DFEM vs. EEMS
DFEM (Dimensional Emerging Markets Core Equity 2 ETF) and EEMS (iShares MSCI Emerging Markets Small-Cap ETF) are both Emerging Markets Diversified funds. DFEM is actively managed, while EEMS is passively managed. Over the past 3 years, DFEM returned 21.68%/yr vs 15.45%/yr for EEMS. Their correlation of 0.91 suggests significant overlap in exposure. DFEM charges 0.39%/yr vs 0.73%/yr for EEMS.
Performance
DFEM vs. EEMS - Performance Comparison
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Returns By Period
In the year-to-date period, DFEM achieves a 20.81% return, which is significantly higher than EEMS's 11.49% return.
DFEM
- 1D
- -5.74%
- 1M
- 0.43%
- YTD
- 20.81%
- 6M
- 21.36%
- 1Y
- 41.37%
- 3Y*
- 21.68%
- 5Y*
- —
- 10Y*
- —
EEMS
- 1D
- -4.01%
- 1M
- -2.11%
- YTD
- 11.49%
- 6M
- 12.59%
- 1Y
- 23.79%
- 3Y*
- 15.45%
- 5Y*
- 6.33%
- 10Y*
- 9.32%
DFEM vs. EEMS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 20.81% | 29.51% | 7.53% | 13.91% | -9.60% |
EEMS iShares MSCI Emerging Markets Small-Cap ETF | 11.49% | 19.78% | 3.13% | 23.09% | -9.52% |
Correlation
The correlation between DFEM and EEMS is 0.92, 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 | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Apr 27, 2022 | 0.91 |
The correlation between DFEM and EEMS has been stable across timeframes, ranging from 0.91 to 0.92 - a consistent structural relationship.
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Return for Risk
DFEM vs. EEMS — Risk / Return Rank
DFEM
EEMS
DFEM vs. EEMS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) and iShares MSCI Emerging Markets Small-Cap ETF (EEMS). 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 | EEMS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.71 | ||
| Sortino ratioReturn per unit of downside risk | +0.79 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.24 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 3.43 | 2.20 | +1.23 |
| Martin ratioReturn relative to average drawdown | 12.74 | 7.37 | +5.37 |
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Drawdowns
DFEM vs. EEMS - Drawdown Comparison
The maximum DFEM drawdown since its inception was -20.82%, smaller than the maximum EEMS drawdown of -48.89%. Use the drawdown chart below to compare losses from any high point for DFEM and EEMS.
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Drawdown Indicators
| DFEM | EEMS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.82% | -48.89% | +28.07% |
Max Drawdown (1Y)Largest decline over 1 year | -12.12% | -10.87% | -1.25% |
Max Drawdown (3Y)Largest decline over 3 years | -18.09% | -19.71% | +1.62% |
Max Drawdown (5Y)Largest decline over 5 years | — | -27.07% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -48.89% | — |
Current DrawdownCurrent decline from peak | -5.74% | -5.08% | -0.66% |
Average DrawdownAverage peak-to-trough decline | -5.01% | -10.48% | +5.47% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.26% | 3.24% | +0.02% |
Volatility
DFEM vs. EEMS - Volatility Comparison
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a higher volatility of 12.01% compared to iShares MSCI Emerging Markets Small-Cap ETF (EEMS) at 9.86%. This indicates that DFEM's price experiences larger fluctuations and is considered to be riskier than EEMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DFEM | EEMS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.01% | 9.86% | +2.15% |
Volatility (6M)Calculated over the trailing 6-month period | 19.31% | 17.19% | +2.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.16% | 19.11% | +2.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.94% | 16.50% | +1.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.94% | 18.12% | -0.18% |
DFEM vs. EEMS - Expense Ratio Comparison
DFEM has a 0.39% expense ratio, which is lower than EEMS's 0.73% expense ratio.
Dividends
DFEM vs. EEMS - Dividend Comparison
DFEM's dividend yield for the trailing twelve months is around 1.89%, less than EEMS's 2.86% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 1.89% | 2.32% | 2.50% | 2.38% | 1.99% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
EEMS iShares MSCI Emerging Markets Small-Cap ETF | 2.86% | 3.09% | 2.60% | 2.69% | 0.89% | 3.56% | 2.14% | 2.64% | 3.06% | 2.47% | 2.51% | 2.33% |
Frequently Asked Questions
With a correlation of 0.92, DFEM and EEMS 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.
DFEM has higher volatility (12.01%) compared to EEMS (9.86%). In terms of maximum drawdown, DFEM dropped -20.82% vs EEMS's -48.89%.
On 3-year performance, DFEM leads with 21.68% vs 15.45% for EEMS. On fees, DFEM is cheaper at 0.39% per year. On volatility, EEMS has been the lower-risk option at 9.86%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, DFEM has performed better with a 21.68% return vs 15.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DFEM is cheaper with a 0.39% expense ratio, compared with 0.73% for EEMS.
EEMS has the higher dividend yield at 2.86%, compared with 1.89% for DFEM.
They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.39% for DFEM and 0.73% for EEMS.
DFEM currently has the higher Sharpe Ratio (1.97 vs 1.25), 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.
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