DFAI vs. VGSH
DFAI (Dimensional International Core Equity Market ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - DFAI is a Foreign Large Cap Equities fund actively managed by Dimensional, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. DFAI is actively managed, while VGSH is passively managed. Over the past 5 years, DFAI returned 9.46%/yr vs 1.83%/yr for VGSH. At a 0.15 correlation, their price movements are largely independent. DFAI charges 0.18%/yr vs 0.03%/yr for VGSH.
Performance
DFAI vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, DFAI achieves a 10.05% return, which is significantly higher than VGSH's 0.57% return.
DFAI
- 1D
- 0.43%
- 1M
- 2.45%
- YTD
- 10.05%
- 6M
- 11.52%
- 1Y
- 25.01%
- 3Y*
- 17.84%
- 5Y*
- 9.46%
- 10Y*
- —
VGSH
- 1D
- -0.03%
- 1M
- 0.28%
- YTD
- 0.57%
- 6M
- 0.83%
- 1Y
- 3.36%
- 3Y*
- 4.25%
- 5Y*
- 1.83%
- 10Y*
- 1.73%
DFAI vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
DFAI Dimensional International Core Equity Market ETF | 10.05% | 34.04% | 4.68% | 17.60% | -12.95% | 13.86% | 5.34% |
VGSH Vanguard Short-Term Treasury ETF | 0.57% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 0.09% |
Correlation
The correlation between DFAI and VGSH is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (All Time) Calculated using the full available price history since Nov 18, 2020 | 0.15 |
The correlation between DFAI and VGSH shifts across timeframes, from 0.15 (all time) to 0.32 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
DFAI vs. VGSH — Risk / Return Rank
DFAI
VGSH
DFAI vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional International Core Equity Market ETF (DFAI) and Vanguard Short-Term Treasury ETF (VGSH). 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 | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.98 | ||
| Sortino ratioReturn per unit of downside risk | -1.99 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.55 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 2.18 | 3.76 | -1.58 |
| Martin ratioReturn relative to average drawdown | 8.47 | 14.67 | -6.20 |
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Drawdowns
DFAI vs. VGSH - Drawdown Comparison
The maximum DFAI drawdown since its inception was -27.44%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for DFAI and VGSH.
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Drawdown Indicators
| DFAI | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.44% | -5.70% | -21.74% |
Max Drawdown (1Y)Largest decline over 1 year | -10.95% | -0.88% | -10.07% |
Max Drawdown (3Y)Largest decline over 3 years | -13.25% | -0.97% | -12.28% |
Max Drawdown (5Y)Largest decline over 5 years | -27.44% | -5.66% | -21.78% |
Max Drawdown (10Y)Largest decline over 10 years | — | -5.70% | — |
Current DrawdownCurrent decline from peak | -0.80% | -0.21% | -0.59% |
Average DrawdownAverage peak-to-trough decline | -5.11% | -0.60% | -4.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.82% | 0.23% | +2.59% |
Volatility
DFAI vs. VGSH - Volatility Comparison
Dimensional International Core Equity Market ETF (DFAI) has a higher volatility of 5.12% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.37%. This indicates that DFAI's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DFAI | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.12% | 0.37% | +4.75% |
Volatility (6M)Calculated over the trailing 6-month period | 12.29% | 0.90% | +11.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.60% | 1.28% | +13.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.01% | 1.97% | +14.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.75% | 1.58% | +14.17% |
DFAI vs. VGSH - Expense Ratio Comparison
DFAI has a 0.18% expense ratio, which is higher than VGSH's 0.03% 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. VGSH - Dividend Comparison
DFAI's dividend yield for the trailing twelve months is around 2.24%, less than VGSH's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFAI Dimensional International Core Equity Market ETF | 2.24% | 2.45% | 2.72% | 2.64% | 2.72% | 2.06% | 0.09% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VGSH Vanguard Short-Term Treasury ETF | 3.87% | 4.00% | 4.18% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.84% | 0.69% |
Frequently Asked Questions
DFAI and VGSH have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DFAI has higher volatility (5.12%) compared to VGSH (0.37%). In terms of maximum drawdown, DFAI dropped -27.44% vs VGSH's -5.70%.
On 5-year performance, DFAI leads with 9.46% vs 1.83% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VGSH has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, DFAI has performed better with a 9.46% return vs 1.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH is cheaper with a 0.03% expense ratio, compared with 0.18% for DFAI.
VGSH has the higher dividend yield at 3.87%, compared with 2.24% for DFAI.
DFAI is categorized as Foreign Large Cap Equities, while VGSH is Government Bonds. They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.18% for DFAI and 0.03% for VGSH.
VGSH currently has the higher Sharpe Ratio (2.61 vs 1.63), 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.
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