DFAR vs VYM
DFAR vs VYM
Dimensional US Real Estate 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 558 holdings.
Side-by-Side Comparison
| Metric | DFAR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.04% | |
| AUM | $1.8B | $79.0B | |
| Dividend Yield | 2.69% | 2.86% | |
| Holdings | 130 | 568 | |
| YTD Return | +16.75% | +15.80% | |
| 1Y Return | +17.89% | +26.12% | |
| 3Y Return (annualized) | +10.56% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 18.3% | 14.6% | |
| Max Drawdown | -32.3% | -58.8% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 23, 2022 | Nov 10, 2006 |
DFAR vs VYM Performance
Dimensional US Real Estate ETF (DFAR) is a ETF from Dimensional and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFAR returned +17.89% while VYM returned +26.12%. Year to date, DFAR is up 16.75% versus a gain of 15.80% for VYM.
Over three years, DFAR compounded at +10.56% per year against +18.25% for VYM. Across the full 4-year window we track, VYM has the edge at +7.07% 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 14.6% 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 -32.3% for DFAR 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAR charges 0.19% per year while VYM charges 0.04%. On a $10,000 position that is $19 vs $4 annually, a gap of $15 per year that compounds over a long holding period. On income, DFAR currently yields 2.69% against 2.86% for VYM.
Holdings Overlap
DFAR and VYM share 0 holdings out of 682 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, DFAR or VYM?
DFAR has an expense ratio of 0.19% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, DFAR or VYM?
Over the past year DFAR returned +17.89% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), DFAR annualized +3.92% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, DFAR or VYM?
DFAR has been the more volatile fund at 18.3% annualized versus 14.6% for VYM. Worst drawdown: DFAR -32.3% vs VYM -58.8%.
Should I hold both DFAR and VYM?
DFAR and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAR and VYM?
DFAR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 682 unique securities.
Which pays a higher dividend, DFAR or VYM?
DFAR yields 2.69% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.