DFAR vs. VNQ
Compare and contrast key facts about Dimensional US Real Estate ETF (DFAR) and Vanguard Real Estate ETF (VNQ).
DFAR and VNQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DFAR is an actively managed fund by Dimensional Fund Advisors. It was launched on Feb 23, 2022. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US REIT Index. It was launched on Sep 23, 2004.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: DFAR or VNQ.
Key characteristics
| DFAR | VNQ | |
|---|---|---|
| YTD Return | 14.96% | 13.99% |
| 1Y Return | 26.16% | 25.37% |
| Sharpe Ratio | 1.55 | 1.49 |
| Daily Std Dev | 18.43% | 18.61% |
| Max Drawdown | -32.27% | -73.07% |
| Current Drawdown | -2.82% | -5.97% |
Correlation
The correlation between DFAR and VNQ is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
DFAR vs. VNQ - Performance Comparison
In the year-to-date period, DFAR achieves a 14.96% return, which is significantly higher than VNQ's 13.99% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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DFAR vs. VNQ - Expense Ratio Comparison
DFAR has a 0.19% expense ratio, which is higher than VNQ's 0.12% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
DFAR vs. VNQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional US Real Estate ETF (DFAR) and Vanguard Real Estate ETF (VNQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
DFAR vs. VNQ - Dividend Comparison
DFAR's dividend yield for the trailing twelve months is around 2.57%, less than VNQ's 3.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFAR Dimensional US Real Estate ETF | 2.57% | 3.06% | 1.69% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VNQ Vanguard Real Estate ETF | 3.61% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
Drawdowns
DFAR vs. VNQ - Drawdown Comparison
The maximum DFAR drawdown since its inception was -32.27%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for DFAR and VNQ. For additional features, visit the drawdowns tool.
Volatility
DFAR vs. VNQ - Volatility Comparison
The current volatility for Dimensional US Real Estate ETF (DFAR) is 2.84%, while Vanguard Real Estate ETF (VNQ) has a volatility of 3.09%. This indicates that DFAR experiences smaller price fluctuations and is considered to be less risky than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.