DFAT vs VYM
Dimensional US Targeted Value ETF vs Vanguard High Dividend Yield ETF
Which is better, DFAT or VYM?
Small Cap Value against Large Cap Value.
VYM has a lower expense ratio. DFAT led over 1Y, VYM over 3Y, 5Y and the full window.
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 | DFAT | VYM |
|---|---|---|
| Expense Ratio | 0.28% | 0.04%Best |
| AUM | $30.6B | $78.9B |
| Dividend Yield | 1.40% | 2.37% |
| Holdings | 1,234 | 608 |
| YTD Return | +13.08%Best | +11.83% |
| 1Y Return | +18.14%Best | +15.96% |
| 3Y Return (annualized) | +16.01% | +18.60%Best |
| 5Y Return (annualized) | +9.45% | +11.51%Best |
| Volatility (annualized) | 19.8% | 13.6%Best |
| Max Drawdown | -26.1% | -15.8%Best |
| $10,000 over 5 years | $15,706 | $17,241Best |
| Fund Family | Dimensional | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Value |
| Inception | Dec 11, 1998 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 14, 2021 to Oct 14, 2026 (5.3 years).
DFAT vs VYM 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 5.3 years both funds cover.
DFAT vs VYM Performance
Dimensional US Targeted Value ETF (DFAT) is an ETF from Dimensional and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year DFAT returned +18.14% while VYM returned +15.96%. Year to date, DFAT is up 13.08% versus a gain of 11.83% for VYM.
Over three years, DFAT compounded at +16.01% per year against +18.60% for VYM; over five years the annualized figures are +9.45% and +11.51% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAT has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 13.6% 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 -26.1% for DFAT and -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAT charges 0.28% per year while VYM charges 0.04%. On a $10,000 position that is $28 vs $4 annually, a gap of $24 per year that compounds over a long holding period. On income, DFAT currently yields 1.40% against 2.37% for VYM.
Holdings Overlap
At least 0.5% of VYM's money is in holdings DFAT also owns.
Stated as a floor: for DFAT, our book for it covers 72.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
3 positions in common, counted across the 1,141 positions we hold weights for in DFAT and 602 in VYM, against full books of 1,234 and 608.
You are not choosing between two funds in isolation.
Whichever of DFAT and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAT or VYM?
DFAT has an expense ratio of 0.28% while VYM charges 0.04%. VYM is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, DFAT or VYM?
Over the past year DFAT returned +18.14% vs +15.96% for VYM, so DFAT leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAT or VYM?
DFAT has been the more volatile fund at 19.8% annualized versus 13.6% for VYM. Worst drawdown: DFAT -26.1% vs VYM -15.8%.
Should I hold both DFAT and VYM?
DFAT and VYM have a monthly-return correlation of 0.88, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, DFAT or VYM?
DFAT yields 1.40% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than DFAT?
VYM has a lower expense ratio. DFAT led over 1Y, VYM over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.