DFAE vs. VWO

Last updated Jun 24, 2026

DFAE (Dimensional Emerging Core Equity Market ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds. DFAE is actively managed, while VWO is passively managed. Over the past 5 years, DFAE returned 8.44%/yr vs 5.09%/yr for VWO. With a 0.98 correlation, they move nearly in lockstep. DFAE charges 0.35%/yr vs 0.08%/yr for VWO.

Performance

DFAE vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Core Equity Market ETF (DFAE) and Vanguard FTSE Emerging Markets ETF (VWO). 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 VWO's 10.55% return.

DFAE

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

VWO

• 1D: -3.07%
• 1M: 0.76%
• YTD: 10.55%
• 6M: 10.67%
• 1Y: 27.03%
• 3Y*: 17.42%
• 5Y*: 5.09%
• 10Y*: 8.97%

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

DFAE vs. VWO - 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%
VWO Vanguard FTSE Emerging Markets ETF	10.55%	25.60%	10.59%	9.25%	-17.98%	1.26%	3.84%

Correlation

The correlation between DFAE and VWO is 0.96 - 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	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020	0.98

The correlation between DFAE and VWO has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

DFAE vs. VWO - Sectors Allocation Comparison

Sectors	DFAE	VWO
Technology	41.6%	31.6%
Financial Services	15.8%	16.8%
Industrials	9.1%	6.8%
Consumer Cyclical	8.1%	8.7%
Basic Materials	7.0%	7.0%
Communication Services	5.4%	5.8%
Energy	3.5%	3.6%
Healthcare	3.1%	3.4%
Consumer Defensive	2.9%	3.1%
Utilities	2.1%	2.4%
Real Estate	1.4%	1.8%

Return for Risk

DFAE vs. VWO — 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

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 48
VWO Sortino Ratio Rank: 46
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 51
VWO Martin Ratio Rank: 51

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. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Core Equity Market ETF (DFAE) and Vanguard FTSE Emerging Markets ETF (VWO). 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	VWO	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.60	+0.40
Sortino ratio: Return per unit of downside risk	2.56	2.22	+0.34
Omega ratio: Gain probability vs. loss probability	1.39	1.30	+0.09
Calmar ratio: Return relative to maximum drawdown	3.41	2.43	+0.98
Martin ratio: Return relative to average drawdown	12.56	8.56	+4.01

DFAE vs. VWO - Sharpe Ratio Comparison

The current DFAE Sharpe Ratio is 2.01, which is comparable to the VWO Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of DFAE and VWO, 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. VWO - Drawdown Comparison

The maximum DFAE drawdown since its inception was -32.21%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for DFAE and VWO.

Drawdown Indicators

	DFAE	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-67.68%	+35.47%
Max Drawdown (1Y) Largest decline over 1 year	-12.80%	-11.17%	-1.63%
Max Drawdown (3Y) Largest decline over 3 years	-18.12%	-17.37%	-0.75%
Max Drawdown (5Y) Largest decline over 5 years	-31.73%	-32.60%	+0.87%
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-5.77%	-3.07%	-2.70%
Average Drawdown Average peak-to-trough decline	-10.25%	-15.79%	+5.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.47%	3.17%	+0.30%

Volatility

DFAE vs. VWO - Volatility Comparison

Dimensional Emerging Core Equity Market ETF (DFAE) has a higher volatility of 12.23% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 7.37%. This indicates that DFAE's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAE	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.23%	7.37%	+4.86%
Volatility (6M) Calculated over the trailing 6-month period	19.85%	14.62%	+5.23%
Volatility (1Y) Calculated over the trailing 1-year period	21.76%	16.94%	+4.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.45%	17.58%	+0.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.36%	19.18%	-0.82%

DFAE vs. VWO - Expense Ratio Comparison

DFAE has a 0.35% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

DFAE vs. VWO - Dividend Comparison

DFAE's dividend yield for the trailing twelve months is around 1.80%, less than VWO's 2.33% 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%
VWO Vanguard FTSE Emerging Markets ETF	2.33%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both DFAE and VWO in my portfolio?

With a correlation of 0.96, DFAE and VWO 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 VWO?

DFAE has higher volatility (12.23%) compared to VWO (7.37%). In terms of maximum drawdown, DFAE dropped -32.21% vs VWO's -67.68%.

Which ETF is better, DFAE or VWO?

On 5-year performance, DFAE leads with 8.44% vs 5.09% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 7.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAE or VWO?

Over the 5-year period, DFAE has performed better with a 8.44% return vs 5.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAE or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.35% for DFAE.

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

VWO has the higher dividend yield at 2.33%, compared with 1.80% for DFAE.

What is the main difference between DFAE and VWO?

They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.35% for DFAE and 0.08% for VWO.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (2.01 vs 1.60), 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.