatility of 26.60% compared to Vanguard High Dividend Yield ETF (VYM) at 2.79%. This indicates that EDC's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDC	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	26.60%	2.79%	+23.81%
Volatility (6M) Calculated over the trailing 6-month period	67.61%	7.55%	+60.06%
Volatility (1Y) Calculated over the trailing 1-year period	73.40%	10.28%	+63.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	59.52%	13.88%	+45.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	61.65%	16.31%	+45.34%

EDC vs. VYM - Expense Ratio Comparison

EDC has a 1.33% expense ratio, which is higher than VYM's 0.04% expense ratio.

Dividends

EDC vs. VYM - Dividend Comparison

EDC's dividend yield for the trailing twelve months is around 1.40%, less than VYM's 2.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EDC Direxion Daily Emerging Markets Bull 3X Shares	1.40%	1.79%	3.94%	3.54%	0.00%	0.18%	0.44%	0.97%	0.78%	0.25%	0.00%	0.00%
VYM Vanguard High Dividend Yield ETF	2.20%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both EDC and VYM in my portfolio?

EDC and VYM have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EDC or VYM?

EDC has higher volatility (26.60%) compared to VYM (2.79%). In terms of maximum drawdown, EDC dropped -92.54% vs VYM's -56.98%.

Which ETF is better, EDC or VYM?

On 10-year performance, VYM leads with 11.86% vs 3.69% for EDC. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDC or VYM?

Over the 10-year period, VYM has performed better with a 11.86% return vs 3.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDC or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 1.33% for EDC.

Which ETF pays a higher dividend yield, EDC or VYM?

VYM has the higher dividend yield at 2.20%, compared with 1.40% for EDC.

What is the main difference between EDC and VYM?

EDC is categorized as Leveraged Equities, while VYM is Dividend. EDC tracks MSCI Emerging Markets Index (300%), while VYM tracks FTSE High Dividend Yield Index. They also come from different issuers: Direxion and Vanguard. Their fees differ too: 1.33% for EDC and 0.04% for VYM.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.55 vs 1.32), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.