DFJ vs SPY

Quick Verdict

SPY has a lower expense ratio. DFJ delivered stronger 1-year returns. DFJ offers more diversification with 794 holdings.

Lower Fees: SPYHigher Returns: DFJMore Diversified: DFJ

Side-by-Side Comparison

MetricDFJSPYWinner
Expense Ratio0.58%0.09%
AUM$382M$789.1B
Dividend Yield2.65%1.01%
Holdings804505
YTD Return+16.60%+13.75%
1Y Return+25.27%+22.91%
3Y Return (annualized)+20.47%+21.67%
5Y Return (annualized)+11.09%+13.32%
Volatility (annualized)14.3%15.3%
Max Drawdown-46.7%-56.5%
Fund FamilyWisdomTree InvestmentsState Street Investment Management
CategoryEquityEquity
InceptionJun 16, 2006Jan 22, 1993

DFJ vs SPY Performance

WisdomTree Japan SmallCap Dividend Fund (DFJ) is a ETF from WisdomTree Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DFJ returned +25.27% while SPY returned +22.91%. Year to date, DFJ is up 16.60% versus a gain of 13.75% for SPY.

Over three years, DFJ compounded at +20.47% per year against +21.67% for SPY; over five years the annualized figures are +11.09% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +4.79%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.3% for DFJ. 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 -46.7% for DFJ and -56.5% for SPY. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DFJ charges 0.58% per year while SPY charges 0.09%. On a $10,000 position that is $58 vs $9 annually, a gap of $49 per year that compounds over a long holding period. On income, DFJ currently yields 2.65% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

DFJ and SPY share 0 holdings out of 1297 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, DFJ or SPY?

DFJ has an expense ratio of 0.58% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $49 per year of difference.

Which performed better, DFJ or SPY?

Over the past year DFJ returned +25.27% vs +22.91% for SPY, so DFJ leads on 1-year performance. Over the longest common window we track (20 years), DFJ annualized +4.79% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, DFJ or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.3% for DFJ. Worst drawdown: DFJ -46.7% vs SPY -56.5%.

Should I hold both DFJ and SPY?

DFJ and SPY have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DFJ and SPY?

DFJ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1297 unique securities.

Which pays a higher dividend, DFJ or SPY?

DFJ yields 2.65% while SPY yields 1.01%, so DFJ currently pays the higher dividend yield.

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