DFAR vs VOO
Dimensional US Real Estate ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | DFAR | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $1.8B | $979.0B | |
| Dividend Yield | 2.69% | 1.09% | |
| Holdings | 130 | 509 | |
| YTD Return | +16.75% | +13.80% | |
| 1Y Return | +17.89% | +23.71% | |
| 3Y Return (annualized) | +10.56% | +21.50% | |
| 5Y Return (annualized) | - | +13.44% | |
| Volatility (annualized) | 18.3% | 14.1% | |
| Max Drawdown | -32.3% | -34.3% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 23, 2022 | Sep 7, 2010 |
DFAR vs VOO Performance
Dimensional US Real Estate ETF (DFAR) is a ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DFAR returned +17.89% while VOO returned +23.71%. Year to date, DFAR is up 16.75% versus a gain of 13.80% for VOO.
Over three years, DFAR compounded at +10.56% per year against +21.50% for VOO. Across the full 4-year window we track, VOO has the edge at +13.58% annualized vs +3.92%. 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 14.1% 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 -34.3% for VOO. 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 0.77. 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 2.69% against 1.09% for VOO.
Holdings Overlap
DFAR and VOO share 28 holdings out of 601 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $16 per year of difference.
Which performed better, DFAR or VOO?
Over the past year DFAR returned +17.89% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), DFAR annualized +3.92% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, DFAR or VOO?
DFAR has been the more volatile fund at 18.3% annualized versus 14.1% for VOO. Worst drawdown: DFAR -32.3% vs VOO -34.3%.
Should I hold both DFAR and VOO?
DFAR and VOO have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAR and VOO?
DFAR and VOO share 28 common holdings with a 1.8% weight overlap. Combined, they hold 601 unique securities.
Which pays a higher dividend, DFAR or VOO?
DFAR yields 2.69% while VOO yields 1.09%, so DFAR currently pays the higher dividend yield.
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