DFEM vs. DEM

Last updated Aug 2, 2026

DFEM (Dimensional Emerging Markets Core Equity 2 ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both exchange-traded funds - DFEM is a Emerging Markets Equities fund actively managed by Dimensional, while DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index. DFEM is actively managed, while DEM is passively managed. Over the past 3 years, DFEM returned 17.44%/yr vs 15.88%/yr for DEM. Their correlation of 0.89 means they have usually moved in the same direction. DFEM charges 0.39%/yr vs 0.63%/yr for DEM.

Performance

DFEM vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Core Equity 2 ETF (DFEM) 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, DFEM achieves a 14.75% return, which is significantly lower than DEM's 17.08% return.

DFEM

• 1D: 0.43%
• 1M: -4.27%
• 6M: 6.72%
• YTD: 14.75%
• 1Y: 29.34%
• 3Y*: 17.44%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 12.40%

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
DFEM Dimensional Emerging Markets Core Equity 2 ETF	$43.02M	$39.58M	$39.86M

DFEM vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	14.75%	29.51%	7.53%	13.91%	-9.60%
DEM WisdomTree Emerging Markets Equity Income Fund	17.08%	21.29%	4.46%	20.93%	-4.18%

Correlation

The correlation between DFEM and DEM is 0.86, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.86
Correlation (3Y) Balances recent behavior with more history.	0.89
Correlation (All Time) Calculated using the full available price history since Apr 27, 2022	0.89

The correlation between DFEM and DEM has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.

DFEM vs. DEM - Sectors Allocation Comparison

Sectors	DFEM	DEM
Technology	40.4%	17.5%
Financial Services	14.8%	21.9%
Industrials	10.6%	8.9%
Consumer Cyclical	7.9%	5.4%
Basic Materials	7.3%	3.7%
Communication Services	5.0%	3.0%
Healthcare	3.6%	0.6%
Energy	3.4%	6.2%
Consumer Defensive	3.3%	5.8%
Utilities	1.9%	3.0%
Real Estate	1.7%	2.9%

Return for Risk

DFEM vs. DEM — Risk / Return Rank

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

DFEM

DFEM Risk / Return Rank: 55
DFEM Sharpe Ratio Rank: 53
DFEM Sortino Ratio Rank: 50
DFEM Omega Ratio Rank: 57
DFEM Calmar Ratio Rank: 59
DFEM Martin Ratio Rank: 58

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.

DFEM vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) 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.

	DFEM	DEM	Difference
Sharpe ratio: Return per unit of total volatility	1.28	1.66	-0.38
Sortino ratio: Return per unit of downside risk	1.76	2.31	-0.55
Omega ratio: Gain probability vs. loss probability	1.25	1.30	-0.05
Calmar ratio: Return relative to maximum drawdown	2.08	3.15	-1.07
Martin ratio: Return relative to average drawdown	6.85	9.50	-2.65

DFEM vs. DEM - Sharpe Ratio Comparison

The current DFEM Sharpe Ratio is 1.28, which is comparable to the DEM Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of DFEM 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

DFEM vs. DEM - Drawdown Comparison

The maximum DFEM drawdown since its inception was -20.82%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for DFEM and DEM.

Drawdown Indicators

	DFEM	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-20.82%	-51.85%	+31.03%
Max Drawdown (1Y) Largest decline over 1 year	-13.84%	-7.89%	-5.95%
Max Drawdown (3Y) Largest decline over 3 years	-18.09%	-15.64%	-2.45%
Max Drawdown (5Y) Largest decline over 5 years	—	-27.18%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-10.46%	-3.57%	-6.89%
Average Drawdown Average peak-to-trough decline	-5.08%	-12.82%	+7.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.19%	2.61%	+1.58%

Volatility

DFEM vs. DEM - Volatility Comparison

Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a higher volatility of 8.15% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.12%. This indicates that DFEM's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEM	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.15%	5.12%	+3.03%
Volatility (6M) Calculated over the trailing 6-month period	20.62%	13.28%	+7.34%
Volatility (1Y) Calculated over the trailing 1-year period	22.46%	15.02%	+7.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.17%	15.60%	+2.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.17%	17.85%	+0.32%

DFEM vs. DEM - Expense Ratio Comparison

DFEM has a 0.39% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

DFEM vs. DEM - Dividend Comparison

DFEM's dividend yield for the trailing twelve months is around 1.97%, 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%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.97%	2.32%	2.50%	2.38%	1.99%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFEM and DEM in my portfolio?

DFEM and DEM have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFEM or DEM?

DFEM has higher volatility (8.15%) compared to DEM (5.12%). In terms of maximum drawdown, DFEM dropped -20.82% vs DEM's -51.85%.

Which ETF is better, DFEM or DEM?

On 3-year performance, DFEM leads with 17.44% vs 15.88% for DEM. On fees, DFEM is cheaper at 0.39% per year. On volatility, DEM has been the lower-risk option at 5.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEM or DEM?

Over the 3-year period, DFEM has performed better with a 17.44% return vs 15.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEM or DEM?

DFEM is cheaper with a 0.39% expense ratio, compared with 0.63% for DEM.

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

DEM has the higher dividend yield at 4.18%, compared with 1.97% for DFEM.

What is the main difference between DFEM and DEM?

DFEM is categorized as Emerging Markets Equities, while DEM is Dividend. They also come from different issuers: Dimensional and WisdomTree. Their fees differ too: 0.39% for DFEM and 0.63% for DEM.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (1.66 vs 1.28), 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.