DON vs VYM
WisdomTree US MidCap Dividend Fund 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 | DON | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $4.1B | $81.6B | |
| Dividend Yield | 2.30% | 2.24% | |
| Holdings | 293 | 616 | |
| YTD Return | +12.20% | +14.84% | |
| 1Y Return | +12.00% | +20.88% | |
| 3Y Return (annualized) | +13.10% | +18.34% | |
| 5Y Return (annualized) | +8.81% | +12.04% | |
| Volatility (annualized) | 18.1% | 14.6% | |
| Max Drawdown | -64.4% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Nov 10, 2006 |
DON vs VYM Performance
WisdomTree US MidCap Dividend Fund (DON) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DON returned +12.00% while VYM returned +20.88%. Year to date, DON is up 12.20% versus a gain of 14.84% for VYM.
Over three years, DON compounded at +13.10% per year against +18.34% for VYM; over five years the annualized figures are +8.81% and +12.04% respectively. Across the full 20-year window we track, DON has the edge at +7.03% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DON has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -64.4% for DON 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DON charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, DON currently yields 2.30% against 2.24% for VYM.
Holdings Overlap
DON and VYM share 153 holdings out of 745 unique holdings combined, representing a 5.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DON or VYM?
DON has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, DON or VYM?
Over the past year DON returned +12.00% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), DON annualized +7.03% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, DON or VYM?
DON has been the more volatile fund at 18.1% annualized versus 14.6% for VYM. Worst drawdown: DON -64.4% vs VYM -58.8%.
Should I hold both DON and VYM?
DON and VYM have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between DON and VYM?
DON and VYM share 153 common holdings with a 5.4% weight overlap. Combined, they hold 745 unique securities.
Which pays a higher dividend, DON or VYM?
DON yields 2.30% while VYM yields 2.24%, so DON currently pays the higher dividend yield.
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