Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricDLYVYMWinner
Expense Ratio3.38%0.04%
AUM$735M$79.0B
Dividend Yield9.24%2.86%
Holdings490568
YTD Return+2.91%+15.80%
1Y Return+1.40%+26.12%
3Y Return (annualized)+8.35%+18.25%
5Y Return (annualized)+2.60%+12.51%
Volatility (annualized)13.3%14.6%
Max Drawdown-28.6%-58.8%
Fund FamilyDoubleLine FundsVanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 26, 2020Nov 10, 2006

DLY vs VYM Performance

DoubleLine Yield Opportunities Fund (DLY) is a ETF from DoubleLine Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DLY returned +1.40% while VYM returned +26.12%. Year to date, DLY is up 2.91% versus a gain of 15.80% for VYM.

Over three years, DLY compounded at +8.35% per year against +18.25% for VYM; over five years the annualized figures are +2.60% and +12.51% respectively. Across the full 6-year window we track, VYM has the edge at +7.07% annualized vs +2.27%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.3% for DLY. 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 -28.6% for DLY 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DLY charges 3.38% per year while VYM charges 0.04%. On a $10,000 position that is $338 vs $4 annually, a gap of $334 per year that compounds over a long holding period. On income, DLY currently yields 9.24% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

DLY and VYM share 0 holdings out of 559 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, DLY or VYM?

DLY has an expense ratio of 3.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $334 per year of difference.

Which performed better, DLY or VYM?

Over the past year DLY returned +1.40% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), DLY annualized +2.27% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, DLY or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 13.3% for DLY. Worst drawdown: DLY -28.6% vs VYM -58.8%.

Should I hold both DLY and VYM?

DLY and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DLY and VYM?

DLY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, DLY or VYM?

DLY yields 9.24% while VYM yields 2.86%, so DLY currently pays the higher dividend yield.

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