DNP vs VYM
DNP Select Income Fund Inc. vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | DNP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.77% | 0.04% | |
| AUM | $3.7B | $81.6B | |
| Dividend Yield | 8.00% | 2.24% | |
| Holdings | 131 | 616 | |
| YTD Return | +14.89% | +15.84% | |
| 1Y Return | +19.99% | +23.95% | |
| 3Y Return (annualized) | +11.56% | +19.02% | |
| 5Y Return (annualized) | +8.29% | +12.19% | |
| Volatility (annualized) | 14.7% | 14.6% | |
| Max Drawdown | -54.8% | -58.8% | |
| Fund Family | Duff & Phelps Investment Management Co. | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 21, 1987 | Nov 10, 2006 |
DNP vs VYM Performance
DNP Select Income Fund Inc. (DNP) is a ETF from Duff & Phelps Investment Management Co. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DNP returned +19.99% while VYM returned +23.95%. Year to date, DNP is up 14.89% versus a gain of 15.84% for VYM.
Over three years, DNP compounded at +11.56% per year against +19.02% for VYM; over five years the annualized figures are +8.29% and +12.19% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +2.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DNP 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 -54.8% for DNP 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DNP charges 1.77% per year while VYM charges 0.04%. On a $10,000 position that is $177 vs $4 annually, a gap of $173 per year that compounds over a long holding period. On income, DNP currently yields 8.00% against 2.24% for VYM.
Holdings Overlap
DNP and VYM share 36 holdings out of 689 unique holdings combined, representing a 7.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DNP or VYM?
DNP has an expense ratio of 1.77% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $173 per year of difference.
Which performed better, DNP or VYM?
Over the past year DNP returned +19.99% vs +23.95% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), DNP annualized +2.04% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, DNP or VYM?
DNP has been the more volatile fund at 14.7% annualized versus 14.6% for VYM. Worst drawdown: DNP -54.8% vs VYM -58.8%.
Should I hold both DNP and VYM?
DNP and VYM have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DNP and VYM?
DNP and VYM share 36 common holdings with a 7.2% weight overlap. Combined, they hold 689 unique securities.
Which pays a higher dividend, DNP or VYM?
DNP yields 8.00% while VYM yields 2.24%, so DNP currently pays the higher dividend yield.
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