DFNM vs VTI
Dimensional National Municipal Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | DFNM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.03% | |
| AUM | $2.3B | $666.9B | |
| Dividend Yield | 2.98% | 1.07% | |
| Holdings | 1,094 | 3,543 | |
| YTD Return | +0.28% | +13.14% | |
| 1Y Return | +3.38% | +22.35% | |
| 3Y Return (annualized) | +3.06% | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 4.1% | 15.3% | |
| Max Drawdown | -7.0% | -56.6% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 15, 2021 | May 24, 2001 |
DFNM vs VTI Performance
Dimensional National Municipal Bond ETF (DFNM) is a ETF from Dimensional and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year DFNM returned +3.38% while VTI returned +22.35%. Year to date, DFNM is up 0.28% versus a gain of 13.14% for VTI.
Over three years, DFNM compounded at +3.06% per year against +21.83% for VTI. Across the full 5-year window we track, VTI has the edge at +8.09% annualized vs +1.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.
Holdings Overlap
DFNM and VTI share 0 holdings out of 2961 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 VTI?
DFNM has an expense ratio of 0.17% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, DFNM or VTI?
Over the past year DFNM returned +3.38% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), DFNM annualized +1.17% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, DFNM or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.1% for DFNM. Worst drawdown: DFNM -7.0% vs VTI -56.6%.
Should I hold both DFNM and VTI?
DFNM and VTI 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 VTI?
DFNM and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2961 unique securities.
Which pays a higher dividend, DFNM or VTI?
DFNM yields 2.98% while VTI yields 1.07%, so DFNM currently pays the higher dividend yield.
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