DFE vs VYM
WisdomTree Europe SmallCap Dividend Fund 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 616 holdings.
Side-by-Side Comparison
| Metric | DFE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $169M | $81.6B | |
| Dividend Yield | 3.95% | 2.24% | |
| Holdings | 381 | 616 | |
| YTD Return | +9.97% | +16.42% | |
| 1Y Return | +14.33% | +24.22% | |
| 3Y Return (annualized) | +16.31% | +19.03% | |
| 5Y Return (annualized) | +4.80% | +12.21% | |
| Volatility (annualized) | 22.0% | 14.6% | |
| Max Drawdown | -74.3% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Nov 10, 2006 |
DFE vs VYM Performance
WisdomTree Europe SmallCap Dividend Fund (DFE) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFE returned +14.33% while VYM returned +24.22%. Year to date, DFE is up 9.97% versus a gain of 16.42% for VYM.
Over three years, DFE compounded at +16.31% per year against +19.03% for VYM; over five years the annualized figures are +4.80% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +3.34%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFE has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -74.3% for DFE 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFE charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, DFE currently yields 3.95% against 2.24% for VYM.
Holdings Overlap
DFE and VYM share 1 holdings out of 970 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DFE | Weight in VYM | Difference |
|---|---|---|---|
| THO | 0.05% | 0.02% | 0.03% |
Frequently Asked Questions
Which is cheaper, DFE or VYM?
DFE has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, DFE or VYM?
Over the past year DFE returned +14.33% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), DFE annualized +3.34% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, DFE or VYM?
DFE has been the more volatile fund at 22.0% annualized versus 14.6% for VYM. Worst drawdown: DFE -74.3% vs VYM -58.8%.
Should I hold both DFE and VYM?
DFE and VYM 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 DFE and VYM?
DFE and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 970 unique securities.
Which pays a higher dividend, DFE or VYM?
DFE yields 3.95% while VYM yields 2.24%, so DFE currently pays the higher dividend yield.
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