DFAU vs VYM
Dimensional US Core Equity Market ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. DFAU offers more diversification with 2,124 holdings.
Side-by-Side Comparison
| Metric | DFAU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.04% | |
| AUM | $12.9B | $81.6B | |
| Dividend Yield | 0.91% | 2.24% | |
| Holdings | 2,124 | 616 | |
| YTD Return | +13.50% | +15.34% | |
| 1Y Return | +22.72% | +23.24% | |
| 3Y Return (annualized) | +21.48% | +19.22% | |
| 5Y Return (annualized) | +12.59% | +12.21% | |
| Volatility (annualized) | 15.1% | 14.6% | |
| Max Drawdown | -23.6% | -58.8% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 17, 2020 | Nov 10, 2006 |
DFAU vs VYM Performance
Dimensional US Core Equity Market ETF (DFAU) is a ETF from Dimensional and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFAU returned +22.72% while VYM returned +23.24%. Year to date, DFAU is up 13.50% versus a gain of 15.34% for VYM.
Over three years, DFAU compounded at +21.48% per year against +19.22% for VYM; over five years the annualized figures are +12.59% and +12.21% respectively. Across the full 6-year window we track, DFAU has the edge at +15.49% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAU has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -23.6% for DFAU 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAU charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, DFAU currently yields 0.91% against 2.24% for VYM.
Holdings Overlap
DFAU and VYM share 527 holdings out of 2177 unique holdings combined, representing a 34.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFAU or VYM?
DFAU has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, DFAU or VYM?
Over the past year DFAU returned +22.72% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), DFAU annualized +15.49% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, DFAU or VYM?
DFAU has been the more volatile fund at 15.1% annualized versus 14.6% for VYM. Worst drawdown: DFAU -23.6% vs VYM -58.8%.
Should I hold both DFAU and VYM?
DFAU and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAU and VYM?
DFAU and VYM share 527 common holdings with a 34.3% weight overlap. Combined, they hold 2177 unique securities.
Which pays a higher dividend, DFAU or VYM?
DFAU yields 0.91% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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