DTF vs VYM
DTF vs VYM
DTF Tax-Free Income 2028 Term 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 558 holdings.
Side-by-Side Comparison
| Metric | DTF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.27% | 0.04% | |
| AUM | $84M | $79.0B | |
| Dividend Yield | 3.24% | 2.86% | |
| Holdings | 82 | 568 | |
| YTD Return | +3.30% | +15.80% | |
| 1Y Return | +5.53% | +26.12% | |
| 3Y Return (annualized) | +5.69% | +18.25% | |
| 5Y Return (annualized) | -1.52% | +12.51% | |
| Volatility (annualized) | 10.2% | 14.6% | |
| Max Drawdown | -48.4% | -58.8% | |
| Fund Family | Duff & Phelps Investment Management Co. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 29, 1991 | Nov 10, 2006 |
DTF vs VYM Performance
DTF Tax-Free Income 2028 Term Fund Inc (DTF) 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 DTF returned +5.53% while VYM returned +26.12%. Year to date, DTF is up 3.30% versus a gain of 15.80% for VYM.
Over three years, DTF compounded at +5.69% per year against +18.25% for VYM; over five years the annualized figures are -1.52% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.34%. 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 10.2% for DTF. 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 -48.4% for DTF 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DTF charges 2.27% per year while VYM charges 0.04%. On a $10,000 position that is $227 vs $4 annually, a gap of $223 per year that compounds over a long holding period. On income, DTF currently yields 3.24% against 2.86% for VYM.
Holdings Overlap
DTF and VYM share 0 holdings out of 582 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, DTF or VYM?
DTF has an expense ratio of 2.27% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $223 per year of difference.
Which performed better, DTF or VYM?
Over the past year DTF returned +5.53% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), DTF annualized -0.34% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, DTF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.2% for DTF. Worst drawdown: DTF -48.4% vs VYM -58.8%.
Should I hold both DTF and VYM?
DTF and VYM have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DTF and VYM?
DTF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, DTF or VYM?
DTF yields 3.24% while VYM yields 2.86%, so DTF currently pays the higher dividend yield.
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