DFCF vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. DFCF offers more diversification with 1491 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: DFCF

Side-by-Side Comparison

MetricDFCFVYMWinner
Expense Ratio0.17%0.04%
AUM$10.9B$79.0B
Dividend Yield4.34%2.86%
Holdings1,618568
YTD Return+0.21%+15.80%
1Y Return+2.74%+26.12%
3Y Return (annualized)+4.80%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)6.9%14.6%
Max Drawdown-19.6%-58.8%
Fund FamilyDimensionalVanguard (US)
CategoryFixed IncomeEquity
InceptionNov 15, 2021Nov 10, 2006

DFCF vs VYM Performance

Dimensional Core Fixed Income ETF (DFCF) is a ETF from Dimensional and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFCF returned +2.74% while VYM returned +26.12%. Year to date, DFCF is up 0.21% versus a gain of 15.80% for VYM.

Over three years, DFCF compounded at +4.80% per year against +18.25% for VYM. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs +0.07%. 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 6.9% for DFCF. 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 -19.6% for DFCF 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DFCF charges 0.17% per year while VYM charges 0.04%. On a $10,000 position that is $17 vs $4 annually, a gap of $13 per year that compounds over a long holding period. On income, DFCF currently yields 4.34% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

DFCF and VYM share 0 holdings out of 2049 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, DFCF or VYM?

DFCF has an expense ratio of 0.17% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $13 per year of difference.

Which performed better, DFCF or VYM?

Over the past year DFCF returned +2.74% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), DFCF annualized +0.07% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, DFCF or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.9% for DFCF. Worst drawdown: DFCF -19.6% vs VYM -58.8%.

Should I hold both DFCF and VYM?

DFCF and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DFCF and VYM?

DFCF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2049 unique securities.

Which pays a higher dividend, DFCF or VYM?

DFCF yields 4.34% while VYM yields 2.86%, so DFCF currently pays the higher dividend yield.

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