DWAT vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricDWATVYMWinner
Expense Ratio1.83%0.04%
AUM$2M$79.0B
Dividend Yield10.89%2.86%
Holdings12568
YTD Return-4.04%+16.16%
1Y Return+0.06%+26.05%
3Y Return (annualized)+0.81%+18.43%
5Y Return (annualized)+8.05%+12.21%
Volatility (annualized)12.8%14.6%
Max Drawdown-34.7%-58.8%
Fund FamilyArrow Investment TrustVanguard (US)
CategoryAllocation/BalancedEquity
InceptionOct 1, 2014Nov 10, 2006

DWAT vs VYM Performance

Arrow DWA Tactical ETF (DWAT) is a ETF from Arrow Investment Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DWAT returned +0.06% while VYM returned +26.05%. Year to date, DWAT is down 4.04% versus a gain of 16.16% for VYM.

Over three years, DWAT compounded at +0.81% per year against +18.43% for VYM; over five years the annualized figures are +8.05% and +12.21% respectively. Across the full 11-year window we track, VYM has the edge at +7.09% annualized vs +4.84%. 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 12.8% for DWAT. 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 -34.7% for DWAT 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DWAT charges 1.83% per year while VYM charges 0.04%. On a $10,000 position that is $183 vs $4 annually, a gap of $179 per year that compounds over a long holding period. On income, DWAT currently yields 10.89% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, DWAT or VYM?

DWAT has an expense ratio of 1.83% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $179 per year of difference.

Which performed better, DWAT or VYM?

Over the past year DWAT returned +0.06% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), DWAT annualized +4.84% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, DWAT or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.8% for DWAT. Worst drawdown: DWAT -34.7% vs VYM -58.8%.

Should I hold both DWAT and VYM?

DWAT and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, DWAT or VYM?

DWAT yields 10.89% while VYM yields 2.86%, so DWAT currently pays the higher dividend yield.

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