DFSD vs VTI
Dimensional Short-Duration Fixed Income ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | DFSD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.16% | 0.03% | |
| AUM | $7.1B | $663.5B | |
| Dividend Yield | 4.18% | 1.07% | |
| Holdings | 1,500 | 3,543 | |
| YTD Return | +0.91% | +13.87% | |
| 1Y Return | +3.03% | +23.31% | |
| 3Y Return (annualized) | +5.26% | +21.17% | |
| 5Y Return (annualized) | - | +12.23% | |
| Volatility (annualized) | 2.7% | 15.3% | |
| Max Drawdown | -8.4% | -56.6% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2021 | May 24, 2001 |
DFSD vs VTI Performance
Dimensional Short-Duration Fixed Income ETF (DFSD) is a ETF from Dimensional and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year DFSD returned +3.03% while VTI returned +23.31%. Year to date, DFSD is up 0.91% versus a gain of 13.87% for VTI.
Over three years, DFSD compounded at +5.26% per year against +21.17% for VTI. Across the full 5-year window we track, VTI has the edge at +8.13% annualized vs +2.50%. 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 2.7% for DFSD. 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 -8.4% for DFSD 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFSD charges 0.16% per year while VTI charges 0.03%. On a $10,000 position that is $16 vs $3 annually, a gap of $13 per year that compounds over a long holding period. On income, DFSD currently yields 4.18% against 1.07% for VTI.
Holdings Overlap
DFSD and VTI share 0 holdings out of 3908 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, DFSD or VTI?
DFSD has an expense ratio of 0.16% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, DFSD or VTI?
Over the past year DFSD returned +3.03% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), DFSD annualized +2.50% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, DFSD or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.7% for DFSD. Worst drawdown: DFSD -8.4% vs VTI -56.6%.
Should I hold both DFSD and VTI?
DFSD and VTI 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 DFSD and VTI?
DFSD and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3908 unique securities.
Which pays a higher dividend, DFSD or VTI?
DFSD yields 4.18% while VTI yields 1.07%, so DFSD currently pays the higher dividend yield.
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