DFEM vs. VWIUX

Last updated Jun 14, 2026

DFEM (Dimensional Emerging Markets Core Equity 2 ETF) and VWIUX (Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares) are both funds - DFEM is a Emerging Markets Diversified fund actively managed by Dimensional, while VWIUX is a Municipal Bonds fund managed by Vanguard. Over the past 3 years, DFEM returned 21.31%/yr vs 4.48%/yr for VWIUX. At a 0.12 correlation, their price movements are largely independent. DFEM charges 0.39%/yr vs 0.09%/yr for VWIUX.

Performance

DFEM vs. VWIUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Core Equity 2 ETF (DFEM) and Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFEM achieves a 22.86% return, which is significantly higher than VWIUX's 1.11% return.

DFEM

• 1D: 0.37%
• 1M: 0.25%
• YTD: 22.86%
• 6M: 25.68%
• 1Y: 43.48%
• 3Y*: 21.31%
• 5Y*: —
• 10Y*: —

VWIUX

• 1D: -0.07%
• 1M: 0.57%
• YTD: 1.11%
• 6M: 1.69%
• 1Y: 6.43%
• 3Y*: 4.48%
• 5Y*: 1.61%
• 10Y*: 2.41%

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

DFEM vs. VWIUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	22.86%	29.51%	7.53%	13.91%	-9.60%
VWIUX Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares	1.11%	5.99%	2.34%	5.90%	0.97%

Correlation

The correlation between DFEM and VWIUX is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (All Time) Calculated using the full available price history since Apr 27, 2022	0.12

The correlation between DFEM and VWIUX shifts across timeframes, from 0.11 (3 years) to 0.21 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

DFEM vs. VWIUX — Risk / Return Rank

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

DFEM

DFEM Risk / Return Rank: 75
DFEM Sharpe Ratio Rank: 74
DFEM Sortino Ratio Rank: 69
DFEM Omega Ratio Rank: 77
DFEM Calmar Ratio Rank: 76
DFEM Martin Ratio Rank: 77

VWIUX

VWIUX Risk / Return Rank: 74
VWIUX Sharpe Ratio Rank: 94
VWIUX Sortino Ratio Rank: 94
VWIUX Omega Ratio Rank: 95
VWIUX Calmar Ratio Rank: 49
VWIUX Martin Ratio Rank: 40

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.

DFEM vs. VWIUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) and Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX). 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	VWIUX	Difference
Sharpe ratio: Return per unit of total volatility	2.07	2.79	-0.72
Sortino ratio: Return per unit of downside risk	2.69	4.48	-1.79
Omega ratio: Gain probability vs. loss probability	1.39	1.74	-0.35
Calmar ratio: Return relative to maximum drawdown	3.42	2.18	+1.23
Martin ratio: Return relative to average drawdown	12.78	7.17	+5.61

DFEM vs. VWIUX - Sharpe Ratio Comparison

The current DFEM Sharpe Ratio is 2.07, which is comparable to the VWIUX Sharpe Ratio of 2.79. The chart below compares the historical Sharpe Ratios of DFEM and VWIUX, 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. VWIUX - Drawdown Comparison

The maximum DFEM drawdown since its inception was -20.82%, which is greater than VWIUX's maximum drawdown of -11.38%. Use the drawdown chart below to compare losses from any high point for DFEM and VWIUX.

Drawdown Indicators

	DFEM	VWIUX	Difference
Max Drawdown Largest peak-to-trough decline	-20.82%	-11.38%	-9.44%
Max Drawdown (1Y) Largest decline over 1 year	-12.12%	-2.99%	-9.13%
Max Drawdown (3Y) Largest decline over 3 years	-18.09%	-4.40%	-13.69%
Max Drawdown (5Y) Largest decline over 5 years	—	-11.38%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-11.38%	—
Current Drawdown Current decline from peak	-3.43%	-1.09%	-2.34%
Average Drawdown Average peak-to-trough decline	-5.03%	-1.44%	-3.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.24%	0.91%	+2.33%

Volatility

DFEM vs. VWIUX - Volatility Comparison

Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a higher volatility of 10.14% compared to Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) at 0.85%. This indicates that DFEM's price experiences larger fluctuations and is considered to be riskier than VWIUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEM	VWIUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.14%	0.85%	+9.29%
Volatility (6M) Calculated over the trailing 6-month period	17.91%	1.86%	+16.05%
Volatility (1Y) Calculated over the trailing 1-year period	20.02%	2.34%	+17.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.63%	3.27%	+14.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.63%	3.43%	+14.20%

DFEM vs. VWIUX - Expense Ratio Comparison

DFEM has a 0.39% expense ratio, which is higher than VWIUX's 0.09% expense ratio.

Dividends

DFEM vs. VWIUX - Dividend Comparison

DFEM's dividend yield for the trailing twelve months is around 1.86%, less than VWIUX's 3.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.86%	2.32%	2.50%	2.38%	1.99%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWIUX Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares	3.34%	4.06%	3.63%	2.78%	2.51%	1.89%	2.40%	2.88%	2.89%	2.82%	2.91%	2.96%

Frequently Asked Questions

Can I hold both DFEM and VWIUX in my portfolio?

DFEM and VWIUX have a correlation of 0.21, 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 VWIUX?

DFEM has higher volatility (10.14%) compared to VWIUX (0.85%). In terms of maximum drawdown, DFEM dropped -20.82% vs VWIUX's -11.38%.

Which has better risk-adjusted returns?

VWIUX currently has the higher Sharpe Ratio (2.79 vs 2.07), 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.