DFEM vs. VWO
DFEM (Dimensional Emerging Markets Core Equity 2 ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - DFEM is a Emerging Markets Diversified fund actively managed by Dimensional, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. DFEM is actively managed, while VWO is passively managed. Over the past 3 years, DFEM returned 24.10%/yr vs 18.64%/yr for VWO. With a 0.97 correlation, they move nearly in lockstep. DFEM charges 0.39%/yr vs 0.08%/yr for VWO.
Performance
DFEM vs. VWO - Performance Comparison
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Returns By Period
In the year-to-date period, DFEM achieves a 28.16% return, which is significantly higher than VWO's 14.05% return.
DFEM
- 1D
- 0.55%
- 1M
- 6.54%
- YTD
- 28.16%
- 6M
- 29.41%
- 1Y
- 51.34%
- 3Y*
- 24.10%
- 5Y*
- —
- 10Y*
- —
VWO
- 1D
- 0.77%
- 1M
- 3.96%
- YTD
- 14.05%
- 6M
- 14.71%
- 1Y
- 32.13%
- 3Y*
- 18.64%
- 5Y*
- 5.90%
- 10Y*
- 9.31%
DFEM vs. VWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 28.16% | 29.51% | 7.53% | 13.91% | -9.60% |
VWO Vanguard FTSE Emerging Markets ETF | 14.05% | 25.60% | 10.59% | 9.25% | -4.28% |
Correlation
The correlation between DFEM and VWO is 0.95, 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Apr 27, 2022 | 0.97 |
The correlation between DFEM and VWO has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.
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Return for Risk
DFEM vs. VWO — Risk / Return Rank
DFEM
VWO
DFEM vs. VWO - 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 FTSE Emerging Markets ETF (VWO). 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 | VWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.60 | ||
| Sortino ratioReturn per unit of downside risk | +0.57 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.36 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 4.26 | 2.89 | +1.37 |
| Martin ratioReturn relative to average drawdown | 15.91 | 10.19 | +5.72 |
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Drawdowns
DFEM vs. VWO - Drawdown Comparison
The maximum DFEM drawdown since its inception was -20.82%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for DFEM and VWO.
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Drawdown Indicators
| DFEM | VWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.82% | -67.68% | +46.86% |
Max Drawdown (1Y)Largest decline over 1 year | -12.12% | -11.17% | -0.95% |
Max Drawdown (3Y)Largest decline over 3 years | -18.09% | -17.37% | -0.72% |
Max Drawdown (5Y)Largest decline over 5 years | — | -32.60% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -36.39% | — |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -5.01% | -15.79% | +10.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.24% | 3.16% | +0.08% |
Volatility
DFEM vs. VWO - Volatility Comparison
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a higher volatility of 10.26% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 6.57%. This indicates that DFEM's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DFEM | VWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.26% | 6.57% | +3.69% |
Volatility (6M)Calculated over the trailing 6-month period | 18.33% | 14.28% | +4.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.35% | 16.67% | +3.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.72% | 17.53% | +0.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.72% | 19.24% | -1.52% |
DFEM vs. VWO - Expense Ratio Comparison
DFEM has a 0.39% expense ratio, which is higher than VWO's 0.08% expense ratio.
Dividends
DFEM vs. VWO - Dividend Comparison
DFEM's dividend yield for the trailing twelve months is around 1.78%, less than VWO's 2.26% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 1.78% | 2.32% | 2.50% | 2.38% | 1.99% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VWO Vanguard FTSE Emerging Markets ETF | 2.26% | 2.79% | 3.20% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% |
Frequently Asked Questions
With a correlation of 0.95, DFEM and VWO 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 (10.26%) compared to VWO (6.57%). In terms of maximum drawdown, DFEM dropped -20.82% vs VWO's -67.68%.
On 3-year performance, DFEM leads with 24.10% vs 18.64% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 6.57%. 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 24.10% return vs 18.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.39% for DFEM.
VWO has the higher dividend yield at 2.26%, compared with 1.78% for DFEM.
DFEM is categorized as Emerging Markets Diversified, while VWO is Emerging Markets Equities. They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.39% for DFEM and 0.08% for VWO.
DFEM currently has the higher Sharpe Ratio (2.54 vs 1.94), 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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