DFNM vs VOO
Dimensional National Municipal Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. DFNM offers more diversification with 1,094 holdings.
Side-by-Side Comparison
| Metric | DFNM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.03% | |
| AUM | $2.3B | $997.4B | |
| Dividend Yield | 2.98% | 1.08% | |
| Holdings | 1,094 | 509 | |
| YTD Return | +0.87% | +14.27% | |
| 1Y Return | +3.88% | +21.79% | |
| 3Y Return (annualized) | +3.12% | +22.19% | |
| 5Y Return (annualized) | - | +13.28% | |
| Volatility (annualized) | 4.1% | 14.2% | |
| Max Drawdown | -7.0% | -34.3% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 15, 2021 | Sep 7, 2010 |
DFNM vs VOO Performance
Dimensional National Municipal Bond ETF (DFNM) is a ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DFNM returned +3.88% while VOO returned +21.79%. Year to date, DFNM is up 0.87% versus a gain of 14.27% for VOO.
Over three years, DFNM compounded at +3.12% per year against +22.19% for VOO. Across the full 5-year window we track, VOO has the edge at +13.59% annualized vs +1.30%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 4.1% for DFNM. 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 -7.0% for DFNM and -34.3% for VOO. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFNM charges 0.17% per year while VOO charges 0.03%. On a $10,000 position that is $17 vs $3 annually, a gap of $14 per year that compounds over a long holding period. On income, DFNM currently yields 2.98% against 1.08% for VOO.
Holdings Overlap
DFNM and VOO share 0 holdings out of 679 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, DFNM or VOO?
DFNM has an expense ratio of 0.17% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, DFNM or VOO?
Over the past year DFNM returned +3.88% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), DFNM annualized +1.30% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, DFNM or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 4.1% for DFNM. Worst drawdown: DFNM -7.0% vs VOO -34.3%.
Should I hold both DFNM and VOO?
DFNM and VOO have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFNM and VOO?
DFNM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 679 unique securities.
Which pays a higher dividend, DFNM or VOO?
DFNM yields 2.98% while VOO yields 1.08%, so DFNM currently pays the higher dividend yield.
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