DWM vs VYM
WisdomTree International Equity Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. DWM offers more diversification with 1,426 holdings.
Side-by-Side Comparison
| Metric | DWM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.04% | |
| AUM | $693M | $81.6B | |
| Dividend Yield | 2.69% | 2.24% | |
| Holdings | 1,426 | 616 | |
| YTD Return | +11.68% | +15.60% | |
| 1Y Return | +18.80% | +23.48% | |
| 3Y Return (annualized) | +19.64% | +19.07% | |
| 5Y Return (annualized) | +10.85% | +12.50% | |
| Volatility (annualized) | 16.9% | 14.6% | |
| Max Drawdown | -64.3% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Nov 10, 2006 |
DWM vs VYM Performance
WisdomTree International Equity Fund (DWM) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DWM returned +18.80% while VYM returned +23.48%. Year to date, DWM is up 11.68% versus a gain of 15.60% for VYM.
Over three years, DWM compounded at +19.64% per year against +19.07% for VYM; over five years the annualized figures are +10.85% and +12.50% respectively. Across the full 20-year window we track, VYM has the edge at +7.05% annualized vs +3.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DWM has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -64.3% for DWM 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DWM charges 0.48% per year while VYM charges 0.04%. On a $10,000 position that is $48 vs $4 annually, a gap of $44 per year that compounds over a long holding period. On income, DWM currently yields 2.69% against 2.24% for VYM.
Holdings Overlap
DWM and VYM share 4 holdings out of 1813 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DWM or VYM?
DWM has an expense ratio of 0.48% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, DWM or VYM?
Over the past year DWM returned +18.80% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), DWM annualized +3.15% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, DWM or VYM?
DWM has been the more volatile fund at 16.9% annualized versus 14.6% for VYM. Worst drawdown: DWM -64.3% vs VYM -58.8%.
Should I hold both DWM and VYM?
DWM and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DWM and VYM?
DWM and VYM share 4 common holdings with a 0.1% weight overlap. Combined, they hold 1813 unique securities.
Which pays a higher dividend, DWM or VYM?
DWM yields 2.69% while VYM yields 2.24%, so DWM currently pays the higher dividend yield.
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