DFE vs. DEM

Last updated Aug 2, 2026

DFE (WisdomTree Europe SmallCap Dividend Fund) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both exchange-traded funds - DFE is a Europe Equities fund tracking the WisdomTree Europe SmallCap Dividend Index, while DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index. Both are passively managed. Over the past 10 years, DFE returned 7.77%/yr vs 9.26%/yr for DEM. Their 0.69 correlation means they have sometimes moved together and sometimes differently. DFE charges 0.58%/yr vs 0.63%/yr for DEM.

Performance

DFE vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Europe SmallCap Dividend Fund (DFE) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFE achieves a 7.42% return, which is significantly lower than DEM's 17.08% return. Over the past 10 years, DFE has underperformed DEM with an annualized return of 7.77%, while DEM has yielded a comparatively higher 9.26% annualized return.

DFE

• 1D: -0.38%
• 1M: 3.01%
• 6M: 3.22%
• YTD: 7.42%
• 1Y: 14.13%
• 3Y*: 14.41%
• 5Y*: 4.54%
• 10Y*: 7.77%
• ALL TIME*: 6.45%

DEM

• 1D: 0.19%
• 1M: 0.60%
• 6M: 10.28%
• YTD: 17.08%
• 1Y: 24.73%
• 3Y*: 15.88%
• 5Y*: 10.19%
• 10Y*: 9.26%
• ALL TIME*: 4.92%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DEM WisdomTree Emerging Markets Equity Income Fund	$8.90M	$9.48M	$10.87M
DFE WisdomTree Europe SmallCap Dividend Fund	$212.25K	$423.32K	$471.65K

DFE vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFE WisdomTree Europe SmallCap Dividend Fund	7.42%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%
DEM WisdomTree Emerging Markets Equity Income Fund	17.08%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%

Correlation

The correlation between DFE and DEM is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.70
Correlation (3Y) Balances recent behavior with more history.	0.69
Correlation (5Y) Shows whether the relationship held over a longer period.	0.70
Correlation (10Y) Provides a long-term view across more market conditions.	0.68
Correlation (All Time) Calculated using the full available price history since Jul 13, 2007	0.69

The correlation between DFE and DEM has been stable across timeframes, ranging from 0.68 to 0.70 - a consistent structural relationship.

DFE vs. DEM - Sectors Allocation Comparison

Sectors	DFE	DEM
Industrials	25.7%	8.9%
Financial Services	10.0%	21.9%
Consumer Cyclical	9.4%	5.4%
Basic Materials	7.7%	3.7%
Energy	6.8%	6.2%
Technology	6.8%	17.5%
Real Estate	6.5%	2.9%
Communication Services	5.8%	3.0%
Consumer Defensive	3.5%	5.8%
Utilities	3.5%	3.0%
Healthcare	3.4%	0.6%

Return for Risk

DFE vs. DEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DFE

DFE Risk / Return Rank: 36
DFE Sharpe Ratio Rank: 37
DFE Sortino Ratio Rank: 37
DFE Omega Ratio Rank: 35
DFE Calmar Ratio Rank: 36
DFE Martin Ratio Rank: 38

DEM

DEM Risk / Return Rank: 75
DEM Sharpe Ratio Rank: 73
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 72
DEM Calmar Ratio Rank: 84
DEM Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DFE vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe SmallCap Dividend Fund (DFE) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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	DEM	Difference
Sharpe ratio: Return per unit of total volatility	0.92	1.66	-0.74
Sortino ratio: Return per unit of downside risk	1.38	2.31	-0.93
Omega ratio: Gain probability vs. loss probability	1.17	1.30	-0.13
Calmar ratio: Return relative to maximum drawdown	1.21	3.15	-1.93
Martin ratio: Return relative to average drawdown	3.88	9.50	-5.62

DFE vs. DEM - Sharpe Ratio Comparison

The current DFE Sharpe Ratio is 0.92, which is lower than the DEM Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of DFE and DEM, 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. DEM - Drawdown Comparison

The maximum DFE drawdown since its inception was -69.38%, which is greater than DEM's maximum drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for DFE and DEM.

Drawdown Indicators

	DFE	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-69.38%	-51.85%	-17.53%
Max Drawdown (1Y) Largest decline over 1 year	-11.41%	-7.89%	-3.52%
Max Drawdown (3Y) Largest decline over 3 years	-13.86%	-15.64%	+1.78%
Max Drawdown (5Y) Largest decline over 5 years	-40.34%	-27.18%	-13.16%
Max Drawdown (10Y) Largest decline over 10 years	-49.66%	-37.79%	-11.87%
Current Drawdown Current decline from peak	-1.05%	-3.57%	+2.52%
Average Drawdown Average peak-to-trough decline	-17.62%	-12.82%	-4.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.56%	2.61%	+0.95%

Volatility

DFE vs. DEM - Volatility Comparison

The current volatility for WisdomTree Europe SmallCap Dividend Fund (DFE) is 4.06%, while WisdomTree Emerging Markets Equity Income Fund (DEM) has a volatility of 5.12%. This indicates that DFE experiences smaller price fluctuations and is considered to be less risky than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFE	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.06%	5.12%	-1.06%
Volatility (6M) Calculated over the trailing 6-month period	12.82%	13.28%	-0.46%
Volatility (1Y) Calculated over the trailing 1-year period	15.15%	15.02%	+0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.04%	15.60%	+3.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.20%	17.85%	+1.35%

DFE vs. DEM - Expense Ratio Comparison

DFE has a 0.58% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

DFE vs. DEM - Dividend Comparison

DFE's dividend yield for the trailing twelve months is around 3.95%, less than DEM's 4.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.18%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
DFE WisdomTree Europe SmallCap Dividend Fund	3.95%	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 DEM in my portfolio?

DFE and DEM have a correlation of 0.70, 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 DEM?

DEM has higher volatility (5.12%) compared to DFE (4.06%). In terms of maximum drawdown, DFE dropped -69.38% vs DEM's -51.85%.

Which ETF is better, DFE or DEM?

On 10-year performance, DEM leads with 9.26% vs 7.77% for DFE. On fees, DFE is cheaper at 0.58% per year. On volatility, DFE has been the lower-risk option at 4.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFE or DEM?

Over the 10-year period, DEM has performed better with a 9.26% return vs 7.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFE or DEM?

DFE is cheaper with a 0.58% expense ratio, compared with 0.63% for DEM.

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

DEM has the higher dividend yield at 4.18%, compared with 3.95% for DFE.

What is the main difference between DFE and DEM?

DFE is categorized as Europe Equities, while DEM is Dividend. DFE tracks WisdomTree Europe SmallCap Dividend Index, while DEM tracks WisdomTree Emerging Markets Equity Income Index. Their fees differ too: 0.58% for DFE and 0.63% for DEM.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (1.66 vs 0.92), 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.