DFAI vs. MCSE

Last updated Aug 4, 2026

DFAI (Dimensional International Core Equity Market ETF) and MCSE (Franklin Sustainable International Equity ETF) are both Foreign Large Cap Equities funds. Both are actively managed. Over the past 3 years, DFAI returned 18.65%/yr vs 0.74%/yr for MCSE. Their 0.74 correlation means they have sometimes moved together and sometimes differently. DFAI charges 0.18%/yr vs 0.59%/yr for MCSE.

Performance

DFAI vs. MCSE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional International Core Equity Market ETF (DFAI) and Franklin Sustainable International Equity ETF (MCSE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAI achieves a 12.47% return, which is significantly higher than MCSE's 1.12% return.

DFAI

• 1D: 0.40%
• 1M: 1.66%
• 6M: 6.44%
• YTD: 12.47%
• 1Y: 27.22%
• 3Y*: 18.65%
• 5Y*: 10.24%
• 10Y*: —
• ALL TIME*: 12.29%

MCSE

• 1D: 0.00%
• 1M: 0.00%
• 6M: 0.00%
• YTD: 1.12%
• 1Y: 4.30%
• 3Y*: 0.74%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.06%

*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)
DFAI Dimensional International Core Equity Market ETF	$74.51M	$70.03M	$61.85M
MCSE Franklin Sustainable International Equity ETF	$0.00	$0.00	$0.00

DFAI vs. MCSE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFAI Dimensional International Core Equity Market ETF	12.47%	34.04%	4.68%	17.60%	9.26%
MCSE Franklin Sustainable International Equity ETF	1.12%	7.79%	-9.46%	14.86%	10.04%

Correlation

The correlation between DFAI and MCSE is 0.46, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.46
Correlation (3Y) Balances recent behavior with more history.	0.70
Correlation (All Time) Calculated using the full available price history since Oct 31, 2022	0.74

Over the past year, the correlation between DFAI and MCSE has dropped to 0.46 - well below their long-term average of 0.74, suggesting their price drivers have been diverging.

DFAI vs. MCSE - Sectors Allocation Comparison

Sectors	DFAI	MCSE
Financial Services	23.1%	2.1%
Industrials	19.1%	18.1%
Technology	11.1%	31.1%
Healthcare	8.8%	20.1%
Consumer Cyclical	8.6%	13.8%
Basic Materials	8.4%	5.1%
Consumer Defensive	6.4%	5.0%
Energy	5.8%	-
Utilities	3.8%	-
Communication Services	3.6%	4.7%
Real Estate	1.4%	-

Return for Risk

DFAI vs. MCSE — Risk / Return Rank

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

DFAI

DFAI Risk / Return Rank: 77
DFAI Sharpe Ratio Rank: 80
DFAI Sortino Ratio Rank: 79
DFAI Omega Ratio Rank: 78
DFAI Calmar Ratio Rank: 70
DFAI Martin Ratio Rank: 76

MCSE

MCSE Risk / Return Rank: 20
MCSE Sharpe Ratio Rank: 20
MCSE Sortino Ratio Rank: 19
MCSE Omega Ratio Rank: 24
MCSE Calmar Ratio Rank: 18
MCSE Martin Ratio Rank: 18

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.

DFAI vs. MCSE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional International Core Equity Market ETF (DFAI) and Franklin Sustainable International Equity ETF (MCSE). 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.

	DFAI	MCSE	Difference
Sharpe ratio: Return per unit of total volatility	1.87	0.46	+1.41
Sortino ratio: Return per unit of downside risk	2.62	0.70	+1.92
Omega ratio: Gain probability vs. loss probability	1.33	1.12	+0.21
Calmar ratio: Return relative to maximum drawdown	2.50	0.45	+2.04
Martin ratio: Return relative to average drawdown	9.83	1.13	+8.70

DFAI vs. MCSE - Sharpe Ratio Comparison

The current DFAI Sharpe Ratio is 1.87, which is higher than the MCSE Sharpe Ratio of 0.46. The chart below compares the historical Sharpe Ratios of DFAI and MCSE, 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

DFAI vs. MCSE - Drawdown Comparison

The maximum DFAI drawdown since its inception was -27.44%, roughly equal to the maximum MCSE drawdown of -26.36%. Use the drawdown chart below to compare losses from any high point for DFAI and MCSE.

Drawdown Indicators

	DFAI	MCSE	Difference
Max Drawdown Largest peak-to-trough decline	-27.44%	-26.36%	-1.08%
Max Drawdown (1Y) Largest decline over 1 year	-10.95%	-10.42%	-0.53%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-26.36%	+13.11%
Max Drawdown (5Y) Largest decline over 5 years	-27.44%	—	—
Current Drawdown Current decline from peak	-0.24%	-10.51%	+10.27%
Average Drawdown Average peak-to-trough decline	-5.01%	-8.80%	+3.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	4.37%	-1.59%

Volatility

DFAI vs. MCSE - Volatility Comparison

Dimensional International Core Equity Market ETF (DFAI) has a higher volatility of 4.10% compared to Franklin Sustainable International Equity ETF (MCSE) at 0.00%. This indicates that DFAI's price experiences larger fluctuations and is considered to be riskier than MCSE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAI	MCSE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.10%	0.00%	+4.10%
Volatility (6M) Calculated over the trailing 6-month period	12.59%	1.87%	+10.72%
Volatility (1Y) Calculated over the trailing 1-year period	14.65%	10.29%	+4.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.00%	19.07%	-3.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.69%	19.07%	-3.38%

DFAI vs. MCSE - Expense Ratio Comparison

DFAI has a 0.18% expense ratio, which is lower than MCSE's 0.59% expense ratio.

Dividends

DFAI vs. MCSE - Dividend Comparison

DFAI's dividend yield for the trailing twelve months is around 2.29%, less than MCSE's 3.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
DFAI Dimensional International Core Equity Market ETF	2.29%	2.45%	2.72%	2.64%	2.72%	2.06%	0.09%
MCSE Franklin Sustainable International Equity ETF	3.74%	3.78%	0.63%	0.57%	0.48%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFAI and MCSE in my portfolio?

DFAI and MCSE have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFAI or MCSE?

DFAI has higher volatility (4.10%) compared to MCSE (0.00%). In terms of maximum drawdown, DFAI dropped -27.44% vs MCSE's -26.36%.

Which ETF is better, DFAI or MCSE?

On 3-year performance, DFAI leads with 18.65% vs 0.74% for MCSE. On fees, DFAI is cheaper at 0.18% per year. On volatility, MCSE has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAI or MCSE?

Over the 3-year period, DFAI has performed better with a 18.65% return vs 0.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAI or MCSE?

DFAI is cheaper with a 0.18% expense ratio, compared with 0.59% for MCSE.

Which ETF pays a higher dividend yield, DFAI or MCSE?

MCSE has the higher dividend yield at 3.74%, compared with 2.29% for DFAI.

What is the main difference between DFAI and MCSE?

They also come from different issuers: Dimensional and Franklin. Their fees differ too: 0.18% for DFAI and 0.59% for MCSE.

Which has better risk-adjusted returns?

DFAI currently has the higher Sharpe Ratio (1.87 vs 0.46), 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.