RDFI vs VYM
Rareview Dynamic Fixed Income ETF 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 | RDFI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 4.23% | 0.04% | |
| AUM | $84M | $79.0B | |
| Dividend Yield | 8.16% | 2.86% | |
| Holdings | 41 | 568 | |
| YTD Return | -2.22% | +15.80% | |
| 1Y Return | +1.13% | +26.12% | |
| 3Y Return (annualized) | +8.30% | +18.25% | |
| 5Y Return (annualized) | +1.77% | +12.51% | |
| Volatility (annualized) | 10.8% | 14.6% | |
| Max Drawdown | -23.7% | -58.8% | |
| Fund Family | Rareview Capital | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 21, 2020 | Nov 10, 2006 |
RDFI vs VYM Performance
Rareview Dynamic Fixed Income ETF (RDFI) is a ETF from Rareview Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RDFI returned +1.13% while VYM returned +26.12%. Year to date, RDFI is down 2.22% versus a gain of 15.80% for VYM.
Over three years, RDFI compounded at +8.30% per year against +18.25% for VYM; over five years the annualized figures are +1.77% and +12.51% respectively. Across the full 6-year window we track, VYM has the edge at +7.07% annualized vs +5.20%. 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 10.8% for RDFI. 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 -23.7% for RDFI 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RDFI charges 4.23% per year while VYM charges 0.04%. On a $10,000 position that is $423 vs $4 annually, a gap of $419 per year that compounds over a long holding period. On income, RDFI currently yields 8.16% against 2.86% for VYM.
Holdings Overlap
RDFI and VYM share 0 holdings out of 591 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, RDFI or VYM?
RDFI has an expense ratio of 4.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $419 per year of difference.
Which performed better, RDFI or VYM?
Over the past year RDFI returned +1.13% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), RDFI annualized +5.20% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, RDFI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.8% for RDFI. Worst drawdown: RDFI -23.7% vs VYM -58.8%.
Should I hold both RDFI and VYM?
RDFI and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RDFI and VYM?
RDFI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 591 unique securities.
Which pays a higher dividend, RDFI or VYM?
RDFI yields 8.16% while VYM yields 2.86%, so RDFI currently pays the higher dividend yield.
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