DALI vs VYM

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

MetricDALIVYMWinner
Expense Ratio0.90%0.04%
AUM$97M$79.0B
Dividend Yield0.38%2.86%
Holdings8568
YTD Return+0.30%+16.10%
1Y Return+9.09%+25.99%
3Y Return (annualized)+4.26%+18.29%
5Y Return (annualized)+3.57%+12.35%
Volatility (annualized)16.9%14.6%
Max Drawdown-36.1%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAllocation/BalancedEquity
InceptionMay 14, 2018Nov 10, 2006

DALI vs VYM Performance

First Trust Dorsey Wright DALI Equity ETF (DALI) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DALI returned +9.09% while VYM returned +25.99%. Year to date, DALI is up 0.30% versus a gain of 16.10% for VYM.

Over three years, DALI compounded at +4.26% per year against +18.29% for VYM; over five years the annualized figures are +3.57% and +12.35% respectively. Across the full 8-year window we track, VYM has the edge at +7.08% annualized vs +5.34%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DALI has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -36.1% for DALI 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DALI charges 0.90% per year while VYM charges 0.04%. On a $10,000 position that is $90 vs $4 annually, a gap of $86 per year that compounds over a long holding period. On income, DALI currently yields 0.38% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

DALI and VYM share 0 holdings out of 565 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, DALI or VYM?

DALI has an expense ratio of 0.90% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $86 per year of difference.

Which performed better, DALI or VYM?

Over the past year DALI returned +9.09% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), DALI annualized +5.34% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, DALI or VYM?

DALI has been the more volatile fund at 16.9% annualized versus 14.6% for VYM. Worst drawdown: DALI -36.1% vs VYM -58.8%.

Should I hold both DALI and VYM?

DALI and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DALI and VYM?

DALI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 565 unique securities.

Which pays a higher dividend, DALI or VYM?

DALI yields 0.38% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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