DBO vs VYM

Quick Verdict

VYM has a lower expense ratio. DBO delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: DBOMore Diversified: VYM

Side-by-Side Comparison

MetricDBOVYMWinner
Expense Ratio0.75%0.04%
AUM$275M$79.0B
Dividend Yield2.45%2.86%
Holdings5568
YTD Return+71.32%+16.10%
1Y Return+61.14%+25.99%
3Y Return (annualized)+11.27%+18.29%
5Y Return (annualized)+12.84%+12.35%
Volatility (annualized)30.5%14.6%
Max Drawdown-90.2%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryCommodityEquity
InceptionJan 5, 2007Nov 10, 2006

DBO vs VYM Performance

Invesco DB Oil Fund (DBO) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DBO returned +61.14% while VYM returned +25.99%. Year to date, DBO is up 71.32% versus a gain of 16.10% for VYM.

Over three years, DBO compounded at +11.27% per year against +18.29% for VYM; over five years the annualized figures are +12.84% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +0.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DBO has been the more volatile fund, with annualized monthly volatility of 30.5% 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 -90.2% for DBO 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DBO charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, DBO currently yields 2.45% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

DBO and VYM share 0 holdings out of 560 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, DBO or VYM?

DBO has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, DBO or VYM?

Over the past year DBO returned +61.14% vs +25.99% for VYM, so DBO leads on 1-year performance. Over the longest common window we track (20 years), DBO annualized +0.05% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, DBO or VYM?

DBO has been the more volatile fund at 30.5% annualized versus 14.6% for VYM. Worst drawdown: DBO -90.2% vs VYM -58.8%.

Should I hold both DBO and VYM?

DBO and VYM have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DBO and VYM?

DBO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.

Which pays a higher dividend, DBO or VYM?

DBO yields 2.45% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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