DES vs VYM
WisdomTree US SmallCap Dividend Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. DES delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | DES | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $2.2B | $81.6B | |
| Dividend Yield | 2.26% | 2.24% | |
| Holdings | 530 | 616 | |
| YTD Return | +21.92% | +14.95% | |
| 1Y Return | +21.31% | +21.14% | |
| 3Y Return (annualized) | +14.44% | +18.69% | |
| 5Y Return (annualized) | +7.67% | +12.00% | |
| Volatility (annualized) | 20.1% | 14.6% | |
| Max Drawdown | -68.1% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Nov 10, 2006 |
DES vs VYM Performance
WisdomTree US SmallCap Dividend Fund (DES) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DES returned +21.31% while VYM returned +21.14%. Year to date, DES is up 21.92% versus a gain of 14.95% for VYM.
Over three years, DES compounded at +14.44% per year against +18.69% for VYM; over five years the annualized figures are +7.67% and +12.00% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs +5.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DES has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.1% for DES 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DES charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, DES currently yields 2.26% against 2.24% for VYM.
Holdings Overlap
DES and VYM share 138 holdings out of 975 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DES or VYM?
DES has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, DES or VYM?
Over the past year DES returned +21.31% vs +21.14% for VYM, so DES leads on 1-year performance. Over the longest common window we track (20 years), DES annualized +5.24% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, DES or VYM?
DES has been the more volatile fund at 20.1% annualized versus 14.6% for VYM. Worst drawdown: DES -68.1% vs VYM -58.8%.
Should I hold both DES and VYM?
DES and VYM have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DES and VYM?
DES and VYM share 138 common holdings with a 1.9% weight overlap. Combined, they hold 975 unique securities.
Which pays a higher dividend, DES or VYM?
DES yields 2.26% while VYM yields 2.24%, so DES currently pays the higher dividend yield.
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