DFAE vs. VT

Last updated Jun 24, 2026

DFAE (Dimensional Emerging Core Equity Market ETF) and VT (Vanguard Total World Stock ETF) are both exchange-traded funds - DFAE is a Emerging Markets Equities fund actively managed by Dimensional, while VT is a Global Equities fund tracking the FTSE Global All Cap Index. DFAE is actively managed, while VT is passively managed. Over the past 5 years, DFAE returned 8.44%/yr vs 10.51%/yr for VT. A 0.79 correlation means they provide meaningful diversification when combined. DFAE charges 0.35%/yr vs 0.06%/yr for VT.

Performance

DFAE vs. VT - Performance Comparison

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

Returns By Period

In the year-to-date period, DFAE achieves a 21.56% return, which is significantly higher than VT's 10.06% return.

DFAE

• 1D: -5.77%
• 1M: 1.20%
• YTD: 21.56%
• 6M: 22.20%
• 1Y: 43.42%
• 3Y*: 22.11%
• 5Y*: 8.44%
• 10Y*: —

VT

• 1D: -2.05%
• 1M: -0.44%
• YTD: 10.06%
• 6M: 9.32%
• 1Y: 25.71%
• 3Y*: 19.92%
• 5Y*: 10.51%
• 10Y*: 12.96%

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

DFAE vs. VT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DFAE Dimensional Emerging Core Equity Market ETF	21.56%	31.48%	7.68%	12.63%	-17.52%	3.53%	5.93%
VT Vanguard Total World Stock ETF	10.06%	22.43%	16.49%	22.02%	-18.00%	18.27%	3.39%

Correlation

The correlation between DFAE and VT 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	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020	0.79

The correlation between DFAE and VT has been stable across timeframes, ranging from 0.79 to 0.85 - a consistent structural relationship.

DFAE vs. VT - Sectors Allocation Comparison

Sectors	DFAE	VT
Technology	41.6%	31.1%
Financial Services	15.8%	15.2%
Industrials	9.1%	11.4%
Consumer Cyclical	8.1%	9.3%
Basic Materials	7.0%	4.1%
Communication Services	5.4%	8.0%
Energy	3.5%	3.8%
Healthcare	3.1%	7.9%
Consumer Defensive	2.9%	4.5%
Utilities	2.1%	2.4%
Real Estate	1.4%	2.3%

Return for Risk

DFAE vs. VT — Risk / Return Rank

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

DFAE

DFAE Risk / Return Rank: 66
DFAE Sharpe Ratio Rank: 64
DFAE Sortino Ratio Rank: 56
DFAE Omega Ratio Rank: 68
DFAE Calmar Ratio Rank: 71
DFAE Martin Ratio Rank: 71

VT

VT Risk / Return Rank: 59
VT Sharpe Ratio Rank: 59
VT Sortino Ratio Rank: 57
VT Omega Ratio Rank: 58
VT Calmar Ratio Rank: 56
VT Martin Ratio Rank: 66

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. VT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Core Equity Market ETF (DFAE) and Vanguard Total World Stock ETF (VT). 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	VT	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.91	+0.10
Sortino ratio: Return per unit of downside risk	2.56	2.62	-0.06
Omega ratio: Gain probability vs. loss probability	1.39	1.35	+0.04
Calmar ratio: Return relative to maximum drawdown	3.41	2.67	+0.74
Martin ratio: Return relative to average drawdown	12.56	11.57	+0.99

DFAE vs. VT - Sharpe Ratio Comparison

The current DFAE Sharpe Ratio is 2.01, which is comparable to the VT Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of DFAE and VT, 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. VT - Drawdown Comparison

The maximum DFAE drawdown since its inception was -32.21%, smaller than the maximum VT drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for DFAE and VT.

Drawdown Indicators

	DFAE	VT	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-50.27%	+18.06%
Max Drawdown (1Y) Largest decline over 1 year	-12.80%	-9.67%	-3.13%
Max Drawdown (3Y) Largest decline over 3 years	-18.12%	-16.51%	-1.61%
Max Drawdown (5Y) Largest decline over 5 years	-31.73%	-26.38%	-5.35%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.24%	—
Current Drawdown Current decline from peak	-5.77%	-2.80%	-2.97%
Average Drawdown Average peak-to-trough decline	-10.25%	-7.00%	-3.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.47%	2.23%	+1.24%

Volatility

DFAE vs. VT - Volatility Comparison

Dimensional Emerging Core Equity Market ETF (DFAE) has a higher volatility of 12.23% compared to Vanguard Total World Stock ETF (VT) at 5.65%. This indicates that DFAE's price experiences larger fluctuations and is considered to be riskier than VT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAE	VT	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.23%	5.65%	+6.58%
Volatility (6M) Calculated over the trailing 6-month period	19.85%	11.32%	+8.53%
Volatility (1Y) Calculated over the trailing 1-year period	21.76%	13.58%	+8.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.45%	16.19%	+2.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.36%	17.20%	+1.16%

DFAE vs. VT - Expense Ratio Comparison

DFAE has a 0.35% expense ratio, which is higher than VT's 0.06% expense ratio.

Dividends

DFAE vs. VT - Dividend Comparison

DFAE's dividend yield for the trailing twelve months is around 1.80%, more than VT's 1.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAE Dimensional Emerging Core Equity Market ETF	1.80%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%
VT Vanguard Total World Stock ETF	1.61%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both DFAE and VT in my portfolio?

DFAE and VT 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 VT?

DFAE has higher volatility (12.23%) compared to VT (5.65%). In terms of maximum drawdown, DFAE dropped -32.21% vs VT's -50.27%.

Which ETF is better, DFAE or VT?

On 5-year performance, VT leads with 10.51% vs 8.44% for DFAE. On fees, VT is cheaper at 0.06% per year. On volatility, VT has been the lower-risk option at 5.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAE or VT?

Over the 5-year period, VT has performed better with a 10.51% return vs 8.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAE or VT?

VT is cheaper with a 0.06% expense ratio, compared with 0.35% for DFAE.

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

DFAE has the higher dividend yield at 1.80%, compared with 1.61% for VT.

What is the main difference between DFAE and VT?

DFAE is categorized as Emerging Markets Equities, while VT is Global Equities. They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.35% for DFAE and 0.06% for VT.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (2.01 vs 1.91), 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.