DFAR vs VOO

DFAR vs VOO

Which is better, DFAR or VOO?

VOO has been ahead.

VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 49.9%.

Lower Fees: VOOHigher Returns: VOOLess Concentrated: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricDFARVOO
Expense Ratio0.19%0.03%Best
AUM$1.7B$997.4B
Dividend Yield2.71%1.04%
Holdings124509
YTD Return+11.00%+12.25%Best
1Y Return+9.59%+17.03%Best
3Y Return (annualized)+9.66%+21.25%Best
5Y Return (annualized)-+13.08%
Volatility (annualized)18.3%15.6%Best
Max Drawdown-32.3%-22.1%Best
$10,000 over 4.6 years$11,294$19,081Best
Top 10 Weight49.9%37.6%Best
Fund FamilyDimensionalVanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionFeb 23, 2022Sep 7, 2010

Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 24, 2022 to Sep 17, 2026 (4.6 years).

DFAR vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.6 years both funds cover.

DFAR vs VOO Performance

Dimensional US Real Estate ETF (DFAR) is an ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year DFAR returned +9.59% while VOO returned +17.03%. Year to date, DFAR is up 11.00% versus a gain of 12.25% for VOO.

Over three years, DFAR compounded at +9.66% per year against +21.25% for VOO.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DFAR has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.6% for VOO. 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 -32.3% for DFAR and -22.1% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DFAR charges 0.19% per year while VOO charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, DFAR currently yields 2.71% against 1.04% for VOO.

Holdings Overlap

DFAR already in VOO72.7%
VOO already in DFAR1.8%

72.7% of DFAR's money is in holdings VOO also owns. 1.8% of VOO's money is in holdings DFAR also owns.

Most of DFAR is already inside VOO. Owning both mostly buys the same companies twice.

27 positions in common, counted across the 120 positions we hold weights for in DFAR and 494 in VOO, against full books of 124 and 509.

What only one of them owns

Measured across the 120 and 494 positions we hold weights for.

VOO holds 460 positions DFAR does not, 97.4% of the fund.

Largest: NVDA 7.55%, AAPL 7.05%, MSFT 5.36%, AMZN 4.13%, GOOGL 3.24%

Top Shared Holdings

StockWeight in DFARWeight in VOODifference
WELLWelltower, Inc.7.95%0.26%7.69%
PLDPrologis Inc6.91%0.21%6.70%
EQIXEquinix Inc. Real Estate Investment Trust5.42%0.16%5.26%
AMTAmerican Tower Corporation4.70%0.13%4.57%
SPGSimon Property Group Inc4.52%0.12%4.40%
DLRDigital Realty Trust Inc.4.53%0.10%4.43%
ORealty Income Corp.4.46%0.09%4.37%
PSAPublic Storage4.00%0.08%3.92%
EQRVivmark Residential3.76%0.04%3.72%
VTRVentas  Inc .3.64%0.07%3.57%

72.7% of DFAR is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

DFARVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, DFAR or VOO?

DFAR has an expense ratio of 0.19% while VOO charges 0.03%. VOO is the cheaper option, by $16 a year on a $10,000 investment.

Which performed better, DFAR or VOO?

Over the past year DFAR returned +9.59% vs +17.03% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DFAR or VOO?

DFAR has been the more volatile fund at 18.3% annualized versus 15.6% for VOO. Worst drawdown: DFAR -32.3% vs VOO -22.1%.

Should I hold both DFAR and VOO?

DFAR and VOO have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between DFAR and VOO?

72.7% of DFAR's money is in holdings VOO also owns. 1.8% of VOO's is in holdings DFAR also owns. They hold 27 positions in common, counted across the 120 positions we hold weights for in DFAR and 494 in VOO.

Which pays a higher dividend, DFAR or VOO?

DFAR yields 2.71% while VOO yields 1.04%, so DFAR currently pays the higher dividend yield.

Is VOO better than DFAR?

VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 49.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.