DGS vs VYM
WisdomTree Emerging Markets SmallCap Dividend Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. DGS offers more diversification with 1,009 holdings.
Side-by-Side Comparison
| Metric | DGS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $1.7B | $81.6B | |
| Dividend Yield | 3.93% | 2.24% | |
| Holdings | 1,009 | 616 | |
| YTD Return | +10.52% | +15.75% | |
| 1Y Return | +15.25% | +23.85% | |
| 3Y Return (annualized) | +13.58% | +19.14% | |
| 5Y Return (annualized) | +7.59% | +12.45% | |
| Volatility (annualized) | 20.3% | 14.6% | |
| Max Drawdown | -61.9% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 30, 2007 | Nov 10, 2006 |
DGS vs VYM Performance
WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DGS returned +15.25% while VYM returned +23.85%. Year to date, DGS is up 10.52% versus a gain of 15.75% for VYM.
Over three years, DGS compounded at +13.58% per year against +19.14% for VYM; over five years the annualized figures are +7.59% and +12.45% respectively. Across the full 19-year window we track, VYM has the edge at +7.06% annualized vs +2.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DGS has been the more volatile fund, with annualized monthly volatility of 20.3% 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 -61.9% for DGS 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DGS charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, DGS currently yields 3.93% against 2.24% for VYM.
Holdings Overlap
DGS and VYM share 0 holdings out of 1558 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, DGS or VYM?
DGS has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, DGS or VYM?
Over the past year DGS returned +15.25% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), DGS annualized +2.18% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, DGS or VYM?
DGS has been the more volatile fund at 20.3% annualized versus 14.6% for VYM. Worst drawdown: DGS -61.9% vs VYM -58.8%.
Should I hold both DGS and VYM?
DGS and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DGS and VYM?
DGS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1558 unique securities.
Which pays a higher dividend, DGS or VYM?
DGS yields 3.93% while VYM yields 2.24%, so DGS currently pays the higher dividend yield.
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