DMCY vs VYM
Democracy International Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. DMCY delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | DMCY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $5M | $81.6B | |
| Dividend Yield | 2.94% | 2.24% | |
| Holdings | 5 | 616 | |
| YTD Return | +4.90% | +15.60% | |
| 1Y Return | +26.32% | +23.48% | |
| 3Y Return (annualized) | +14.13% | +19.07% | |
| 5Y Return (annualized) | - | +12.50% | |
| Volatility (annualized) | 14.7% | 14.6% | |
| Max Drawdown | -28.6% | -58.8% | |
| Fund Family | Democracy Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2021 | Nov 10, 2006 |
DMCY vs VYM Performance
Democracy International Fund (DMCY) is a ETF from Democracy Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DMCY returned +26.32% while VYM returned +23.48%. Year to date, DMCY is up 4.90% versus a gain of 15.60% for VYM.
Over three years, DMCY compounded at +14.13% per year against +19.07% for VYM. Across the full 5-year window we track, DMCY has the edge at +7.91% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DMCY has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -28.6% for DMCY 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DMCY charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, DMCY currently yields 2.94% against 2.24% for VYM.
Holdings Overlap
DMCY and VYM share 1 holdings out of 800 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DMCY | Weight in VYM | Difference |
|---|---|---|---|
| NXPI | 0.41% | 0.29% | 0.12% |
Frequently Asked Questions
Which is cheaper, DMCY or VYM?
DMCY has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, DMCY or VYM?
Over the past year DMCY returned +26.32% vs +23.48% for VYM, so DMCY leads on 1-year performance. Over the longest common window we track (5 years), DMCY annualized +7.91% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, DMCY or VYM?
DMCY has been the more volatile fund at 14.7% annualized versus 14.6% for VYM. Worst drawdown: DMCY -28.6% vs VYM -58.8%.
Should I hold both DMCY and VYM?
DMCY and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DMCY and VYM?
DMCY and VYM share 1 common holdings with a 0.3% weight overlap. Combined, they hold 800 unique securities.
Which pays a higher dividend, DMCY or VYM?
DMCY yields 2.94% while VYM yields 2.24%, so DMCY currently pays the higher dividend yield.
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