DFCFX vs. DFSD

Last updated Jun 23, 2026

DFCFX (DFA Two-Year Fixed Income Portfolio) and DFSD (Dimensional Short-Duration Fixed Income ETF) are both Short-Term Bond funds from Dimensional. Over the past 3 years, DFCFX returned 4.06%/yr vs 5.31%/yr for DFSD. At a 0.39 correlation, their price movements are largely independent. DFCFX charges 0.21%/yr vs 0.16%/yr for DFSD.

Performance

DFCFX vs. DFSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in DFA Two-Year Fixed Income Portfolio (DFCFX) 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, DFCFX achieves a 1.62% return, which is significantly higher than DFSD's 0.67% return.

DFCFX

• 1D: 0.10%
• 1M: 0.21%
• YTD: 1.62%
• 6M: 1.73%
• 1Y: 2.76%
• 3Y*: 4.06%
• 5Y*: 3.83%
• 10Y*: 2.49%

DFSD

• 1D: -0.10%
• 1M: 0.27%
• YTD: 0.67%
• 6M: 0.81%
• 1Y: 3.88%
• 3Y*: 5.31%
• 5Y*: —
• 10Y*: —

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

DFCFX vs. DFSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFCFX DFA Two-Year Fixed Income Portfolio	1.62%	2.28%	5.33%	4.92%	-3.28%	8.82%
DFSD Dimensional Short-Duration Fixed Income ETF	0.67%	6.59%	4.60%	6.09%	-5.87%	-0.05%

Correlation

The correlation between DFCFX and DFSD is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.04
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021	0.39

Over the past year, the correlation between DFCFX and DFSD has dropped to 0.03 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.

Return for Risk

DFCFX vs. DFSD — Risk / Return Rank

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

DFCFX

DFCFX Risk / Return Rank: 68
DFCFX Sharpe Ratio Rank: 77
DFCFX Sortino Ratio Rank: 49
DFCFX Omega Ratio Rank: 99
DFCFX Calmar Ratio Rank: 60
DFCFX Martin Ratio Rank: 54

DFSD

DFSD Risk / Return Rank: 63
DFSD Sharpe Ratio Rank: 63
DFSD Sortino Ratio Rank: 71
DFSD Omega Ratio Rank: 69
DFSD Calmar Ratio Rank: 55
DFSD Martin Ratio Rank: 59

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.

DFCFX vs. DFSD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for DFA Two-Year Fixed Income Portfolio (DFCFX) 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.

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.

	DFCFX	DFSD	Difference
Sharpe ratio: Return per unit of total volatility	2.35	2.02	+0.33
Sortino ratio: Return per unit of downside risk	2.71	3.08	-0.37
Omega ratio: Gain probability vs. loss probability	3.03	1.39	+1.64
Calmar ratio: Return relative to maximum drawdown	2.84	2.66	+0.18
Martin ratio: Return relative to average drawdown	10.24	10.08	+0.16

DFCFX vs. DFSD - Sharpe Ratio Comparison

The current DFCFX Sharpe Ratio is 2.35, which is comparable to the DFSD Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of DFCFX 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.

Drawdowns

DFCFX vs. DFSD - Drawdown Comparison

The maximum DFCFX drawdown since its inception was -4.27%, smaller than the maximum DFSD drawdown of -8.45%. Use the drawdown chart below to compare losses from any high point for DFCFX and DFSD.

Drawdown Indicators

	DFCFX	DFSD	Difference
Max Drawdown Largest peak-to-trough decline	-4.27%	-8.45%	+4.18%
Max Drawdown (1Y) Largest decline over 1 year	-1.03%	-1.47%	+0.44%
Max Drawdown (3Y) Largest decline over 3 years	-1.33%	-1.47%	+0.14%
Max Drawdown (5Y) Largest decline over 5 years	-4.27%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-4.27%	—	—
Current Drawdown Current decline from peak	-0.10%	-0.39%	+0.29%
Average Drawdown Average peak-to-trough decline	-0.26%	-2.05%	+1.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	0.39%	-0.11%

Volatility

DFCFX vs. DFSD - Volatility Comparison

The current volatility for DFA Two-Year Fixed Income Portfolio (DFCFX) is 0.34%, while Dimensional Short-Duration Fixed Income ETF (DFSD) has a volatility of 0.64%. This indicates that DFCFX experiences smaller price fluctuations and is considered to be less risky than DFSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFCFX	DFSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.34%	0.64%	-0.30%
Volatility (6M) Calculated over the trailing 6-month period	0.49%	1.53%	-1.04%
Volatility (1Y) Calculated over the trailing 1-year period	1.24%	1.93%	-0.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.39%	2.77%	+1.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.13%	2.77%	+0.36%

DFCFX vs. DFSD - Expense Ratio Comparison

DFCFX has a 0.21% expense ratio, which is higher than DFSD's 0.16% 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

DFCFX vs. DFSD - Dividend Comparison

DFCFX's dividend yield for the trailing twelve months is around 2.92%, less than DFSD's 3.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFCFX DFA Two-Year Fixed Income Portfolio	2.92%	2.16%	4.90%	3.43%	1.32%	8.29%	0.67%	2.22%	1.87%	1.22%	0.79%	0.53%
DFSD Dimensional Short-Duration Fixed Income ETF	3.97%	4.12%	4.81%	3.89%	2.12%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFCFX and DFSD in my portfolio?

DFCFX and DFSD have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFCFX or DFSD?

DFSD has higher volatility (0.64%) compared to DFCFX (0.34%). In terms of maximum drawdown, DFCFX dropped -4.27% vs DFSD's -8.45%.

Which has better risk-adjusted returns?

DFCFX currently has the higher Sharpe Ratio (2.35 vs 2.02), 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.