DFAE vs. DEM

Last updated Jun 5, 2026

DFAE (Dimensional Emerging Core Equity Market ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both Emerging Markets Equities funds. DFAE is actively managed, while DEM is passively managed. Over the past 5 years, DFAE returned 8.77%/yr vs 9.51%/yr for DEM. Their correlation of 0.87 suggests significant overlap in exposure. DFAE charges 0.35%/yr vs 0.63%/yr for DEM.

Performance

DFAE vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Core Equity Market ETF (DFAE) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAE achieves a 25.28% return, which is significantly higher than DEM's 19.64% return.

DFAE

• 1D: -0.83%
• 1M: 4.78%
• YTD: 25.28%
• 6M: 27.97%
• 1Y: 49.72%
• 3Y*: 23.46%
• 5Y*: 8.77%
• 10Y*: —

DEM

• 1D: -0.27%
• 1M: 4.10%
• YTD: 19.64%
• 6M: 20.24%
• 1Y: 31.31%
• 3Y*: 19.22%
• 5Y*: 9.51%
• 10Y*: 10.27%

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

DFAE vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DFAE Dimensional Emerging Core Equity Market ETF	25.28%	31.48%	7.68%	12.63%	-17.52%	3.53%	4.85%
DEM WisdomTree Emerging Markets Equity Income Fund	19.64%	21.29%	4.46%	20.93%	-10.43%	11.49%	2.30%

Correlation

The correlation between DFAE and DEM is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Dec 3, 2020	0.87

The correlation between DFAE and DEM has been stable across timeframes, ranging from 0.85 to 0.88 - a consistent structural relationship.

DFAE vs. DEM - Sectors Allocation Comparison

Sectors	DFAE	DEM
Technology	34.8%	17.4%
Financial Services	17.1%	21.9%
Industrials	10.2%	9.5%
Consumer Cyclical	9.1%	5.0%
Basic Materials	7.7%	3.5%
Communication Services	6.1%	3.0%
Energy	4.2%	6.1%
Healthcare	3.5%	0.6%
Consumer Defensive	3.3%	5.8%
Utilities	2.4%	3.0%
Real Estate	1.5%	3.0%

Return for Risk

DFAE vs. DEM — Risk / Return Rank

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

DFAE

DFAE Risk / Return Rank: 79
DFAE Sharpe Ratio Rank: 82
DFAE Sortino Ratio Rank: 78
DFAE Omega Ratio Rank: 81
DFAE Calmar Ratio Rank: 78
DFAE Martin Ratio Rank: 79

DEM

DEM Risk / Return Rank: 74
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 72
DEM Omega Ratio Rank: 72
DEM Calmar Ratio Rank: 79
DEM Martin Ratio Rank: 75

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.

DFAE vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Core Equity Market ETF (DFAE) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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.

	DFAE	DEM	Difference
Sharpe ratio: Return per unit of total volatility	2.63	2.31	+0.32
Sortino ratio: Return per unit of downside risk	3.43	3.20	+0.23
Omega ratio: Gain probability vs. loss probability	1.48	1.42	+0.06
Calmar ratio: Return relative to maximum drawdown	3.90	3.98	-0.08
Martin ratio: Return relative to average drawdown	15.10	14.10	+1.01
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFAE vs. DEM - Sharpe Ratio Comparison

The current DFAE Sharpe Ratio is 2.63, which is comparable to the DEM Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of DFAE and DEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DFAE	DEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	2.31	+0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	0.62	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.57	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	0.22	+0.41

Drawdowns

DFAE vs. DEM - Drawdown Comparison

The maximum DFAE drawdown since its inception was -32.21%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for DFAE and DEM.

Drawdown Indicators

	DFAE	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-51.85%	+19.64%
Max Drawdown (1Y) Largest decline over 1 year	-12.80%	-7.89%	-4.91%
Max Drawdown (3Y) Largest decline over 3 years	-18.12%	-15.64%	-2.48%
Max Drawdown (5Y) Largest decline over 5 years	-32.19%	-27.18%	-5.01%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-2.07%	-1.45%	-0.62%
Average Drawdown Average peak-to-trough decline	-10.31%	-12.90%	+2.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.30%	2.23%	+1.07%

Volatility

DFAE vs. DEM - Volatility Comparison

Dimensional Emerging Core Equity Market ETF (DFAE) has a higher volatility of 8.00% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.32%. This indicates that DFAE's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAE	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.00%	5.32%	+2.68%
Volatility (6M) Calculated over the trailing 6-month period	16.56%	11.34%	+5.22%
Volatility (1Y) Calculated over the trailing 1-year period	19.02%	13.60%	+5.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	15.33%	+2.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.84%	17.96%	-0.12%

DFAE vs. DEM - Expense Ratio Comparison

DFAE has a 0.35% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

DFAE vs. DEM - Dividend Comparison

DFAE's dividend yield for the trailing twelve months is around 1.75%, less than DEM's 3.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	3.77%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
DFAE Dimensional Emerging Core Equity Market ETF	1.75%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFAE and DEM in my portfolio?

DFAE and DEM have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFAE or DEM?

DFAE has higher volatility (8.00%) compared to DEM (5.32%). In terms of maximum drawdown, DFAE dropped -32.21% vs DEM's -51.85%.

Which ETF is better, DFAE or DEM?

On 5-year performance, DEM leads with 9.51% vs 8.77% for DFAE. On fees, DFAE is cheaper at 0.35% per year. On volatility, DEM has been the lower-risk option at 5.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAE or DEM?

Over the 5-year period, DEM has performed better with a 9.51% return vs 8.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAE or DEM?

DFAE is cheaper with a 0.35% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, DFAE or DEM?

DEM has the higher dividend yield at 3.77%, compared with 1.75% for DFAE.

What is the main difference between DFAE and DEM?

They also come from different issuers: Dimensional and WisdomTree. Their fees differ too: 0.35% for DFAE and 0.63% for DEM.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (2.63 vs 2.31), 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.