DMO vs VTI
Western Asset Mortgage Opportunity Fund Inc. vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | DMO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.03% | |
| AUM | $128M | $666.9B | |
| Dividend Yield | 13.24% | 1.07% | |
| Holdings | 396 | 3,543 | |
| YTD Return | +3.66% | +14.82% | |
| 1Y Return | +0.78% | +22.43% | |
| 3Y Return (annualized) | +12.22% | +21.93% | |
| 5Y Return (annualized) | +3.51% | +12.34% | |
| Volatility (annualized) | 14.5% | 15.4% | |
| Max Drawdown | -60.2% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 2010 | May 24, 2001 |
DMO vs VTI Performance
Western Asset Mortgage Opportunity Fund Inc. (DMO) is a ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year DMO returned +0.78% while VTI returned +22.43%. Year to date, DMO is up 3.66% versus a gain of 14.82% for VTI.
Over three years, DMO compounded at +12.22% per year against +21.93% for VTI; over five years the annualized figures are +3.51% and +12.34% respectively. Across the full 17-year window we track, VTI has the edge at +8.16% annualized vs -0.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.5% for DMO. 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 -60.2% for DMO 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DMO charges 2.10% per year while VTI charges 0.03%. On a $10,000 position that is $210 vs $3 annually, a gap of $207 per year that compounds over a long holding period. On income, DMO currently yields 13.24% against 1.07% for VTI.
Holdings Overlap
DMO and VTI share 0 holdings out of 2812 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, DMO or VTI?
DMO has an expense ratio of 2.10% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $207 per year of difference.
Which performed better, DMO or VTI?
Over the past year DMO returned +0.78% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), DMO annualized -0.05% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, DMO or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 14.5% for DMO. Worst drawdown: DMO -60.2% vs VTI -56.6%.
Should I hold both DMO and VTI?
DMO and VTI have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DMO and VTI?
DMO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2812 unique securities.
Which pays a higher dividend, DMO or VTI?
DMO yields 13.24% while VTI yields 1.07%, so DMO currently pays the higher dividend yield.
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