DFE vs. ACLO

Last updated Jun 24, 2026

DFE (WisdomTree Europe SmallCap Dividend Fund) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - DFE is a Europe Equities fund tracking the WisdomTree Europe SmallCap Dividend Index, while ACLO is a CLO fund actively managed by TCW. DFE is passively managed, while ACLO is actively managed. Over the past year, DFE returned 10.63% vs 5.27% for ACLO. At a correlation of -0.11, they often move in opposite directions. DFE charges 0.58%/yr vs 0.20%/yr for ACLO.

Performance

DFE vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Europe SmallCap Dividend Fund (DFE) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with DFE having a 2.33% return and ACLO slightly higher at 2.44%.

DFE

• 1D: -1.30%
• 1M: -3.73%
• YTD: 2.33%
• 6M: 3.37%
• 1Y: 10.63%
• 3Y*: 14.30%
• 5Y*: 4.37%
• 10Y*: 7.89%

ACLO

• 1D: 0.03%
• 1M: 0.44%
• YTD: 2.44%
• 6M: 2.55%
• 1Y: 5.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFE vs. ACLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DFE WisdomTree Europe SmallCap Dividend Fund	2.33%	32.85%	-0.48%
ACLO TCW AAA CLO ETF	2.44%	5.32%	0.81%

Correlation

The correlation between DFE and ACLO is -0.18, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.18
Correlation (All Time) Calculated using the full available price history since Nov 18, 2024	-0.11

Return for Risk

DFE vs. ACLO — Risk / Return Rank

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

DFE

DFE Risk / Return Rank: 22
DFE Sharpe Ratio Rank: 21
DFE Sortino Ratio Rank: 21
DFE Omega Ratio Rank: 20
DFE Calmar Ratio Rank: 21
DFE Martin Ratio Rank: 25

ACLO

ACLO Risk / Return Rank: 99
ACLO Sharpe Ratio Rank: 99
ACLO Sortino Ratio Rank: 99
ACLO Omega Ratio Rank: 99
ACLO Calmar Ratio Rank: 99
ACLO Martin Ratio Rank: 99

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.

DFE vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe SmallCap Dividend Fund (DFE) and TCW AAA CLO ETF (ACLO). 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.

	DFE	ACLO	Difference
Sharpe ratio: Return per unit of total volatility	0.71	7.28	-6.57
Sortino ratio: Return per unit of downside risk	1.10	15.06	-13.96
Omega ratio: Gain probability vs. loss probability	1.13	3.42	-2.29
Calmar ratio: Return relative to maximum drawdown	0.94	19.77	-18.83
Martin ratio: Return relative to average drawdown	3.14	164.39	-161.25

DFE vs. ACLO - Sharpe Ratio Comparison

The current DFE Sharpe Ratio is 0.71, which is lower than the ACLO Sharpe Ratio of 7.28. The chart below compares the historical Sharpe Ratios of DFE and ACLO, 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

DFE vs. ACLO - Drawdown Comparison

The maximum DFE drawdown since its inception was -69.38%, which is greater than ACLO's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for DFE and ACLO.

Drawdown Indicators

	DFE	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	-69.38%	-1.01%	-68.37%
Max Drawdown (1Y) Largest decline over 1 year	-11.41%	-0.27%	-11.14%
Max Drawdown (3Y) Largest decline over 3 years	-16.41%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-40.34%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-49.66%	—	—
Current Drawdown Current decline from peak	-5.74%	0.00%	-5.74%
Average Drawdown Average peak-to-trough decline	-17.69%	-0.04%	-17.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	0.03%	+3.37%

Volatility

DFE vs. ACLO - Volatility Comparison

WisdomTree Europe SmallCap Dividend Fund (DFE) has a higher volatility of 4.86% compared to TCW AAA CLO ETF (ACLO) at 0.19%. This indicates that DFE's price experiences larger fluctuations and is considered to be riskier than ACLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFE	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	0.19%	+4.67%
Volatility (6M) Calculated over the trailing 6-month period	12.62%	0.58%	+12.04%
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	0.73%	+14.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.07%	1.07%	+18.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.37%	1.07%	+18.30%

DFE vs. ACLO - Expense Ratio Comparison

DFE has a 0.58% expense ratio, which is higher than ACLO's 0.20% expense ratio.

Dividends

DFE vs. ACLO - Dividend Comparison

DFE's dividend yield for the trailing twelve months is around 4.00%, less than ACLO's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACLO TCW AAA CLO ETF	4.90%	4.87%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
DFE WisdomTree Europe SmallCap Dividend Fund	4.00%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%

Frequently Asked Questions

Can I hold both DFE and ACLO in my portfolio?

DFE and ACLO have a correlation of -0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFE or ACLO?

DFE has higher volatility (4.86%) compared to ACLO (0.19%). In terms of maximum drawdown, DFE dropped -69.38% vs ACLO's -1.01%.

Which ETF is better, DFE or ACLO?

On 1-year performance, DFE leads with 10.63% vs 5.27% for ACLO. On fees, ACLO is cheaper at 0.20% per year. On volatility, ACLO has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFE or ACLO?

Over the 1-year period, DFE has performed better with a 10.63% return vs 5.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFE or ACLO?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.58% for DFE.

Which ETF pays a higher dividend yield, DFE or ACLO?

ACLO has the higher dividend yield at 4.90%, compared with 4.00% for DFE.

What is the main difference between DFE and ACLO?

DFE is categorized as Europe Equities, while ACLO is CLO. They also come from different issuers: WisdomTree and TCW. Their fees differ too: 0.58% for DFE and 0.20% for ACLO.

Which has better risk-adjusted returns?

ACLO currently has the higher Sharpe Ratio (7.28 vs 0.71), 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.