DFJ vs VYM
WisdomTree Japan SmallCap Dividend Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. DFJ delivered stronger 1-year returns. DFJ offers more diversification with 794 holdings.
Side-by-Side Comparison
| Metric | DFJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $382M | $79.0B | |
| Dividend Yield | 2.65% | 2.86% | |
| Holdings | 804 | 568 | |
| YTD Return | +17.73% | +15.80% | |
| 1Y Return | +26.55% | +26.12% | |
| 3Y Return (annualized) | +20.87% | +18.25% | |
| 5Y Return (annualized) | +11.36% | +12.51% | |
| Volatility (annualized) | 14.3% | 14.6% | |
| Max Drawdown | -46.7% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Nov 10, 2006 |
DFJ vs VYM Performance
WisdomTree Japan SmallCap Dividend Fund (DFJ) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFJ returned +26.55% while VYM returned +26.12%. Year to date, DFJ is up 17.73% versus a gain of 15.80% for VYM.
Over three years, DFJ compounded at +20.87% per year against +18.25% for VYM; over five years the annualized figures are +11.36% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +4.84%. 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 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 -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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFJ 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, DFJ currently yields 2.65% against 2.86% for VYM.
Holdings Overlap
DFJ and VYM share 0 holdings out of 1352 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 VYM?
DFJ 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, DFJ or VYM?
Over the past year DFJ returned +26.55% vs +26.12% for VYM, so DFJ leads on 1-year performance. Over the longest common window we track (20 years), DFJ annualized +4.84% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, DFJ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.3% for DFJ. Worst drawdown: DFJ -46.7% vs VYM -58.8%.
Should I hold both DFJ and VYM?
DFJ and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFJ and VYM?
DFJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1352 unique securities.
Which pays a higher dividend, DFJ or VYM?
DFJ yields 2.65% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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