DFAI vs. VEU

Last updated Jun 26, 2026

DFAI (Dimensional International Core Equity Market ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds. DFAI is actively managed, while VEU is passively managed. Over the past 5 years, DFAI returned 9.63%/yr vs 8.69%/yr for VEU. With a 0.96 correlation, they move nearly in lockstep. DFAI charges 0.18%/yr vs 0.04%/yr for VEU.

Performance

DFAI vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional International Core Equity Market ETF (DFAI) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAI achieves a 9.26% return, which is significantly lower than VEU's 13.93% return.

DFAI

• 1D: 0.76%
• 1M: -0.98%
• YTD: 9.26%
• 6M: 8.66%
• 1Y: 24.42%
• 3Y*: 18.32%
• 5Y*: 9.63%
• 10Y*: —

VEU

• 1D: 0.93%
• 1M: -0.49%
• YTD: 13.93%
• 6M: 13.65%
• 1Y: 29.59%
• 3Y*: 19.48%
• 5Y*: 8.69%
• 10Y*: 10.70%

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

DFAI vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DFAI Dimensional International Core Equity Market ETF	9.26%	34.04%	4.68%	17.60%	-12.95%	13.86%	5.34%
VEU Vanguard FTSE All-World ex-US ETF	13.93%	32.35%	5.56%	15.84%	-15.58%	8.27%	5.92%

Correlation

The correlation between DFAI and VEU is 0.95 - 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Nov 18, 2020	0.96

The correlation between DFAI and VEU has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

DFAI vs. VEU - Sectors Allocation Comparison

Sectors	DFAI	VEU
Financial Services	26.9%	22.6%
Industrials	17.2%	15.0%
Healthcare	11.4%	6.7%
Basic Materials	10.8%	7.1%
Technology	7.8%	21.6%
Consumer Cyclical	5.8%	8.0%
Consumer Defensive	5.3%	4.9%
Energy	4.7%	4.7%
Communication Services	4.3%	4.5%
Utilities	4.2%	3.0%
Real Estate	1.5%	1.9%

Return for Risk

DFAI vs. VEU — Risk / Return Rank

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

DFAI

DFAI Risk / Return Rank: 56
DFAI Sharpe Ratio Rank: 58
DFAI Sortino Ratio Rank: 58
DFAI Omega Ratio Rank: 57
DFAI Calmar Ratio Rank: 52
DFAI Martin Ratio Rank: 57

VEU

VEU Risk / Return Rank: 63
VEU Sharpe Ratio Rank: 64
VEU Sortino Ratio Rank: 62
VEU Omega Ratio Rank: 65
VEU Calmar Ratio Rank: 61
VEU Martin Ratio Rank: 63

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.

DFAI vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional International Core Equity Market ETF (DFAI) and Vanguard FTSE All-World ex-US ETF (VEU). 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	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.69	1.81	-0.13
Sortino ratio: Return per unit of downside risk	2.37	2.48	-0.11
Omega ratio: Gain probability vs. loss probability	1.31	1.34	-0.03
Calmar ratio: Return relative to maximum drawdown	2.24	2.60	-0.36
Martin ratio: Return relative to average drawdown	8.71	9.92	-1.21

DFAI vs. VEU - Sharpe Ratio Comparison

The current DFAI Sharpe Ratio is 1.69, which is comparable to the VEU Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of DFAI and VEU, 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. VEU - Drawdown Comparison

The maximum DFAI drawdown since its inception was -27.44%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for DFAI and VEU.

Drawdown Indicators

	DFAI	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-27.44%	-61.52%	+34.08%
Max Drawdown (1Y) Largest decline over 1 year	-10.95%	-11.43%	+0.48%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-13.69%	+0.44%
Max Drawdown (5Y) Largest decline over 5 years	-27.44%	-29.14%	+1.70%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.98%	—
Current Drawdown Current decline from peak	-1.52%	-2.28%	+0.76%
Average Drawdown Average peak-to-trough decline	-5.08%	-13.10%	+8.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	2.99%	-0.18%

Volatility

DFAI vs. VEU - Volatility Comparison

The current volatility for Dimensional International Core Equity Market ETF (DFAI) is 4.83%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 6.87%. This indicates that DFAI experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAI	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.83%	6.87%	-2.04%
Volatility (6M) Calculated over the trailing 6-month period	12.39%	14.48%	-2.09%
Volatility (1Y) Calculated over the trailing 1-year period	14.56%	16.39%	-1.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.99%	16.30%	-0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.73%	17.08%	-1.35%

DFAI vs. VEU - Expense Ratio Comparison

DFAI has a 0.18% expense ratio, which is higher than VEU's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DFAI vs. VEU - Dividend Comparison

DFAI's dividend yield for the trailing twelve months is around 2.36%, less than VEU's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAI Dimensional International Core Equity Market ETF	2.36%	2.45%	2.72%	2.64%	2.72%	2.06%	0.09%	0.00%	0.00%	0.00%	0.00%	0.00%
VEU Vanguard FTSE All-World ex-US ETF	2.54%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both DFAI and VEU in my portfolio?

With a correlation of 0.95, DFAI and VEU 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, DFAI or VEU?

VEU has higher volatility (6.87%) compared to DFAI (4.83%). In terms of maximum drawdown, DFAI dropped -27.44% vs VEU's -61.52%.

Which ETF is better, DFAI or VEU?

On 5-year performance, DFAI leads with 9.63% vs 8.69% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, DFAI has been the lower-risk option at 4.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAI or VEU?

Over the 5-year period, DFAI has performed better with a 9.63% return vs 8.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAI or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.18% for DFAI.

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

VEU has the higher dividend yield at 2.54%, compared with 2.36% for DFAI.

What is the main difference between DFAI and VEU?

They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.18% for DFAI and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.81 vs 1.69), 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.