DFAW vs. VTWAX

Last updated Jun 23, 2026

DFAW (Dimensional World Equity ETF) and VTWAX (Vanguard Total World Stock Index Fund Admiral Shares) are both Global Equities funds. DFAW is actively managed, while VTWAX is passively managed. Over the past year, DFAW returned 30.46% vs 29.58% for VTWAX. With a 0.97 correlation, they move nearly in lockstep. DFAW charges 0.25%/yr vs 0.09%/yr for VTWAX.

Performance

DFAW vs. VTWAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional World Equity ETF (DFAW) and Vanguard Total World Stock Index Fund Admiral Shares (VTWAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with DFAW having a 12.92% return and VTWAX slightly lower at 12.42%.

DFAW

• 1D: 0.06%
• 1M: 1.62%
• YTD: 12.92%
• 6M: 12.38%
• 1Y: 30.46%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTWAX

• 1D: 1.21%
• 1M: 1.70%
• YTD: 12.42%
• 6M: 12.22%
• 1Y: 29.58%
• 3Y*: 19.79%
• 5Y*: 11.43%
• 10Y*: —

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

DFAW vs. VTWAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFAW Dimensional World Equity ETF	12.92%	20.62%	15.49%	11.44%
VTWAX Vanguard Total World Stock Index Fund Admiral Shares	12.42%	22.43%	16.43%	11.73%

Correlation

The correlation between DFAW and VTWAX is 0.97 - 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	0.97
Correlation (All Time) Calculated using the full available price history since Sep 27, 2023	0.97

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

DFAW vs. VTWAX - Sectors Allocation Comparison

Sectors	DFAW	VTWAX
Technology	27.0%	31.1%
Financial Services	14.8%	15.2%
Industrials	13.4%	11.4%
Consumer Cyclical	10.1%	9.3%
Healthcare	8.0%	7.9%
Communication Services	7.0%	8.0%
Energy	5.5%	3.8%
Basic Materials	5.0%	4.1%
Consumer Defensive	4.8%	4.5%
Real Estate	2.3%	2.3%
Utilities	2.2%	2.4%

Return for Risk

DFAW vs. VTWAX — Risk / Return Rank

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

DFAW

DFAW Risk / Return Rank: 77
DFAW Sharpe Ratio Rank: 79
DFAW Sortino Ratio Rank: 78
DFAW Omega Ratio Rank: 78
DFAW Calmar Ratio Rank: 71
DFAW Martin Ratio Rank: 79

VTWAX

VTWAX Risk / Return Rank: 68
VTWAX Sharpe Ratio Rank: 69
VTWAX Sortino Ratio Rank: 63
VTWAX Omega Ratio Rank: 64
VTWAX Calmar Ratio Rank: 68
VTWAX Martin Ratio Rank: 75

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.

DFAW vs. VTWAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional World Equity ETF (DFAW) and Vanguard Total World Stock Index Fund Admiral Shares (VTWAX). 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.

	DFAW	VTWAX	Difference
Sharpe ratio: Return per unit of total volatility	2.42	2.23	+0.19
Sortino ratio: Return per unit of downside risk	3.30	3.03	+0.27
Omega ratio: Gain probability vs. loss probability	1.44	1.40	+0.04
Calmar ratio: Return relative to maximum drawdown	3.44	3.03	+0.42
Martin ratio: Return relative to average drawdown	15.01	13.21	+1.80

DFAW vs. VTWAX - Sharpe Ratio Comparison

The current DFAW Sharpe Ratio is 2.42, which is comparable to the VTWAX Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of DFAW and VTWAX, 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

DFAW vs. VTWAX - Drawdown Comparison

The maximum DFAW drawdown since its inception was -16.93%, smaller than the maximum VTWAX drawdown of -34.20%. Use the drawdown chart below to compare losses from any high point for DFAW and VTWAX.

Drawdown Indicators

	DFAW	VTWAX	Difference
Max Drawdown Largest peak-to-trough decline	-16.93%	-34.20%	+17.27%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-9.64%	+0.76%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.43%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-26.40%	—
Current Drawdown Current decline from peak	-0.55%	-0.64%	+0.09%
Average Drawdown Average peak-to-trough decline	-1.70%	-5.28%	+3.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	2.21%	-0.18%

Volatility

DFAW vs. VTWAX - Volatility Comparison

The current volatility for Dimensional World Equity ETF (DFAW) is 4.80%, while Vanguard Total World Stock Index Fund Admiral Shares (VTWAX) has a volatility of 5.27%. This indicates that DFAW experiences smaller price fluctuations and is considered to be less risky than VTWAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAW	VTWAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.80%	5.27%	-0.47%
Volatility (6M) Calculated over the trailing 6-month period	10.26%	10.85%	-0.59%
Volatility (1Y) Calculated over the trailing 1-year period	12.68%	13.12%	-0.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.57%	15.84%	-1.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.57%	18.23%	-3.66%

DFAW vs. VTWAX - Expense Ratio Comparison

DFAW has a 0.25% expense ratio, which is higher than VTWAX's 0.09% 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

DFAW vs. VTWAX - Dividend Comparison

DFAW's dividend yield for the trailing twelve months is around 1.54%, which matches VTWAX's 1.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
DFAW Dimensional World Equity ETF	1.54%	1.71%	1.47%	0.42%	0.00%	0.00%	0.00%	0.00%
VTWAX Vanguard Total World Stock Index Fund Admiral Shares	1.55%	1.80%	1.92%	2.06%	2.17%	1.79%	1.64%	2.28%

Frequently Asked Questions

Can I hold both DFAW and VTWAX in my portfolio?

With a correlation of 0.97, DFAW and VTWAX 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, DFAW or VTWAX?

VTWAX has higher volatility (5.27%) compared to DFAW (4.80%). In terms of maximum drawdown, DFAW dropped -16.93% vs VTWAX's -34.20%.

Which has better risk-adjusted returns?

DFAW currently has the higher Sharpe Ratio (2.42 vs 2.23), 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.