VFQY vs. DWM

Last updated Aug 4, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and DWM (WisdomTree International Equity Fund) are both exchange-traded funds - VFQY is a Quality Factor fund actively managed by Vanguard, while DWM is a Foreign Large Cap Equities fund tracking the WisdomTree International Equity Index. VFQY is actively managed, while DWM is passively managed. Over the past 5 years, VFQY returned 9.15%/yr vs 10.52%/yr for DWM. Their 0.73 correlation means they have sometimes moved together and sometimes differently. VFQY charges 0.13%/yr vs 0.48%/yr for DWM.

Performance

VFQY vs. DWM - Performance Comparison

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

Returns By Period

In the year-to-date period, VFQY achieves a 14.20% return, which is significantly higher than DWM's 11.46% return.

VFQY

• 1D: 1.05%
• 1M: 2.21%
• 6M: 10.27%
• YTD: 14.20%
• 1Y: 23.29%
• 3Y*: 15.72%
• 5Y*: 9.15%
• 10Y*: —
• ALL TIME*: 11.62%

DWM

• 1D: 0.35%
• 1M: 1.65%
• 6M: 5.88%
• YTD: 11.46%
• 1Y: 23.13%
• 3Y*: 18.36%
• 5Y*: 10.52%
• 10Y*: 8.81%
• ALL TIME*: 5.76%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DWM WisdomTree International Equity Fund	$999.61K	$930.68K	$834.22K
VFQY Vanguard U.S. Quality Factor ETF	$948.51K	$988.82K	$1.06M

VFQY vs. DWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFQY Vanguard U.S. Quality Factor ETF	14.20%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%
DWM WisdomTree International Equity Fund	11.46%	34.83%	4.15%	16.63%	-9.04%	10.76%	-2.33%	18.98%	-13.79%

Correlation

The correlation between VFQY and DWM is 0.64, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.64
Correlation (3Y) Balances recent behavior with more history.	0.66
Correlation (5Y) Shows whether the relationship held over a longer period.	0.71
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.73

The correlation between VFQY and DWM has been stable across timeframes, ranging from 0.64 to 0.73 - a consistent structural relationship.

VFQY vs. DWM - Sectors Allocation Comparison

Sectors	VFQY	DWM
Technology	25.8%	9.3%
Financial Services	18.9%	21.7%
Industrials	16.8%	20.9%
Consumer Cyclical	13.3%	10.3%
Consumer Defensive	9.2%	7.5%
Healthcare	8.9%	8.5%
Communication Services	2.8%	5.0%
Basic Materials	2.2%	5.2%
Energy	2.2%	3.4%
Real Estate	-	2.9%
Utilities	-	5.3%

Return for Risk

VFQY vs. DWM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VFQY

VFQY Risk / Return Rank: 74
VFQY Sharpe Ratio Rank: 75
VFQY Sortino Ratio Rank: 76
VFQY Omega Ratio Rank: 70
VFQY Calmar Ratio Rank: 71
VFQY Martin Ratio Rank: 75

DWM

DWM Risk / Return Rank: 64
DWM Sharpe Ratio Rank: 66
DWM Sortino Ratio Rank: 68
DWM Omega Ratio Rank: 67
DWM Calmar Ratio Rank: 57
DWM Martin Ratio Rank: 61

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VFQY vs. DWM - Risk-Adjusted Trends Comparison

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

	VFQY	DWM	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.61	+0.14
Sortino ratio: Return per unit of downside risk	2.53	2.32	+0.21
Omega ratio: Gain probability vs. loss probability	1.30	1.30	0.00
Calmar ratio: Return relative to maximum drawdown	2.57	2.13	+0.44
Martin ratio: Return relative to average drawdown	9.69	7.68	+2.01

VFQY vs. DWM - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.75, which is comparable to the DWM Sharpe Ratio of 1.61. The chart below compares the historical Sharpe Ratios of VFQY and DWM, 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

VFQY vs. DWM - Drawdown Comparison

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

Drawdown Indicators

	VFQY	DWM	Difference
Max Drawdown Largest peak-to-trough decline	-37.41%	-62.10%	+24.69%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-10.93%	+1.81%
Max Drawdown (3Y) Largest decline over 3 years	-20.67%	-12.69%	-7.98%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-25.64%	-0.29%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.82%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.57%	-13.40%	+6.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.41%	3.02%	-0.61%

Volatility

VFQY vs. DWM - Volatility Comparison

The current volatility for Vanguard U.S. Quality Factor ETF (VFQY) is 3.12%, while WisdomTree International Equity Fund (DWM) has a volatility of 3.81%. This indicates that VFQY experiences smaller price fluctuations and is considered to be less risky than DWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFQY	DWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.12%	3.81%	-0.69%
Volatility (6M) Calculated over the trailing 6-month period	9.58%	12.44%	-2.86%
Volatility (1Y) Calculated over the trailing 1-year period	13.37%	14.46%	-1.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.29%	15.34%	+2.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.73%	16.26%	+4.47%

VFQY vs. DWM - Expense Ratio Comparison

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

Dividends

VFQY vs. DWM - Dividend Comparison

VFQY's dividend yield for the trailing twelve months is around 1.03%, less than DWM's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DWM WisdomTree International Equity Fund	2.69%	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	1.03%	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 VFQY and DWM in my portfolio?

VFQY and DWM have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFQY or DWM?

DWM has higher volatility (3.81%) compared to VFQY (3.12%). In terms of maximum drawdown, VFQY dropped -37.41% vs DWM's -62.10%.

Which ETF is better, VFQY or DWM?

On 5-year performance, DWM leads with 10.52% vs 9.15% for VFQY. On fees, VFQY is cheaper at 0.13% per year. On volatility, VFQY has been the lower-risk option at 3.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFQY or DWM?

Over the 5-year period, DWM has performed better with a 10.52% return vs 9.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFQY or DWM?

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

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

DWM has the higher dividend yield at 2.69%, compared with 1.03% for VFQY.

What is the main difference between VFQY and DWM?

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

Which has better risk-adjusted returns?

VFQY currently has the higher Sharpe Ratio (1.75 vs 1.61), 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.