DXJ vs VYM
WisdomTree Japan Hedged Equity Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. DXJ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | DXJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.04% | |
| AUM | $7.4B | $81.6B | |
| Dividend Yield | 0.96% | 2.24% | |
| Holdings | 430 | 616 | |
| YTD Return | +21.92% | +14.66% | |
| 1Y Return | +41.06% | +22.16% | |
| 3Y Return (annualized) | +31.70% | +18.72% | |
| 5Y Return (annualized) | +27.98% | +12.18% | |
| Volatility (annualized) | 17.1% | 14.6% | |
| Max Drawdown | -51.1% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Nov 10, 2006 |
DXJ vs VYM Performance
WisdomTree Japan Hedged Equity Fund (DXJ) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DXJ returned +41.06% while VYM returned +22.16%. Year to date, DXJ is up 21.92% versus a gain of 14.66% for VYM.
Over three years, DXJ compounded at +31.70% per year against +18.72% for VYM; over five years the annualized figures are +27.98% and +12.18% respectively. Across the full 20-year window we track, DXJ has the edge at +7.20% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DXJ has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -51.1% for DXJ 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DXJ 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, DXJ currently yields 0.96% against 2.24% for VYM.
Holdings Overlap
DXJ and VYM share 0 holdings out of 1017 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, DXJ or VYM?
DXJ 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, DXJ or VYM?
Over the past year DXJ returned +41.06% vs +22.16% for VYM, so DXJ leads on 1-year performance. Over the longest common window we track (20 years), DXJ annualized +7.20% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, DXJ or VYM?
DXJ has been the more volatile fund at 17.1% annualized versus 14.6% for VYM. Worst drawdown: DXJ -51.1% vs VYM -58.8%.
Should I hold both DXJ and VYM?
DXJ and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DXJ and VYM?
DXJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1017 unique securities.
Which pays a higher dividend, DXJ or VYM?
DXJ yields 0.96% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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