DFAU vs. DFSD

Last updated Jun 4, 2026

DFAU (Dimensional US Core Equity Market ETF) and DFSD (Dimensional Short-Duration Fixed Income ETF) are both exchange-traded funds - DFAU is a Large Cap Blend Equities fund actively managed by Dimensional, while DFSD is a Short-Term Bond fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFAU returned 21.70%/yr vs 5.33%/yr for DFSD. At a 0.22 correlation, their price movements are largely independent. DFAU charges 0.12%/yr vs 0.16%/yr for DFSD.

Performance

DFAU vs. DFSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional US Core Equity Market ETF (DFAU) and Dimensional Short-Duration Fixed Income ETF (DFSD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAU achieves a 11.32% return, which is significantly higher than DFSD's 0.62% return.

DFAU

• 1D: -0.67%
• 1M: 4.93%
• YTD: 11.32%
• 6M: 11.27%
• 1Y: 28.49%
• 3Y*: 21.70%
• 5Y*: 13.05%
• 10Y*: —

DFSD

• 1D: -0.13%
• 1M: 0.23%
• YTD: 0.62%
• 6M: 0.86%
• 1Y: 4.23%
• 3Y*: 5.33%
• 5Y*: —
• 10Y*: —

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

DFAU vs. DFSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFAU Dimensional US Core Equity Market ETF	11.32%	16.78%	23.17%	24.79%	-16.99%	0.52%
DFSD Dimensional Short-Duration Fixed Income ETF	0.62%	6.59%	4.60%	6.09%	-5.87%	-0.02%

Correlation

The correlation between DFAU and DFSD is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.22

Return for Risk

DFAU vs. DFSD — Risk / Return Rank

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

DFAU

DFAU Risk / Return Rank: 71
DFAU Sharpe Ratio Rank: 71
DFAU Sortino Ratio Rank: 70
DFAU Omega Ratio Rank: 70
DFAU Calmar Ratio Rank: 66
DFAU Martin Ratio Rank: 77

DFSD

DFSD Risk / Return Rank: 67
DFSD Sharpe Ratio Rank: 66
DFSD Sortino Ratio Rank: 76
DFSD Omega Ratio Rank: 73
DFSD Calmar Ratio Rank: 58
DFSD Martin Ratio Rank: 62

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.

DFAU vs. DFSD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional US Core Equity Market ETF (DFAU) and Dimensional Short-Duration Fixed Income ETF (DFSD). 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.

	DFAU	DFSD	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.24	+0.14
Sortino ratio: Return per unit of downside risk	3.24	3.44	-0.20
Omega ratio: Gain probability vs. loss probability	1.43	1.44	-0.01
Calmar ratio: Return relative to maximum drawdown	3.30	2.90	+0.41
Martin ratio: Return relative to average drawdown	15.10	11.21	+3.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFAU vs. DFSD - Sharpe Ratio Comparison

The current DFAU Sharpe Ratio is 2.38, which is comparable to the DFSD Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of DFAU and DFSD, 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

	DFAU	DFSD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	2.24	+0.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.94	0.91	+0.03

Drawdowns

DFAU vs. DFSD - Drawdown Comparison

The maximum DFAU drawdown since its inception was -23.61%, which is greater than DFSD's maximum drawdown of -8.45%. Use the drawdown chart below to compare losses from any high point for DFAU and DFSD.

Drawdown Indicators

	DFAU	DFSD	Difference
Max Drawdown Largest peak-to-trough decline	-23.61%	-8.45%	-15.16%
Max Drawdown (1Y) Largest decline over 1 year	-8.67%	-1.47%	-7.20%
Max Drawdown (3Y) Largest decline over 3 years	-19.36%	-1.47%	-17.89%
Max Drawdown (5Y) Largest decline over 5 years	-23.61%	—	—
Current Drawdown Current decline from peak	-0.67%	-0.44%	-0.23%
Average Drawdown Average peak-to-trough decline	-4.99%	-2.07%	-2.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	0.38%	+1.51%

Volatility

DFAU vs. DFSD - Volatility Comparison

Dimensional US Core Equity Market ETF (DFAU) has a higher volatility of 2.95% compared to Dimensional Short-Duration Fixed Income ETF (DFSD) at 0.64%. This indicates that DFAU's price experiences larger fluctuations and is considered to be riskier than DFSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAU	DFSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.95%	0.64%	+2.31%
Volatility (6M) Calculated over the trailing 6-month period	9.04%	1.47%	+7.57%
Volatility (1Y) Calculated over the trailing 1-year period	12.06%	1.90%	+10.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.02%	2.78%	+14.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.73%	2.78%	+13.95%

DFAU vs. DFSD - Expense Ratio Comparison

DFAU has a 0.12% expense ratio, which is lower than DFSD's 0.16% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DFAU vs. DFSD - Dividend Comparison

DFAU's dividend yield for the trailing twelve months is around 0.90%, less than DFSD's 3.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
DFAU Dimensional US Core Equity Market ETF	0.90%	0.95%	1.10%	1.29%	1.40%	1.00%	0.13%
DFSD Dimensional Short-Duration Fixed Income ETF	3.98%	4.12%	4.81%	3.89%	2.12%	0.11%	0.00%

Frequently Asked Questions

Can I hold both DFAU and DFSD in my portfolio?

DFAU and DFSD have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFAU or DFSD?

DFAU has higher volatility (2.95%) compared to DFSD (0.64%). In terms of maximum drawdown, DFAU dropped -23.61% vs DFSD's -8.45%.

Which ETF is better, DFAU or DFSD?

On 3-year performance, DFAU leads with 21.70% vs 5.33% for DFSD. On fees, DFAU is cheaper at 0.12% per year. On volatility, DFSD has been the lower-risk option at 0.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAU or DFSD?

Over the 3-year period, DFAU has performed better with a 21.70% return vs 5.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAU or DFSD?

DFAU is cheaper with a 0.12% expense ratio, compared with 0.16% for DFSD.

Which ETF pays a higher dividend yield, DFAU or DFSD?

DFSD has the higher dividend yield at 3.98%, compared with 0.90% for DFAU.

What is the main difference between DFAU and DFSD?

DFAU is categorized as Large Cap Blend Equities, while DFSD is Short-Term Bond. Their fees differ too: 0.12% for DFAU and 0.16% for DFSD.

Which has better risk-adjusted returns?

DFAU currently has the higher Sharpe Ratio (2.38 vs 2.24), 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.