DFCF vs. DFNM

Last updated Jun 3, 2026

DFCF (Dimensional Core Fixed Income ETF) and DFNM (Dimensional National Municipal Bond ETF) are both exchange-traded funds - DFCF is a Intermediate Core Bond fund actively managed by Dimensional, while DFNM is a Municipal Bonds fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFCF returned 4.86%/yr vs 3.39%/yr for DFNM. A 0.63 correlation means they provide meaningful diversification when combined. Both charge a 0.17% expense ratio.

Performance

DFCF vs. DFNM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Core Fixed Income ETF (DFCF) and Dimensional National Municipal Bond ETF (DFNM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFCF achieves a 0.56% return, which is significantly lower than DFNM's 1.27% return.

DFCF

• 1D: 0.00%
• 1M: 0.24%
• YTD: 0.56%
• 6M: 0.61%
• 1Y: 5.90%
• 3Y*: 4.86%
• 5Y*: —
• 10Y*: —

DFNM

• 1D: 0.08%
• 1M: 0.38%
• YTD: 1.27%
• 6M: 1.66%
• 1Y: 5.31%
• 3Y*: 3.39%
• 5Y*: —
• 10Y*: —

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

DFCF vs. DFNM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFCF Dimensional Core Fixed Income ETF	0.56%	7.89%	1.86%	6.94%	-14.48%	0.23%
DFNM Dimensional National Municipal Bond ETF	1.27%	3.87%	1.19%	3.97%	-4.02%	0.47%

Correlation

The correlation between DFCF and DFNM is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.63

The correlation between DFCF and DFNM has been stable across timeframes, ranging from 0.58 to 0.65 - a consistent structural relationship.

Return for Risk

DFCF vs. DFNM — Risk / Return Rank

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

DFCF

DFCF Risk / Return Rank: 41
DFCF Sharpe Ratio Rank: 42
DFCF Sortino Ratio Rank: 43
DFCF Omega Ratio Rank: 40
DFCF Calmar Ratio Rank: 40
DFCF Martin Ratio Rank: 40

DFNM

DFNM Risk / Return Rank: 77
DFNM Sharpe Ratio Rank: 88
DFNM Sortino Ratio Rank: 91
DFNM Omega Ratio Rank: 94
DFNM Calmar Ratio Rank: 54
DFNM Martin Ratio Rank: 56

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.

DFCF vs. DFNM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Core Fixed Income ETF (DFCF) and Dimensional National Municipal Bond ETF (DFNM). 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.

	DFCF	DFNM	Difference
Sharpe ratio Return per unit of total volatility	1.49	3.04	-1.55
Sortino ratio Return per unit of downside risk	2.19	4.41	-2.22
Omega ratio Gain probability vs. loss probability	1.26	1.69	-0.43
Calmar ratio Return relative to maximum drawdown	2.06	2.77	-0.71
Martin ratio Return relative to average drawdown	6.31	10.07	-3.76
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFCF vs. DFNM - Sharpe Ratio Comparison

The current DFCF Sharpe Ratio is 1.49, which is lower than the DFNM Sharpe Ratio of 3.04. The chart below compares the historical Sharpe Ratios of DFCF and DFNM, 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

	DFCF	DFNM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	3.04	-1.55
Sharpe Ratio (All Time) Calculated using the full available price history	0.04	0.57	-0.53

Drawdowns

DFCF vs. DFNM - Drawdown Comparison

The maximum DFCF drawdown since its inception was -19.56%, which is greater than DFNM's maximum drawdown of -6.99%. Use the drawdown chart below to compare losses from any high point for DFCF and DFNM.

Drawdown Indicators

	DFCF	DFNM	Difference
Max Drawdown Largest peak-to-trough decline	-19.56%	-6.99%	-12.57%
Max Drawdown (1Y) Largest decline over 1 year	-2.79%	-1.84%	-0.95%
Max Drawdown (3Y) Largest decline over 3 years	-5.05%	-2.82%	-2.23%
Current Drawdown Current decline from peak	-1.27%	-0.38%	-0.89%
Average Drawdown Average peak-to-trough decline	-8.04%	-1.96%	-6.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.91%	0.50%	+0.41%

Volatility

DFCF vs. DFNM - Volatility Comparison

Dimensional Core Fixed Income ETF (DFCF) has a higher volatility of 1.38% compared to Dimensional National Municipal Bond ETF (DFNM) at 0.59%. This indicates that DFCF's price experiences larger fluctuations and is considered to be riskier than DFNM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFCF	DFNM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	0.59%	+0.79%
Volatility (6M) Calculated over the trailing 6-month period	2.92%	1.29%	+1.63%
Volatility (1Y) Calculated over the trailing 1-year period	3.98%	1.77%	+2.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.47%	2.54%	+3.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.47%	2.54%	+3.93%

DFCF vs. DFNM - Expense Ratio Comparison

Both DFCF and DFNM have an expense ratio of 0.17%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

DFCF vs. DFNM - Dividend Comparison

DFCF's dividend yield for the trailing twelve months is around 4.30%, more than DFNM's 2.89% yield.

Position	TTM	2025	2024	2023	2022	2021
DFCF Dimensional Core Fixed Income ETF	4.30%	4.48%	4.61%	4.51%	3.27%	0.16%
DFNM Dimensional National Municipal Bond ETF	2.89%	2.94%	2.74%	2.39%	1.16%	0.05%

Frequently Asked Questions

Can I hold both DFCF and DFNM in my portfolio?

DFCF and DFNM have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFCF or DFNM?

DFCF has higher volatility (1.38%) compared to DFNM (0.59%). In terms of maximum drawdown, DFCF dropped -19.56% vs DFNM's -6.99%.

Which ETF is better, DFCF or DFNM?

On 3-year performance, DFCF leads with 4.86% vs 3.39% for DFNM. Both ETFs have the same 0.17% expense ratio. On volatility, DFNM has been the lower-risk option at 0.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFCF or DFNM?

Over the 3-year period, DFCF has performed better with a 4.86% return vs 3.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFCF or DFNM?

DFCF and DFNM have the same expense ratio: 0.17% per year.

Which ETF pays a higher dividend yield, DFCF or DFNM?

DFCF has the higher dividend yield at 4.30%, compared with 2.89% for DFNM.

What is the main difference between DFCF and DFNM?

DFCF is categorized as Intermediate Core Bond, while DFNM is Municipal Bonds.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (3.04 vs 1.49), 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.