TMV vs. VOO
Compare and contrast key facts about Direxion Daily 20-Year Treasury Bear 3X (TMV) and Vanguard S&P 500 ETF (VOO).
TMV and VOO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TMV is a passively managed fund by Direxion that tracks the performance of the NYSE 20 Year Plus Treasury Bond Index (-300%). It was launched on Apr 16, 2009. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both TMV and VOO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TMV or VOO.
Key characteristics
| TMV | VOO | |
|---|---|---|
| YTD Return | 37.69% | 5.63% |
| 1Y Return | 56.18% | 23.68% |
| 3Y Return (Ann) | 31.07% | 7.89% |
| 5Y Return (Ann) | 0.43% | 13.12% |
| 10Y Return (Ann) | -10.07% | 12.38% |
| Sharpe Ratio | 0.90 | 1.91 |
| Daily Std Dev | 49.92% | 11.70% |
| Max Drawdown | -99.06% | -33.99% |
| Current Drawdown | -96.40% | -4.45% |
Correlation
The correlation between TMV and VOO is 0.28, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
TMV vs. VOO - Performance Comparison
In the year-to-date period, TMV achieves a 37.69% return, which is significantly higher than VOO's 5.63% return. Over the past 10 years, TMV has underperformed VOO with an annualized return of -10.07%, while VOO has yielded a comparatively higher 12.38% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TMV vs. VOO - Expense Ratio Comparison
TMV has a 1.04% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
TMV vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 20-Year Treasury Bear 3X (TMV) and Vanguard S&P 500 ETF (VOO). 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.
Dividends
TMV vs. VOO - Dividend Comparison
TMV's dividend yield for the trailing twelve months is around 3.33%, more than VOO's 1.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TMV Direxion Daily 20-Year Treasury Bear 3X | 3.33% | 3.87% | 0.00% | 0.00% | 0.52% | 2.25% | 0.89% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VOO Vanguard S&P 500 ETF | 1.39% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
TMV vs. VOO - Drawdown Comparison
The maximum TMV drawdown since its inception was -99.06%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for TMV and VOO. For additional features, visit the drawdowns tool.
Volatility
TMV vs. VOO - Volatility Comparison
Direxion Daily 20-Year Treasury Bear 3X (TMV) has a higher volatility of 11.82% compared to Vanguard S&P 500 ETF (VOO) at 3.89%. This indicates that TMV's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.