DFE vs. VYMI

Last updated Jun 24, 2026

DFE (WisdomTree Europe SmallCap Dividend Fund) and VYMI (Vanguard International High Dividend Yield ETF) are both exchange-traded funds - DFE is a Europe Equities fund tracking the WisdomTree Europe SmallCap Dividend Index, while VYMI is a Dividend fund tracking the FTSE All-World ex US High Dividend Yield Index. Both are passively managed. Over the past 10 years, DFE returned 7.89%/yr vs 11.21%/yr for VYMI. Their correlation of 0.85 suggests significant overlap in exposure. DFE charges 0.58%/yr vs 0.07%/yr for VYMI.

Performance

DFE vs. VYMI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Europe SmallCap Dividend Fund (DFE) and Vanguard International High Dividend Yield ETF (VYMI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFE achieves a 2.33% return, which is significantly lower than VYMI's 11.38% return. Over the past 10 years, DFE has underperformed VYMI with an annualized return of 7.89%, while VYMI has yielded a comparatively higher 11.21% annualized return.

DFE

• 1D: -1.30%
• 1M: -3.73%
• YTD: 2.33%
• 6M: 3.37%
• 1Y: 10.63%
• 3Y*: 14.30%
• 5Y*: 4.37%
• 10Y*: 7.89%

VYMI

• 1D: -1.23%
• 1M: -0.28%
• YTD: 11.38%
• 6M: 11.17%
• 1Y: 30.40%
• 3Y*: 21.85%
• 5Y*: 12.40%
• 10Y*: 11.21%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DFE vs. VYMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFE WisdomTree Europe SmallCap Dividend Fund	2.33%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%
VYMI Vanguard International High Dividend Yield ETF	11.38%	38.05%	7.06%	17.07%	-7.02%	15.39%	-1.11%	18.43%	-12.65%	22.36%

Correlation

The correlation between DFE and VYMI is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Mar 2, 2016	0.85

The correlation between DFE and VYMI has been stable across timeframes, ranging from 0.83 to 0.86 - a consistent structural relationship.

DFE vs. VYMI - Sectors Allocation Comparison

Sectors	DFE	VYMI
Industrials	31.1%	6.2%
Consumer Cyclical	12.4%	6.4%
Financial Services	10.8%	40.7%
Basic Materials	8.3%	6.9%
Real Estate	7.0%	1.3%
Technology	6.8%	5.2%
Communication Services	5.8%	3.7%
Healthcare	5.6%	6.5%
Energy	4.6%	8.6%
Consumer Defensive	4.2%	6.7%
Utilities	3.4%	5.0%

Return for Risk

DFE vs. VYMI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DFE

DFE Risk / Return Rank: 22
DFE Sharpe Ratio Rank: 21
DFE Sortino Ratio Rank: 21
DFE Omega Ratio Rank: 20
DFE Calmar Ratio Rank: 21
DFE Martin Ratio Rank: 25

VYMI

VYMI Risk / Return Rank: 70
VYMI Sharpe Ratio Rank: 75
VYMI Sortino Ratio Rank: 73
VYMI Omega Ratio Rank: 74
VYMI Calmar Ratio Rank: 63
VYMI Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DFE vs. VYMI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe SmallCap Dividend Fund (DFE) and Vanguard International High Dividend Yield ETF (VYMI). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DFE	VYMI	Difference
Sharpe ratio: Return per unit of total volatility	0.71	2.30	-1.59
Sortino ratio: Return per unit of downside risk	1.10	3.14	-2.04
Omega ratio: Gain probability vs. loss probability	1.13	1.42	-0.28
Calmar ratio: Return relative to maximum drawdown	0.94	3.01	-2.08
Martin ratio: Return relative to average drawdown	3.14	11.81	-8.67

DFE vs. VYMI - Sharpe Ratio Comparison

The current DFE Sharpe Ratio is 0.71, which is lower than the VYMI Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of DFE and VYMI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DFE vs. VYMI - Drawdown Comparison

The maximum DFE drawdown since its inception was -69.38%, which is greater than VYMI's maximum drawdown of -40.00%. Use the drawdown chart below to compare losses from any high point for DFE and VYMI.

Drawdown Indicators

	DFE	VYMI	Difference
Max Drawdown Largest peak-to-trough decline	-69.38%	-40.00%	-29.38%
Max Drawdown (1Y) Largest decline over 1 year	-11.41%	-10.14%	-1.27%
Max Drawdown (3Y) Largest decline over 3 years	-16.41%	-12.84%	-3.57%
Max Drawdown (5Y) Largest decline over 5 years	-40.34%	-24.05%	-16.29%
Max Drawdown (10Y) Largest decline over 10 years	-49.66%	-40.00%	-9.66%
Current Drawdown Current decline from peak	-5.74%	-1.97%	-3.77%
Average Drawdown Average peak-to-trough decline	-17.69%	-6.28%	-11.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	2.58%	+0.82%

Volatility

DFE vs. VYMI - Volatility Comparison

WisdomTree Europe SmallCap Dividend Fund (DFE) has a higher volatility of 4.86% compared to Vanguard International High Dividend Yield ETF (VYMI) at 4.14%. This indicates that DFE's price experiences larger fluctuations and is considered to be riskier than VYMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFE	VYMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	4.14%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	12.62%	11.20%	+1.42%
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	13.27%	+1.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.07%	14.87%	+4.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.37%	16.61%	+2.76%

DFE vs. VYMI - Expense Ratio Comparison

DFE has a 0.58% expense ratio, which is higher than VYMI's 0.07% expense ratio.

Dividends

DFE vs. VYMI - Dividend Comparison

DFE's dividend yield for the trailing twelve months is around 4.00%, more than VYMI's 3.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	4.00%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
VYMI Vanguard International High Dividend Yield ETF	3.67%	3.68%	4.84%	4.58%	4.70%	4.30%	3.22%	4.20%	4.29%	3.21%	2.39%	0.00%

Frequently Asked Questions

Can I hold both DFE and VYMI in my portfolio?

DFE and VYMI have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFE or VYMI?

DFE has higher volatility (4.86%) compared to VYMI (4.14%). In terms of maximum drawdown, DFE dropped -69.38% vs VYMI's -40.00%.

Which ETF is better, DFE or VYMI?

On 10-year performance, VYMI leads with 11.21% vs 7.89% for DFE. On fees, VYMI is cheaper at 0.07% per year. On volatility, VYMI has been the lower-risk option at 4.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFE or VYMI?

Over the 10-year period, VYMI has performed better with a 11.21% return vs 7.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFE or VYMI?

VYMI is cheaper with a 0.07% expense ratio, compared with 0.58% for DFE.

Which ETF pays a higher dividend yield, DFE or VYMI?

DFE has the higher dividend yield at 4.00%, compared with 3.67% for VYMI.

What is the main difference between DFE and VYMI?

DFE is categorized as Europe Equities, while VYMI is Dividend. DFE tracks WisdomTree Europe SmallCap Dividend Index, while VYMI tracks FTSE All-World ex US High Dividend Yield Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.58% for DFE and 0.07% for VYMI.

Which has better risk-adjusted returns?

VYMI currently has the higher Sharpe Ratio (2.30 vs 0.71), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.