DWM vs. VFQY

Last updated Jun 24, 2026

DWM (WisdomTree International Equity Fund) and VFQY (Vanguard U.S. Quality Factor ETF) are both exchange-traded funds - DWM is a Foreign Large Cap Equities fund tracking the WisdomTree International Equity Index, while VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard. DWM is passively managed, while VFQY is actively managed. Over the past 5 years, DWM returned 9.83%/yr vs 8.39%/yr for VFQY. A 0.73 correlation means they provide meaningful diversification when combined. DWM charges 0.48%/yr vs 0.13%/yr for VFQY.

Performance

DWM vs. VFQY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree International Equity Fund (DWM) and Vanguard U.S. Quality Factor ETF (VFQY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DWM achieves a 7.25% return, which is significantly lower than VFQY's 8.55% return.

DWM

• 1D: -1.33%
• 1M: -0.50%
• YTD: 7.25%
• 6M: 7.15%
• 1Y: 20.82%
• 3Y*: 17.76%
• 5Y*: 9.83%
• 10Y*: 9.22%

VFQY

• 1D: -0.88%
• 1M: 1.91%
• YTD: 8.55%
• 6M: 6.89%
• 1Y: 19.65%
• 3Y*: 16.09%
• 5Y*: 8.39%
• 10Y*: —

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

DWM vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
DWM WisdomTree International Equity Fund	7.25%	34.83%	4.15%	16.63%	-9.04%	10.76%	-2.33%	18.98%	-13.79%
VFQY Vanguard U.S. Quality Factor ETF	8.55%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%

Correlation

The correlation between DWM and VFQY is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.73

The correlation between DWM and VFQY has been stable across timeframes, ranging from 0.67 to 0.73 - a consistent structural relationship.

DWM vs. VFQY - Sectors Allocation Comparison

Sectors	DWM	VFQY
Industrials	18.8%	16.8%
Financial Services	18.1%	18.9%
Consumer Cyclical	9.7%	13.3%
Healthcare	8.0%	8.9%
Technology	7.5%	25.8%
Consumer Defensive	7.1%	9.2%
Basic Materials	5.5%	2.2%
Utilities	5.2%	-
Communication Services	4.8%	2.8%
Energy	3.8%	2.2%
Real Estate	2.8%	-

Return for Risk

DWM vs. VFQY — Risk / Return Rank

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

DWM

DWM Risk / Return Rank: 43
DWM Sharpe Ratio Rank: 43
DWM Sortino Ratio Rank: 44
DWM Omega Ratio Rank: 43
DWM Calmar Ratio Rank: 40
DWM Martin Ratio Rank: 44

VFQY

VFQY Risk / Return Rank: 44
VFQY Sharpe Ratio Rank: 43
VFQY Sortino Ratio Rank: 44
VFQY Omega Ratio Rank: 40
VFQY Calmar Ratio Rank: 45
VFQY Martin Ratio Rank: 49

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.

DWM vs. VFQY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree International Equity Fund (DWM) and Vanguard U.S. Quality Factor ETF (VFQY). 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.

	DWM	VFQY	Difference
Sharpe ratio: Return per unit of total volatility	1.44	1.46	-0.01
Sortino ratio: Return per unit of downside risk	2.10	2.12	-0.02
Omega ratio: Gain probability vs. loss probability	1.27	1.25	+0.02
Calmar ratio: Return relative to maximum drawdown	1.91	2.16	-0.25
Martin ratio: Return relative to average drawdown	6.91	8.04	-1.13

DWM vs. VFQY - Sharpe Ratio Comparison

The current DWM Sharpe Ratio is 1.44, which is comparable to the VFQY Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of DWM and VFQY, 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

DWM vs. VFQY - Drawdown Comparison

The maximum DWM drawdown since its inception was -62.10%, which is greater than VFQY's maximum drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for DWM and VFQY.

Drawdown Indicators

	DWM	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-62.10%	-37.41%	-24.69%
Max Drawdown (1Y) Largest decline over 1 year	-10.93%	-9.12%	-1.81%
Max Drawdown (3Y) Largest decline over 3 years	-12.69%	-20.67%	+7.98%
Max Drawdown (5Y) Largest decline over 5 years	-25.64%	-25.93%	+0.29%
Max Drawdown (10Y) Largest decline over 10 years	-37.82%	—	—
Current Drawdown Current decline from peak	-2.94%	-1.29%	-1.65%
Average Drawdown Average peak-to-trough decline	-13.47%	-6.65%	-6.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	2.45%	+0.57%

Volatility

DWM vs. VFQY - Volatility Comparison

WisdomTree International Equity Fund (DWM) has a higher volatility of 4.25% compared to Vanguard U.S. Quality Factor ETF (VFQY) at 3.79%. This indicates that DWM's price experiences larger fluctuations and is considered to be riskier than VFQY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DWM	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.25%	3.79%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	12.32%	9.84%	+2.48%
Volatility (1Y) Calculated over the trailing 1-year period	14.54%	13.61%	+0.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.33%	18.36%	-3.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.32%	20.84%	-4.52%

DWM vs. VFQY - Expense Ratio Comparison

DWM has a 0.48% expense ratio, which is higher than VFQY's 0.13% expense ratio.

Dividends

DWM vs. VFQY - Dividend Comparison

DWM's dividend yield for the trailing twelve months is around 2.77%, more than VFQY's 0.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DWM WisdomTree International Equity Fund	2.77%	3.06%	3.86%	4.15%	4.36%	3.64%	2.74%	3.46%	3.86%	2.99%	3.43%	3.55%
VFQY Vanguard U.S. Quality Factor ETF	0.82%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DWM and VFQY in my portfolio?

DWM and VFQY have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DWM or VFQY?

DWM has higher volatility (4.25%) compared to VFQY (3.79%). In terms of maximum drawdown, DWM dropped -62.10% vs VFQY's -37.41%.

Which ETF is better, DWM or VFQY?

On 5-year performance, DWM leads with 9.83% vs 8.39% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 3.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DWM or VFQY?

Over the 5-year period, DWM has performed better with a 9.83% return vs 8.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DWM or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.48% for DWM.

Which ETF pays a higher dividend yield, DWM or VFQY?

DWM has the higher dividend yield at 2.77%, compared with 0.82% for VFQY.

What is the main difference between DWM and VFQY?

DWM is categorized as Foreign Large Cap Equities, while VFQY is Mid Cap Blend Equities. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.48% for DWM and 0.13% for VFQY.

Which has better risk-adjusted returns?

VFQY currently has the higher Sharpe Ratio (1.46 vs 1.44), 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.