DFAE vs. XSOE

Last updated Jun 3, 2026

DFAE (Dimensional Emerging Core Equity Market ETF) and XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) are both Emerging Markets Equities funds. DFAE is actively managed, while XSOE is passively managed. Over the past 5 years, DFAE returned 9.43%/yr vs 5.56%/yr for XSOE. With a 0.98 correlation, they move nearly in lockstep. DFAE charges 0.35%/yr vs 0.32%/yr for XSOE.

Performance

DFAE vs. XSOE - 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 ex-State-Owned Enterprises Fund (XSOE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAE achieves a 27.92% return, which is significantly lower than XSOE's 29.68% return.

DFAE

• 1D: 0.73%
• 1M: 8.96%
• YTD: 27.92%
• 6M: 30.63%
• 1Y: 54.94%
• 3Y*: 24.30%
• 5Y*: 9.43%
• 10Y*: —

XSOE

• 1D: 1.06%
• 1M: 11.05%
• YTD: 29.68%
• 6M: 32.39%
• 1Y: 56.82%
• 3Y*: 23.90%
• 5Y*: 5.56%
• 10Y*: 10.91%

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

DFAE vs. XSOE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DFAE Dimensional Emerging Core Equity Market ETF	27.92%	31.48%	7.68%	12.63%	-17.52%	3.53%	4.85%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	29.68%	30.05%	7.02%	10.28%	-25.83%	-5.92%	5.49%

Correlation

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

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

DFAE vs. XSOE - Sectors Allocation Comparison

Sectors	DFAE	XSOE
Technology	34.8%	37.3%
Financial Services	17.1%	15.5%
Industrials	10.2%	9.6%
Consumer Cyclical	9.1%	12.6%
Basic Materials	7.7%	5.3%
Communication Services	6.1%	7.0%
Energy	4.2%	2.0%
Healthcare	3.5%	4.4%
Consumer Defensive	3.3%	3.8%
Utilities	2.4%	1.4%
Real Estate	1.5%	1.0%

Return for Risk

DFAE vs. XSOE — Risk / Return Rank

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

DFAE

DFAE Risk / Return Rank: 84
DFAE Sharpe Ratio Rank: 87
DFAE Sortino Ratio Rank: 83
DFAE Omega Ratio Rank: 86
DFAE Calmar Ratio Rank: 82
DFAE Martin Ratio Rank: 83

XSOE

XSOE Risk / Return Rank: 84
XSOE Sharpe Ratio Rank: 86
XSOE Sortino Ratio Rank: 83
XSOE Omega Ratio Rank: 86
XSOE Calmar Ratio Rank: 82
XSOE Martin Ratio Rank: 82

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. XSOE - 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 ex-State-Owned Enterprises Fund (XSOE). 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	XSOE	Difference
Sharpe ratio Return per unit of total volatility	2.92	2.90	+0.02
Sortino ratio Return per unit of downside risk	3.74	3.77	-0.03
Omega ratio Gain probability vs. loss probability	1.54	1.53	0.00
Calmar ratio Return relative to maximum drawdown	4.40	4.37	+0.03
Martin ratio Return relative to average drawdown	17.09	16.75	+0.34
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. XSOE - Sharpe Ratio Comparison

The current DFAE Sharpe Ratio is 2.92, which is comparable to the XSOE Sharpe Ratio of 2.90. The chart below compares the historical Sharpe Ratios of DFAE and XSOE, 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	XSOE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.92	2.90	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.29	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.53	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	0.41	+0.24

Drawdowns

DFAE vs. XSOE - Drawdown Comparison

The maximum DFAE drawdown since its inception was -32.21%, smaller than the maximum XSOE drawdown of -45.23%. Use the drawdown chart below to compare losses from any high point for DFAE and XSOE.

Drawdown Indicators

	DFAE	XSOE	Difference
Max Drawdown Largest peak-to-trough decline	-32.21%	-45.23%	+13.02%
Max Drawdown (1Y) Largest decline over 1 year	-12.80%	-13.31%	+0.51%
Max Drawdown (3Y) Largest decline over 3 years	-18.12%	-19.96%	+1.84%
Max Drawdown (5Y) Largest decline over 5 years	-32.19%	-42.05%	+9.86%
Max Drawdown (10Y) Largest decline over 10 years	—	-45.23%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.33%	-17.29%	+6.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.30%	3.47%	-0.17%

Volatility

DFAE vs. XSOE - Volatility Comparison

The current volatility for Dimensional Emerging Core Equity Market ETF (DFAE) is 7.97%, while WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) has a volatility of 8.40%. This indicates that DFAE experiences smaller price fluctuations and is considered to be less risky than XSOE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAE	XSOE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.97%	8.40%	-0.43%
Volatility (6M) Calculated over the trailing 6-month period	16.47%	17.18%	-0.71%
Volatility (1Y) Calculated over the trailing 1-year period	18.95%	19.72%	-0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.81%	19.43%	-1.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.84%	20.59%	-2.75%

DFAE vs. XSOE - Expense Ratio Comparison

DFAE has a 0.35% expense ratio, which is higher than XSOE's 0.32% expense ratio.

Dividends

DFAE vs. XSOE - Dividend Comparison

DFAE's dividend yield for the trailing twelve months is around 1.71%, more than XSOE's 1.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAE Dimensional Emerging Core Equity Market ETF	1.71%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	1.26%	1.50%	1.44%	1.78%	2.53%	1.36%	1.02%	2.01%	1.56%	0.65%	1.43%	3.93%

Frequently Asked Questions

Can I hold both DFAE and XSOE in my portfolio?

With a correlation of 0.98, DFAE and XSOE 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 XSOE?

XSOE has higher volatility (8.40%) compared to DFAE (7.97%). In terms of maximum drawdown, DFAE dropped -32.21% vs XSOE's -45.23%.

Which ETF is better, DFAE or XSOE?

On 5-year performance, DFAE leads with 9.43% vs 5.56% for XSOE. On fees, XSOE is cheaper at 0.32% per year. On volatility, DFAE has been the lower-risk option at 7.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAE or XSOE?

Over the 5-year period, DFAE has performed better with a 9.43% return vs 5.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAE or XSOE?

XSOE is cheaper with a 0.32% expense ratio, compared with 0.35% for DFAE.

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

DFAE has the higher dividend yield at 1.71%, compared with 1.26% for XSOE.

What is the main difference between DFAE and XSOE?

They also come from different issuers: Dimensional and WisdomTree. Their fees differ too: 0.35% for DFAE and 0.32% for XSOE.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (2.92 vs 2.90), 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.