DFAE vs. DFEM

Last updated Aug 2, 2026

DFAE (Dimensional Emerging Core Equity Market ETF) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both Emerging Markets Equities funds from Dimensional. Both are actively managed. Over the past 3 years, DFAE returned 17.93%/yr vs 17.44%/yr for DFEM. Their 0.99 correlation means they have historically moved very closely together. DFAE charges 0.29%/yr vs 0.39%/yr for DFEM.

Performance

DFAE vs. DFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Core Equity Market ETF (DFAE) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAE achieves a 15.96% return, which is significantly higher than DFEM's 14.75% return.

DFAE

• 1D: 0.46%
• 1M: -3.40%
• 6M: 7.79%
• YTD: 15.96%
• 1Y: 31.89%
• 3Y*: 17.93%
• 5Y*: 8.62%
• 10Y*: —
• ALL TIME*: 9.51%

DFEM

• 1D: 0.43%
• 1M: -4.27%
• 6M: 6.72%
• YTD: 14.75%
• 1Y: 29.34%
• 3Y*: 17.44%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 12.40%

*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)
DFAE Dimensional Emerging Core Equity Market ETF	$56.61M	$50.30M	$50.61M
DFEM Dimensional Emerging Markets Core Equity 2 ETF	$43.02M	$39.58M	$39.86M

DFAE vs. DFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFAE Dimensional Emerging Core Equity Market ETF	15.96%	31.48%	7.68%	12.63%	-6.80%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	14.75%	29.51%	7.53%	13.91%	-9.60%

Correlation

The correlation between DFAE and DFEM is 0.99 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.99
Correlation (3Y) Balances recent behavior with more history.	0.99
Correlation (All Time) Calculated using the full available price history since Apr 27, 2022	0.99

The correlation between DFAE and DFEM has been stable across timeframes, ranging from 0.99 to 0.99 - a consistent structural relationship.

DFAE vs. DFEM - Sectors Allocation Comparison

Sectors	DFAE	DFEM
Technology	42.5%	40.4%
Financial Services	16.4%	14.8%
Industrials	8.9%	10.6%
Consumer Cyclical	7.5%	7.9%
Basic Materials	6.6%	7.3%
Communication Services	5.5%	5.0%
Energy	3.3%	3.4%
Healthcare	3.1%	3.6%
Consumer Defensive	2.8%	3.3%
Utilities	2.1%	1.9%
Real Estate	1.4%	1.7%

Return for Risk

DFAE vs. DFEM — Risk / Return Rank

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

DFAE

DFAE Risk / Return Rank: 59
DFAE Sharpe Ratio Rank: 57
DFAE Sortino Ratio Rank: 53
DFAE Omega Ratio Rank: 61
DFAE Calmar Ratio Rank: 65
DFAE Martin Ratio Rank: 59

DFEM

DFEM Risk / Return Rank: 55
DFEM Sharpe Ratio Rank: 53
DFEM Sortino Ratio Rank: 50
DFEM Omega Ratio Rank: 57
DFEM Calmar Ratio Rank: 59
DFEM Martin Ratio Rank: 58

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.

DFAE vs. DFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Core Equity Market ETF (DFAE) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). 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.

	DFAE	DFEM	Difference
Sharpe ratio: Return per unit of total volatility	1.35	1.28	+0.07
Sortino ratio: Return per unit of downside risk	1.84	1.76	+0.09
Omega ratio: Gain probability vs. loss probability	1.26	1.25	+0.01
Calmar ratio: Return relative to maximum drawdown	2.26	2.08	+0.18
Martin ratio: Return relative to average drawdown	7.10	6.85	+0.25

DFAE vs. DFEM - Sharpe Ratio Comparison

The current DFAE Sharpe Ratio is 1.35, which is comparable to the DFEM Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of DFAE and DFEM, 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

DFAE vs. DFEM - Drawdown Comparison

The maximum DFAE drawdown since its inception was -32.21%, which is greater than DFEM's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for DFAE and DFEM.

Drawdown Indicators

	DFAE	DFEM	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-20.82%	-11.39%
Max Drawdown (1Y) Largest decline over 1 year	-13.77%	-13.84%	+0.07%
Max Drawdown (3Y) Largest decline over 3 years	-18.12%	-18.09%	-0.03%
Max Drawdown (5Y) Largest decline over 5 years	-29.70%	—	—
Current Drawdown Current decline from peak	-10.11%	-10.46%	+0.35%
Average Drawdown Average peak-to-trough decline	-10.21%	-5.08%	-5.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.38%	4.19%	+0.19%

Volatility

DFAE vs. DFEM - Volatility Comparison

Dimensional Emerging Core Equity Market ETF (DFAE) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM) have volatilities of 8.34% and 8.15%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAE	DFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.34%	8.15%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	21.21%	20.62%	+0.59%
Volatility (1Y) Calculated over the trailing 1-year period	23.11%	22.46%	+0.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.69%	18.17%	+0.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.53%	18.17%	+0.36%

DFAE vs. DFEM - Expense Ratio Comparison

DFAE has a 0.29% expense ratio, which is lower than DFEM's 0.39% expense ratio.

Dividends

DFAE vs. DFEM - Dividend Comparison

DFAE's dividend yield for the trailing twelve months is around 1.87%, less than DFEM's 1.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
DFAE Dimensional Emerging Core Equity Market ETF	1.87%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.97%	2.32%	2.50%	2.38%	1.99%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFAE and DFEM in my portfolio?

With a correlation of 0.99, DFAE and DFEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DFAE or DFEM?

DFAE has higher volatility (8.34%) compared to DFEM (8.15%). In terms of maximum drawdown, DFAE dropped -32.21% vs DFEM's -20.82%.

Which ETF is better, DFAE or DFEM?

On 3-year performance, DFAE leads with 17.93% vs 17.44% for DFEM. On fees, DFAE is cheaper at 0.29% per year. On volatility, DFEM has been the lower-risk option at 8.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAE or DFEM?

Over the 3-year period, DFAE has performed better with a 17.93% return vs 17.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAE or DFEM?

DFAE is cheaper with a 0.29% expense ratio, compared with 0.39% for DFEM.

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

DFEM has the higher dividend yield at 1.97%, compared with 1.87% for DFAE.

What is the main difference between DFAE and DFEM?

Their fees differ too: 0.29% for DFAE and 0.39% for DFEM.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (1.35 vs 1.28), 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.