DFSE vs VYM
Dimensional Emerging Markets Sustainability Core 1 ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. DFSE offers more diversification with 1859 holdings.
Side-by-Side Comparison
| Metric | DFSE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.41% | 0.04% | |
| AUM | $582M | $79.0B | |
| Dividend Yield | 1.89% | 2.86% | |
| Holdings | 4,274 | 568 | |
| YTD Return | +13.28% | +16.10% | |
| 1Y Return | +25.35% | +25.99% | |
| 3Y Return (annualized) | +18.68% | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 15.0% | 14.6% | |
| Max Drawdown | -19.8% | -58.8% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2022 | Nov 10, 2006 |
DFSE vs VYM Performance
Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is a ETF from Dimensional and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DFSE returned +25.35% while VYM returned +25.99%. Year to date, DFSE is up 13.28% versus a gain of 16.10% for VYM.
Over three years, DFSE compounded at +18.68% per year against +18.29% for VYM. Across the full 4-year window we track, DFSE has the edge at +20.68% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFSE has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -19.8% for DFSE 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFSE charges 0.41% per year while VYM charges 0.04%. On a $10,000 position that is $41 vs $4 annually, a gap of $37 per year that compounds over a long holding period. On income, DFSE currently yields 1.89% against 2.86% for VYM.
Holdings Overlap
DFSE and VYM share 400 holdings out of 2017 unique holdings combined, representing a 32.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFSE or VYM?
DFSE has an expense ratio of 0.41% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, DFSE or VYM?
Over the past year DFSE returned +25.35% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), DFSE annualized +20.68% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, DFSE or VYM?
DFSE has been the more volatile fund at 15.0% annualized versus 14.6% for VYM. Worst drawdown: DFSE -19.8% vs VYM -58.8%.
Should I hold both DFSE and VYM?
DFSE and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFSE and VYM?
DFSE and VYM share 400 common holdings with a 32.6% weight overlap. Combined, they hold 2017 unique securities.
Which pays a higher dividend, DFSE or VYM?
DFSE yields 1.89% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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