DFAR vs VOO
Dimensional US Real Estate ETF vs Vanguard S&P 500 ETF
Which is better, DFAR or VOO?
VOO has been ahead.
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. VOO is less concentrated, with 37.9% of the fund in its ten largest positions against 50.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFAR | VOO |
|---|---|---|
| Expense Ratio | 0.19% | 0.03%Best |
| AUM | $8.2B | $1.0T |
| Dividend Yield | 3.59% | 1.06% |
| Holdings | 242 | 506 |
| YTD Return | +7.13% | +13.57%Best |
| 1Y Return | +6.57% | +17.55%Best |
| 3Y Return (annualized) | +10.06% | +22.46%Best |
| 5Y Return (annualized) | - | +13.28% |
| Volatility (annualized) | 18.3% | 15.5%Best |
| Max Drawdown | -32.3% | -22.1%Best |
| $10,000 over 4.6 years | $10,880 | $19,104Best |
| Top 10 Weight | 50.2% | 37.9%Best |
| Fund Family | Dimensional | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Feb 23, 2022 | Sep 7, 2010 |
Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 24, 2022 to Oct 14, 2026 (4.6 years).
DFAR vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.6 years both funds cover.
DFAR vs VOO Performance
Dimensional US Real Estate ETF (DFAR) is an ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year DFAR returned +6.57% while VOO returned +17.55%. Year to date, DFAR is up 7.13% versus a gain of 13.57% for VOO.
Over three years, DFAR compounded at +10.06% per year against +22.46% for VOO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAR has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.5% for VOO. 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 -32.3% for DFAR and -22.1% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAR charges 0.19% per year while VOO charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, DFAR currently yields 3.59% against 1.06% for VOO.
Holdings Overlap
72.5% of DFAR's money is in holdings VOO also owns. 1.7% of VOO's money is in holdings DFAR also owns.
Most of DFAR is already inside VOO. Owning both mostly buys the same companies twice.
27 positions in common, counted across the 120 positions we hold weights for in DFAR and 504 in VOO, against full books of 242 and 506.
What only one of them owns
Our book lists 472 positions for VOO that do not appear in our book for DFAR (98.0% of the fund), and 90 for DFAR that do not appear in VOO (27.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFAR | Weight in VOO | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 8.29% | 0.25% | 8.04% |
| PLDPrologis Inc | 6.96% | 0.20% | 6.76% |
| EQIXEquinix Inc. Real Estate Investment Trust | 5.61% | 0.16% | 5.45% |
| SPGSimon Property Group Inc | 4.77% | 0.10% | 4.67% |
| DLRDigital Realty Trust Inc. | 4.69% | 0.10% | 4.59% |
| AMTAmerican Tower Corporation | 4.59% | 0.12% | 4.47% |
| ORealty Income Corp. | 4.30% | 0.09% | 4.21% |
| PSAPublic Storage | 3.90% | 0.08% | 3.82% |
| EQRVivmark Residential | 3.59% | 0.07% | 3.52% |
| VTRVentas Inc . | 3.47% | 0.07% | 3.40% |
72.5% of DFAR is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAR or VOO?
DFAR has an expense ratio of 0.19% while VOO charges 0.03%. VOO is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, DFAR or VOO?
Over the past year DFAR returned +6.57% vs +17.55% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAR or VOO?
DFAR has been the more volatile fund at 18.3% annualized versus 15.5% for VOO. Worst drawdown: DFAR -32.3% vs VOO -22.1%.
Should I hold both DFAR and VOO?
DFAR and VOO have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DFAR and VOO?
72.5% of DFAR's money is in holdings VOO also owns. 1.7% of VOO's is in holdings DFAR also owns. They hold 27 positions in common, counted across the 120 positions we hold weights for in DFAR and 504 in VOO.
Which pays a higher dividend, DFAR or VOO?
DFAR yields 3.59% while VOO yields 1.06%, so DFAR currently pays the higher dividend yield.
Is VOO better than DFAR?
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. VOO is less concentrated, with 37.9% of the fund in its ten largest positions against 50.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.