DFNL vs VYM
Davis Select Financial ETF 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 | DFNL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.04% | |
| AUM | $495M | $81.6B | |
| Dividend Yield | 1.29% | 2.24% | |
| Holdings | 33 | 616 | |
| YTD Return | +8.97% | +16.42% | |
| 1Y Return | +19.68% | +24.22% | |
| 3Y Return (annualized) | +25.01% | +19.03% | |
| 5Y Return (annualized) | +12.98% | +12.21% | |
| Volatility (annualized) | 19.9% | 14.6% | |
| Max Drawdown | -44.5% | -58.8% | |
| Fund Family | Davis ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 11, 2017 | Nov 10, 2006 |
DFNL vs VYM Performance
Davis Select Financial ETF (DFNL) is a ETF from Davis ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFNL returned +19.68% while VYM returned +24.22%. Year to date, DFNL is up 8.97% versus a gain of 16.42% for VYM.
Over three years, DFNL compounded at +25.01% per year against +19.03% for VYM; over five years the annualized figures are +12.98% and +12.21% respectively. Across the full 10-year window we track, DFNL has the edge at +12.58% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFNL has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -44.5% for DFNL 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFNL charges 0.61% per year while VYM charges 0.04%. On a $10,000 position that is $61 vs $4 annually, a gap of $57 per year that compounds over a long holding period. On income, DFNL currently yields 1.29% against 2.24% for VYM.
Holdings Overlap
DFNL and VYM share 14 holdings out of 620 unique holdings combined, representing a 9.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFNL or VYM?
DFNL has an expense ratio of 0.61% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, DFNL or VYM?
Over the past year DFNL returned +19.68% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), DFNL annualized +12.58% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, DFNL or VYM?
DFNL has been the more volatile fund at 19.9% annualized versus 14.6% for VYM. Worst drawdown: DFNL -44.5% vs VYM -58.8%.
Should I hold both DFNL and VYM?
DFNL and VYM have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFNL and VYM?
DFNL and VYM share 14 common holdings with a 9.1% weight overlap. Combined, they hold 620 unique securities.
Which pays a higher dividend, DFNL or VYM?
DFNL yields 1.29% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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