DFE vs. IEUS

Last updated Jun 3, 2026

DFE (WisdomTree Europe SmallCap Dividend Fund) and IEUS (iShares MSCI Europe Small-Cap ETF) are both Europe Equities funds - DFE tracks the WisdomTree Europe SmallCap Dividend Index while IEUS tracks the MSCI Europe Small Cap Index. Both are passively managed. Over the past 10 years, DFE returned 6.90%/yr vs 7.57%/yr for IEUS. Their correlation of 0.86 suggests significant overlap in exposure. DFE charges 0.58%/yr vs 0.40%/yr for IEUS.

Performance

DFE vs. IEUS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Europe SmallCap Dividend Fund (DFE) and iShares MSCI Europe Small-Cap ETF (IEUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFE achieves a 6.34% return, which is significantly lower than IEUS's 7.06% return. Over the past 10 years, DFE has underperformed IEUS with an annualized return of 6.90%, while IEUS has yielded a comparatively higher 7.57% annualized return.

DFE

• 1D: -0.35%
• 1M: 0.63%
• YTD: 6.34%
• 6M: 10.73%
• 1Y: 13.82%
• 3Y*: 14.86%
• 5Y*: 4.51%
• 10Y*: 6.90%

IEUS

• 1D: 0.23%
• 1M: 1.91%
• YTD: 7.06%
• 6M: 11.61%
• 1Y: 14.61%
• 3Y*: 14.56%
• 5Y*: 3.25%
• 10Y*: 7.57%

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

DFE vs. IEUS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFE WisdomTree Europe SmallCap Dividend Fund	6.34%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%
IEUS iShares MSCI Europe Small-Cap ETF	7.06%	32.06%	-1.59%	17.34%	-27.07%	15.06%	12.99%	29.72%	-20.17%	35.04%

Correlation

The correlation between DFE and IEUS is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Nov 20, 2007	0.86

The correlation between DFE and IEUS has been stable across timeframes, ranging from 0.86 to 0.94 - a consistent structural relationship.

DFE vs. IEUS - Sectors Allocation Comparison

Sectors	DFE	IEUS
Industrials	25.3%	26.7%
Financial Services	9.7%	15.2%
Consumer Cyclical	9.5%	11.4%
Basic Materials	7.5%	7.5%
Technology	7.1%	7.4%
Energy	6.9%	5.1%
Real Estate	6.3%	8.4%
Communication Services	5.5%	5.0%
Consumer Defensive	4.3%	3.7%
Healthcare	3.5%	7.3%
Utilities	3.5%	2.4%

Return for Risk

DFE vs. IEUS — Risk / Return Rank

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

DFE

DFE Risk / Return Rank: 27
DFE Sharpe Ratio Rank: 26
DFE Sortino Ratio Rank: 26
DFE Omega Ratio Rank: 25
DFE Calmar Ratio Rank: 27
DFE Martin Ratio Rank: 30

IEUS

IEUS Risk / Return Rank: 26
IEUS Sharpe Ratio Rank: 26
IEUS Sortino Ratio Rank: 26
IEUS Omega Ratio Rank: 25
IEUS Calmar Ratio Rank: 25
IEUS Martin Ratio Rank: 29

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. IEUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe SmallCap Dividend Fund (DFE) and iShares MSCI Europe Small-Cap ETF (IEUS). 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.

	DFE	IEUS	Difference
Sharpe ratio Return per unit of total volatility	0.95	0.93	+0.03
Sortino ratio Return per unit of downside risk	1.41	1.39	+0.02
Omega ratio Gain probability vs. loss probability	1.17	1.17	0.00
Calmar ratio Return relative to maximum drawdown	1.35	1.22	+0.13
Martin ratio Return relative to average drawdown	4.66	4.17	+0.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFE vs. IEUS - Sharpe Ratio Comparison

The current DFE Sharpe Ratio is 0.95, which is comparable to the IEUS Sharpe Ratio of 0.93. The chart below compares the historical Sharpe Ratios of DFE and IEUS, 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

	DFE	IEUS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.95	0.93	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.16	+0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	0.37	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.24	+0.06

Drawdowns

DFE vs. IEUS - Drawdown Comparison

The maximum DFE drawdown since its inception was -69.38%, which is greater than IEUS's maximum drawdown of -62.12%. Use the drawdown chart below to compare losses from any high point for DFE and IEUS.

Drawdown Indicators

	DFE	IEUS	Difference
Max Drawdown Largest peak-to-trough decline	-69.38%	-62.12%	-7.26%
Max Drawdown (1Y) Largest decline over 1 year	-11.41%	-12.81%	+1.40%
Max Drawdown (3Y) Largest decline over 3 years	-16.41%	-18.05%	+1.64%
Max Drawdown (5Y) Largest decline over 5 years	-40.34%	-44.86%	+4.52%
Max Drawdown (10Y) Largest decline over 10 years	-49.66%	-44.86%	-4.80%
Current Drawdown Current decline from peak	-2.06%	-0.68%	-1.38%
Average Drawdown Average peak-to-trough decline	-17.74%	-14.92%	-2.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.31%	3.74%	-0.43%

Volatility

DFE vs. IEUS - Volatility Comparison

WisdomTree Europe SmallCap Dividend Fund (DFE) and iShares MSCI Europe Small-Cap ETF (IEUS) have volatilities of 5.20% and 5.45%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFE	IEUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.20%	5.45%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	11.93%	13.01%	-1.08%
Volatility (1Y) Calculated over the trailing 1-year period	14.66%	15.88%	-1.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.01%	20.78%	-1.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.77%	20.51%	-0.74%

DFE vs. IEUS - Expense Ratio Comparison

DFE has a 0.58% expense ratio, which is higher than IEUS's 0.40% expense ratio.

Dividends

DFE vs. IEUS - Dividend Comparison

DFE's dividend yield for the trailing twelve months is around 3.85%, more than IEUS's 2.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	3.85%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
IEUS iShares MSCI Europe Small-Cap ETF	2.98%	3.19%	3.25%	2.97%	3.00%	2.63%	1.21%	4.03%	3.21%	2.13%	2.48%	2.06%

Frequently Asked Questions

Can I hold both DFE and IEUS in my portfolio?

With a correlation of 0.94, DFE and IEUS 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, DFE or IEUS?

IEUS has higher volatility (5.45%) compared to DFE (5.20%). In terms of maximum drawdown, DFE dropped -69.38% vs IEUS's -62.12%.

Which ETF is better, DFE or IEUS?

On 10-year performance, IEUS leads with 7.57% vs 6.90% for DFE. On fees, IEUS is cheaper at 0.40% per year. On volatility, DFE has been the lower-risk option at 5.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFE or IEUS?

Over the 10-year period, IEUS has performed better with a 7.57% return vs 6.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFE or IEUS?

IEUS is cheaper with a 0.40% expense ratio, compared with 0.58% for DFE.

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

DFE has the higher dividend yield at 3.85%, compared with 2.98% for IEUS.

What is the main difference between DFE and IEUS?

DFE tracks WisdomTree Europe SmallCap Dividend Index, while IEUS tracks MSCI Europe Small Cap Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.58% for DFE and 0.40% for IEUS.

Which has better risk-adjusted returns?

DFE currently has the higher Sharpe Ratio (0.95 vs 0.93), 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.