DFIC vs VYM
Dimensional International Core Equity 2 ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. DFIC offers more diversification with 3969 holdings.
Side-by-Side Comparison
| Metric | DFIC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.22% | 0.04% | |
| AUM | $14.5B | $79.0B | |
| Dividend Yield | 2.43% | 2.86% | |
| Holdings | 4,111 | 568 | |
| YTD Return | +12.50% | +16.10% | |
| 1Y Return | +24.95% | +25.99% | |
| 3Y Return (annualized) | +19.73% | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 16.0% | 14.6% | |
| Max Drawdown | -24.4% | -58.8% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 23, 2022 | Nov 10, 2006 |
DFIC vs VYM Performance
Dimensional International Core Equity 2 ETF (DFIC) is a ETF from Dimensional and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFIC returned +24.95% while VYM returned +25.99%. Year to date, DFIC is up 12.50% versus a gain of 16.10% for VYM.
Over three years, DFIC compounded at +19.73% per year against +18.29% for VYM. Across the full 4-year window we track, DFIC has the edge at +13.27% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFIC has been the more volatile fund, with annualized monthly volatility of 16.0% 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 -24.4% for DFIC 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFIC charges 0.22% per year while VYM charges 0.04%. On a $10,000 position that is $22 vs $4 annually, a gap of $18 per year that compounds over a long holding period. On income, DFIC currently yields 2.43% against 2.86% for VYM.
Holdings Overlap
DFIC and VYM share 8 holdings out of 4519 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFIC or VYM?
DFIC has an expense ratio of 0.22% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, DFIC or VYM?
Over the past year DFIC returned +24.95% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), DFIC annualized +13.27% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, DFIC or VYM?
DFIC has been the more volatile fund at 16.0% annualized versus 14.6% for VYM. Worst drawdown: DFIC -24.4% vs VYM -58.8%.
Should I hold both DFIC and VYM?
DFIC and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFIC and VYM?
DFIC and VYM share 8 common holdings with a 0.2% weight overlap. Combined, they hold 4519 unique securities.
Which pays a higher dividend, DFIC or VYM?
DFIC yields 2.43% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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