DFCA vs VYM
DFCA vs VYM
Dimensional California Municipal Bond 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 | DFCA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.04% | |
| AUM | $707M | $79.0B | |
| Dividend Yield | 2.73% | 2.86% | |
| Holdings | 434 | 568 | |
| YTD Return | +0.67% | +15.80% | |
| 1Y Return | +3.71% | +26.12% | |
| 3Y Return (annualized) | +2.75% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 3.2% | 14.6% | |
| Max Drawdown | -3.3% | -58.8% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 2023 | Nov 10, 2006 |
DFCA vs VYM Performance
Dimensional California Municipal Bond ETF (DFCA) is a ETF from Dimensional and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFCA returned +3.71% while VYM returned +26.12%. Year to date, DFCA is up 0.67% versus a gain of 15.80% for VYM.
Over three years, DFCA compounded at +2.75% per year against +18.25% for VYM. Across the full 3-year window we track, VYM has the edge at +7.07% annualized vs +2.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.2% for DFCA. 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 -3.3% for DFCA 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFCA 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, DFCA currently yields 2.73% against 2.86% for VYM.
Holdings Overlap
DFCA and VYM share 0 holdings out of 646 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, DFCA or VYM?
DFCA 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, DFCA or VYM?
Over the past year DFCA returned +3.71% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), DFCA annualized +2.51% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, DFCA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.2% for DFCA. Worst drawdown: DFCA -3.3% vs VYM -58.8%.
Should I hold both DFCA and VYM?
DFCA and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFCA and VYM?
DFCA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 646 unique securities.
Which pays a higher dividend, DFCA or VYM?
DFCA yields 2.73% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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