CA vs. DFNM

Last updated Jul 17, 2026

CA (Xtrackers California Municipal Bond ETF) and DFNM (Dimensional National Municipal Bond ETF) are both exchange-traded funds - CA is a Single State Muni fund tracking the ICE AMT-Free Broad Liquid California Municipal Index, while DFNM is a Municipal Bonds fund actively managed by Dimensional. CA is passively managed, while DFNM is actively managed. Over the past year, CA returned 6.45% vs 4.47% for DFNM. A 0.61 correlation means they provide meaningful diversification when combined. CA charges 0.20%/yr vs 0.17%/yr for DFNM.

Performance

CA vs. DFNM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xtrackers California Municipal Bond ETF (CA) and Dimensional National Municipal Bond ETF (DFNM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with CA having a 1.20% return and DFNM slightly higher at 1.21%.

CA

• 1D: 0.00%
• 1M: 0.00%
• 6M: 0.45%
• YTD: 1.20%
• 1Y: 6.45%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFNM

• 1D: -0.12%
• 1M: -0.12%
• 6M: 0.54%
• YTD: 1.21%
• 1Y: 4.47%
• 3Y*: 3.09%
• 5Y*: —
• 10Y*: —

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

CA vs. DFNM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CA Xtrackers California Municipal Bond ETF	1.20%	3.05%	1.51%	0.79%
DFNM Dimensional National Municipal Bond ETF	1.21%	3.87%	1.19%	0.82%

Correlation

The correlation between CA and DFNM is 0.50, 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	0.50
Correlation (All Time) Calculated using the full available price history since Dec 14, 2023	0.61

The correlation between CA and DFNM shifts across timeframes, from 0.50 (1 year) to 0.61 (all time), reflecting how their relationship changes across market environments.

Return for Risk

CA vs. DFNM — Risk / Return Rank

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

CA

CA Risk / Return Rank: 83
CA Sharpe Ratio Rank: 93
CA Sortino Ratio Rank: 94
CA Omega Ratio Rank: 96
CA Calmar Ratio Rank: 63
CA Martin Ratio Rank: 66

DFNM

DFNM Risk / Return Rank: 81
DFNM Sharpe Ratio Rank: 93
DFNM Sortino Ratio Rank: 93
DFNM Omega Ratio Rank: 95
DFNM Calmar Ratio Rank: 61
DFNM Martin Ratio Rank: 63

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.

CA vs. DFNM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers California Municipal Bond ETF (CA) and Dimensional National Municipal Bond ETF (DFNM). 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.

	CA	DFNM	Difference
Sharpe ratio: Return per unit of total volatility	2.69	2.61	+0.08
Sortino ratio: Return per unit of downside risk	4.03	3.74	+0.30
Omega ratio: Gain probability vs. loss probability	1.68	1.58	+0.10
Calmar ratio: Return relative to maximum drawdown	2.52	2.44	+0.08
Martin ratio: Return relative to average drawdown	9.32	8.79	+0.53

CA vs. DFNM - Sharpe Ratio Comparison

The current CA Sharpe Ratio is 2.69, which is comparable to the DFNM Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of CA and DFNM, 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

CA vs. DFNM - Drawdown Comparison

The maximum CA drawdown since its inception was -5.24%, smaller than the maximum DFNM drawdown of -6.99%. Use the drawdown chart below to compare losses from any high point for CA and DFNM.

Drawdown Indicators

	CA	DFNM	Difference
Max Drawdown Largest peak-to-trough decline	-5.24%	-6.99%	+1.75%
Max Drawdown (1Y) Largest decline over 1 year	-2.57%	-1.84%	-0.73%
Max Drawdown (3Y) Largest decline over 3 years	—	-2.82%	—
Current Drawdown Current decline from peak	-0.75%	-0.46%	-0.29%
Average Drawdown Average peak-to-trough decline	-1.24%	-1.92%	+0.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.70%	0.51%	+0.19%

Volatility

CA vs. DFNM - Volatility Comparison

The current volatility for Xtrackers California Municipal Bond ETF (CA) is 0.00%, while Dimensional National Municipal Bond ETF (DFNM) has a volatility of 0.34%. This indicates that CA experiences smaller price fluctuations and is considered to be less risky than DFNM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CA	DFNM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.00%	0.34%	-0.34%
Volatility (6M) Calculated over the trailing 6-month period	1.78%	1.29%	+0.49%
Volatility (1Y) Calculated over the trailing 1-year period	2.41%	1.72%	+0.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.89%	2.51%	+1.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.89%	2.51%	+1.38%

CA vs. DFNM - Expense Ratio Comparison

CA has a 0.20% expense ratio, which is higher than DFNM's 0.17% 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%.

Dividends

CA vs. DFNM - Dividend Comparison

CA's dividend yield for the trailing twelve months is around 2.69%, less than DFNM's 2.94% yield.

Position	TTM	2025	2024	2023	2022	2021
CA Xtrackers California Municipal Bond ETF	2.69%	3.14%	3.03%	0.00%	0.00%	0.00%
DFNM Dimensional National Municipal Bond ETF	2.94%	2.94%	2.74%	2.39%	1.16%	0.05%

Frequently Asked Questions

Can I hold both CA and DFNM in my portfolio?

CA and DFNM have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CA or DFNM?

DFNM has higher volatility (0.34%) compared to CA (0.00%). In terms of maximum drawdown, CA dropped -5.24% vs DFNM's -6.99%.

Which ETF is better, CA or DFNM?

On 1-year performance, CA leads with 6.45% vs 4.47% for DFNM. On fees, DFNM is cheaper at 0.17% per year. On volatility, CA has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CA or DFNM?

Over the 1-year period, CA has performed better with a 6.45% return vs 4.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CA or DFNM?

DFNM is cheaper with a 0.17% expense ratio, compared with 0.20% for CA.

Which ETF pays a higher dividend yield, CA or DFNM?

DFNM has the higher dividend yield at 2.94%, compared with 2.69% for CA.

What is the main difference between CA and DFNM?

CA is categorized as Single State Muni, while DFNM is Municipal Bonds. They also come from different issuers: Xtrackers and Dimensional. Their fees differ too: 0.20% for CA and 0.17% for DFNM.

Which has better risk-adjusted returns?

CA currently has the higher Sharpe Ratio (2.69 vs 2.61), 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.