DFNM vs VTEI
Dimensional National Municipal Bond ETF vs Vanguard Intermediate-Term Tax-Exempt Bond ETF
Which is better, DFNM or VTEI?
Nearly the same fund. VTEI costs less.
VTEI has a lower expense ratio. DFNM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.98.
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 | DFNM | VTEI |
|---|---|---|
| Expense Ratio | 0.17% | 0.08%Best |
| AUM | $2.2B | $1.7B |
| Dividend Yield | 3.08% | 3.27% |
| Holdings | 2,388 | 6,025 |
| YTD Return | -1.04%Best | -4.07% |
| 1Y Return | -0.15%Best | -3.08% |
| 3Y Return (annualized) | +3.03% | - |
| 5Y Return (annualized) | +0.86% | - |
| Volatility (annualized) | 3.1%Best | 4.0% |
| Max Drawdown | -4.6%Best | -7.8% |
| $10,000 over 2.7 years | $10,455Best | $10,193 |
| Fund Family | Dimensional | Vanguard (US) |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Nov 15, 2021 | Jan 26, 2024 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.7 years row, are measured over the window both funds cover: Jan 30, 2024 to Oct 15, 2026 (2.7 years).
DFNM vs VTEI 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 2.7 years both funds cover.
DFNM vs VTEI Performance
Dimensional National Municipal Bond ETF (DFNM) is an ETF from Dimensional and Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is an ETF from Vanguard (US). Over the past year DFNM returned -0.15% while VTEI returned -3.08%. Year to date, DFNM is down 1.04% versus a loss of 4.07% for VTEI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTEI has been the more volatile fund, with annualized monthly volatility of 4.0% compared with 3.1% for DFNM. 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 -4.6% for DFNM and -7.8% for VTEI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DFNM charges 0.17% per year while VTEI charges 0.08%. On a $10,000 position that is $17 vs $8 annually, a gap of $9 per year that compounds over a long holding period. On income, DFNM currently yields 3.08% against 3.27% for VTEI.
Holdings Overlap
We hold position weights for 163 holdings in DFNM and 1,702 in VTEI, totalling 13.6% and 22.6% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 98 positions appear in both.
98 positions in common, counted across the 163 positions we hold weights for in DFNM and 1,702 in VTEI, against full books of 2,388 and 6,025.
Top Shared Holdings
| Stock | Weight in DFNM | Weight in VTEI | Difference |
|---|---|---|---|
| MA MAS 5 08/01/2041Commonwealth Of Massachusetts 5 08/01/2041 | 0.40% | 0.00% | 0.40% |
| NY NYSHGR 5 02/15/20New York State Dormitory Authority 5 02/15/2041 | 0.38% | 0.00% | 0.38% |
| AZ SALAGR 5 05/01/20Salt River Project Agricultural Improvement & Power District 5 05/01/2039 | 0.22% | 0.05% | 0.17% |
| NY NYC 5 12/01/2039New York- 5.% 12/01/39 | 0.25% | 0.00% | 0.25% |
| GA GAS 4 01/01/2027Georgia S 4.% 01/01/27 | 0.24% | 0.01% | 0.23% |
| WA WAS 5 08/01/2038Wa St-Ser R-2023A-Ref 01/08/2038 | 0.16% | 0.09% | 0.07% |
| CA CAS 4 09/01/2035Californi 4.% 09/01/35 | 0.21% | 0.03% | 0.18% |
| WI WIS 5 05/01/2038State Of Wisconsin 5 05/01/2038 | 0.15% | 0.08% | 0.07% |
| TN MET 4 01/01/2044Met Govt Nashville Davidson Met 01/44 Fixed 4 | 0.20% | 0.01% | 0.19% |
| TX HOU 5 03/01/2043City Of Houston Tx 5.0% 03/01/2043 | 0.21% | 0.00% | 0.21% |
You are not choosing between two funds in isolation.
Whichever of DFNM and VTEI 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, DFNM or VTEI?
DFNM has an expense ratio of 0.17% while VTEI charges 0.08%. VTEI is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, DFNM or VTEI?
Over the past year DFNM returned -0.15% vs -3.08% for VTEI, so DFNM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFNM or VTEI?
VTEI has been the more volatile fund at 4.0% annualized versus 3.1% for DFNM. Worst drawdown: DFNM -4.6% vs VTEI -7.8%.
Should I hold both DFNM and VTEI?
DFNM and VTEI have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, DFNM or VTEI?
DFNM yields 3.08% while VTEI yields 3.27%, so VTEI currently pays the higher dividend yield.
Is VTEI better than DFNM?
VTEI has a lower expense ratio. DFNM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.98. Which one suits a particular account depends on what it is for. This is information, not a recommendation.