DFAE vs. IEMG

Last updated Jun 9, 2026

DFAE (Dimensional Emerging Core Equity Market ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - DFAE is a Emerging Markets Equities fund actively managed by Dimensional, while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). DFAE is actively managed, while IEMG is passively managed. Over the past 5 years, DFAE returned 8.03%/yr vs 6.57%/yr for IEMG. With a 0.99 correlation, they move nearly in lockstep. DFAE charges 0.35%/yr vs 0.09%/yr for IEMG.

Performance

DFAE vs. IEMG - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with DFAE having a 19.47% return and IEMG slightly lower at 18.97%.

DFAE

• 1D: 1.86%
• 1M: -3.41%
• YTD: 19.47%
• 6M: 21.35%
• 1Y: 41.41%
• 3Y*: 20.86%
• 5Y*: 8.03%
• 10Y*: —

IEMG

• 1D: 1.70%
• 1M: -3.66%
• YTD: 18.97%
• 6M: 20.80%
• 1Y: 40.80%
• 3Y*: 20.51%
• 5Y*: 6.57%
• 10Y*: 9.88%

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

DFAE vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DFAE Dimensional Emerging Core Equity Market ETF	19.47%	31.48%	7.68%	12.63%	-17.52%	3.53%	4.85%
IEMG iShares Core MSCI Emerging Markets ETF	18.97%	32.56%	6.50%	11.52%	-19.98%	-0.64%	4.87%

Correlation

The correlation between DFAE and IEMG is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Dec 3, 2020	0.99

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

DFAE vs. IEMG - Sectors Allocation Comparison

Sectors	DFAE	IEMG
Technology	34.8%	35.0%
Financial Services	17.1%	18.4%
Industrials	10.2%	9.0%
Consumer Cyclical	9.1%	9.5%
Basic Materials	7.7%	6.9%
Communication Services	6.1%	6.4%
Energy	4.2%	3.8%
Healthcare	3.5%	3.7%
Consumer Defensive	3.3%	3.3%
Utilities	2.4%	2.2%
Real Estate	1.5%	1.7%

Return for Risk

DFAE vs. IEMG — Risk / Return Rank

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

DFAE

DFAE Risk / Return Rank: 70
DFAE Sharpe Ratio Rank: 70
DFAE Sortino Ratio Rank: 64
DFAE Omega Ratio Rank: 74
DFAE Calmar Ratio Rank: 71
DFAE Martin Ratio Rank: 73

IEMG

IEMG Risk / Return Rank: 67
IEMG Sharpe Ratio Rank: 67
IEMG Sortino Ratio Rank: 61
IEMG Omega Ratio Rank: 71
IEMG Calmar Ratio Rank: 68
IEMG Martin Ratio Rank: 69

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. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Core Equity Market ETF (DFAE) and iShares Core MSCI Emerging Markets ETF (IEMG). 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	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	2.06	1.99	+0.07
Sortino ratio: Return per unit of downside risk	2.65	2.58	+0.07
Omega ratio: Gain probability vs. loss probability	1.39	1.38	+0.01
Calmar ratio: Return relative to maximum drawdown	3.25	3.10	+0.15
Martin ratio: Return relative to average drawdown	12.32	11.68	+0.64
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. IEMG - Sharpe Ratio Comparison

The current DFAE Sharpe Ratio is 2.06, which is comparable to the IEMG Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of DFAE and IEMG, 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	IEMG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.06	1.99	+0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.35	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.33	+0.24

Drawdowns

DFAE vs. IEMG - Drawdown Comparison

The maximum DFAE drawdown since its inception was -32.21%, smaller than the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for DFAE and IEMG.

Drawdown Indicators

	DFAE	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-38.71%	+6.50%
Max Drawdown (1Y) Largest decline over 1 year	-12.80%	-13.21%	+0.41%
Max Drawdown (3Y) Largest decline over 3 years	-18.12%	-17.21%	-0.91%
Max Drawdown (5Y) Largest decline over 5 years	-31.81%	-35.75%	+3.94%
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-6.61%	-7.00%	+0.39%
Average Drawdown Average peak-to-trough decline	-10.31%	-12.97%	+2.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.37%	3.50%	-0.13%

Volatility

DFAE vs. IEMG - Volatility Comparison

Dimensional Emerging Core Equity Market ETF (DFAE) and iShares Core MSCI Emerging Markets ETF (IEMG) have volatilities of 10.28% and 10.33%, 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	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.28%	10.33%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	17.98%	18.35%	-0.37%
Volatility (1Y) Calculated over the trailing 1-year period	20.20%	20.62%	-0.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.06%	18.62%	-0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	20.14%	-2.08%

DFAE vs. IEMG - Expense Ratio Comparison

DFAE has a 0.35% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

DFAE vs. IEMG - Dividend Comparison

DFAE's dividend yield for the trailing twelve months is around 1.84%, less than IEMG's 2.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAE Dimensional Emerging Core Equity Market ETF	1.84%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.31%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both DFAE and IEMG in my portfolio?

With a correlation of 0.99, DFAE and IEMG 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 IEMG?

IEMG has higher volatility (10.33%) compared to DFAE (10.28%). In terms of maximum drawdown, DFAE dropped -32.21% vs IEMG's -38.71%.

Which ETF is better, DFAE or IEMG?

On 5-year performance, DFAE leads with 8.03% vs 6.57% for IEMG. On fees, IEMG is cheaper at 0.09% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAE or IEMG?

Over the 5-year period, DFAE has performed better with a 8.03% return vs 6.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAE or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.35% for DFAE.

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

IEMG has the higher dividend yield at 2.31%, compared with 1.84% for DFAE.

What is the main difference between DFAE and IEMG?

DFAE is categorized as Emerging Markets Equities, while IEMG is Emerging Markets Diversified. They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.35% for DFAE and 0.09% for IEMG.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (2.06 vs 1.99), 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.