DEMZ vs VYM
Democratic Large Cap Core ETF vs Vanguard High Dividend Yield 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 | DEMZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.04% | |
| AUM | $68M | $81.6B | |
| Dividend Yield | 0.89% | 2.24% | |
| Holdings | 44 | 616 | |
| YTD Return | +11.23% | +14.66% | |
| 1Y Return | +19.65% | +22.16% | |
| 3Y Return (annualized) | +21.83% | +18.72% | |
| 5Y Return (annualized) | +12.11% | +12.18% | |
| Volatility (annualized) | 16.2% | 14.6% | |
| Max Drawdown | -27.2% | -58.8% | |
| Fund Family | DEMZ | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 2, 2020 | Nov 10, 2006 |
DEMZ vs VYM Performance
Democratic Large Cap Core ETF (DEMZ) is a ETF from DEMZ and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DEMZ returned +19.65% while VYM returned +22.16%. Year to date, DEMZ is up 11.23% versus a gain of 14.66% for VYM.
Over three years, DEMZ compounded at +21.83% per year against +18.72% for VYM; over five years the annualized figures are +12.11% and +12.18% respectively. Across the full 6-year window we track, DEMZ has the edge at +16.60% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DEMZ has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -27.2% for DEMZ 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DEMZ charges 0.45% per year while VYM charges 0.04%. On a $10,000 position that is $45 vs $4 annually, a gap of $41 per year that compounds over a long holding period. On income, DEMZ currently yields 0.89% against 2.24% for VYM.
Holdings Overlap
DEMZ and VYM share 10 holdings out of 635 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DEMZ or VYM?
DEMZ has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, DEMZ or VYM?
Over the past year DEMZ returned +19.65% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), DEMZ annualized +16.60% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, DEMZ or VYM?
DEMZ has been the more volatile fund at 16.2% annualized versus 14.6% for VYM. Worst drawdown: DEMZ -27.2% vs VYM -58.8%.
Should I hold both DEMZ and VYM?
DEMZ and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEMZ and VYM?
DEMZ and VYM share 10 common holdings with a 2.2% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, DEMZ or VYM?
DEMZ yields 0.89% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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