DFNM vs VOO
Dimensional National Municipal Bond ETF vs Vanguard S&P 500 ETF
Which is better, DFNM or VOO?
Municipal Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFNM | VOO |
|---|---|---|
| Expense Ratio | 0.17% | 0.03%Best |
| AUM | $2.3B | $997.4B |
| Dividend Yield | 2.96% | 1.04% |
| Holdings | 1,189 | 509 |
| YTD Return | -1.29% | +12.37%Best |
| 1Y Return | -0.07% | +16.61%Best |
| 3Y Return (annualized) | +2.58% | +21.37%Best |
| 5Y Return (annualized) | - | +13.49% |
| Volatility (annualized) | 4.1%Best | 15.7% |
| Max Drawdown | -7.0%Best | -24.5% |
| $10,000 over 4.8 years | $10,400 | $17,332Best |
| Fund Family | Dimensional | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Nov 15, 2021 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.8 years row, are measured over the window both funds cover: Nov 16, 2021 to Sep 18, 2026 (4.8 years).
DFNM vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.8 years both funds cover.
DFNM vs VOO Performance
Dimensional National Municipal Bond ETF (DFNM) is an ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year DFNM returned -0.07% while VOO returned +16.61%. Year to date, DFNM is down 1.29% versus a gain of 12.37% for VOO.
Over three years, DFNM compounded at +2.58% per year against +21.37% for VOO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -24.5% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
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 2.96% against 1.04% for VOO.
Holdings Overlap
We hold position weights for 169 holdings in DFNM and 494 in VOO, totalling 14.0% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 169 positions we hold weights for in DFNM and 494 in VOO, against full books of 1,189 and 509.
You are not choosing between two funds in isolation.
Whichever of DFNM and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $14 a year on a $10,000 investment.
Which performed better, DFNM or VOO?
Over the past year DFNM returned -0.07% vs +16.61% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFNM or VOO?
VOO has been the more volatile fund at 15.7% annualized versus 4.1% for DFNM. Worst drawdown: DFNM -7.0% vs VOO -24.5%.
Should I hold both DFNM and VOO?
DFNM and VOO have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, DFNM or VOO?
DFNM yields 2.96% while VOO yields 1.04%, so DFNM currently pays the higher dividend yield.
Is VOO better than DFNM?
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.