DFGX vs. DFEM

Last updated Jun 24, 2026

DFGX (Dimensional Global Ex US Core Fixed Income ETF) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both exchange-traded funds - DFGX is a Global Bonds fund actively managed by Dimensional, while DFEM is a Emerging Markets Diversified fund actively managed by Dimensional. Both are actively managed. Over the past year, DFGX returned 3.25% vs 41.37% for DFEM. At a 0.22 correlation, their price movements are largely independent. DFGX charges 0.20%/yr vs 0.39%/yr for DFEM.

Performance

DFGX vs. DFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Global Ex US Core Fixed Income ETF (DFGX) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFGX achieves a 1.67% return, which is significantly lower than DFEM's 20.81% return.

DFGX

• 1D: 0.19%
• 1M: 1.25%
• YTD: 1.67%
• 6M: 1.69%
• 1Y: 3.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFEM

• 1D: -5.74%
• 1M: 0.43%
• YTD: 20.81%
• 6M: 21.36%
• 1Y: 41.37%
• 3Y*: 21.68%
• 5Y*: —
• 10Y*: —

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

DFGX vs. DFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFGX Dimensional Global Ex US Core Fixed Income ETF	1.67%	3.46%	3.75%	4.95%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	20.81%	29.51%	7.53%	6.57%

Correlation

The correlation between DFGX and DFEM is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (All Time) Calculated using the full available price history since Nov 8, 2023	0.22

The correlation between DFGX and DFEM shifts across timeframes, from 0.22 (all time) to 0.36 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

DFGX vs. DFEM — Risk / Return Rank

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

DFGX

DFGX Risk / Return Rank: 22
DFGX Sharpe Ratio Rank: 24
DFGX Sortino Ratio Rank: 22
DFGX Omega Ratio Rank: 22
DFGX Calmar Ratio Rank: 22
DFGX Martin Ratio Rank: 23

DFEM

DFEM Risk / Return Rank: 66
DFEM Sharpe Ratio Rank: 63
DFEM Sortino Ratio Rank: 55
DFEM Omega Ratio Rank: 67
DFEM Calmar Ratio Rank: 72
DFEM Martin Ratio Rank: 72

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.

DFGX vs. DFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Global Ex US Core Fixed Income ETF (DFGX) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). 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.

	DFGX	DFEM	Difference
Sharpe ratio: Return per unit of total volatility	0.79	1.97	-1.17
Sortino ratio: Return per unit of downside risk	1.17	2.52	-1.35
Omega ratio: Gain probability vs. loss probability	1.14	1.38	-0.24
Calmar ratio: Return relative to maximum drawdown	0.98	3.43	-2.45
Martin ratio: Return relative to average drawdown	2.80	12.74	-9.94

DFGX vs. DFEM - Sharpe Ratio Comparison

The current DFGX Sharpe Ratio is 0.79, which is lower than the DFEM Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of DFGX and DFEM, 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

DFGX vs. DFEM - Drawdown Comparison

The maximum DFGX drawdown since its inception was -3.32%, smaller than the maximum DFEM drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for DFGX and DFEM.

Drawdown Indicators

	DFGX	DFEM	Difference
Max Drawdown Largest peak-to-trough decline	-3.32%	-20.82%	+17.50%
Max Drawdown (1Y) Largest decline over 1 year	-3.32%	-12.12%	+8.80%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.09%	—
Current Drawdown Current decline from peak	-0.49%	-5.74%	+5.25%
Average Drawdown Average peak-to-trough decline	-0.78%	-5.01%	+4.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.16%	3.26%	-2.10%

Volatility

DFGX vs. DFEM - Volatility Comparison

The current volatility for Dimensional Global Ex US Core Fixed Income ETF (DFGX) is 1.12%, while Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a volatility of 12.01%. This indicates that DFGX experiences smaller price fluctuations and is considered to be less risky than DFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFGX	DFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.12%	12.01%	-10.89%
Volatility (6M) Calculated over the trailing 6-month period	3.46%	19.31%	-15.85%
Volatility (1Y) Calculated over the trailing 1-year period	4.11%	21.16%	-17.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.65%	17.94%	-13.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.65%	17.94%	-13.29%

DFGX vs. DFEM - Expense Ratio Comparison

DFGX has a 0.20% expense ratio, which is lower than DFEM's 0.39% expense ratio.

Dividends

DFGX vs. DFEM - Dividend Comparison

DFGX's dividend yield for the trailing twelve months is around 2.73%, more than DFEM's 1.89% yield.

Position	TTM	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.89%	2.32%	2.50%	2.38%	1.99%
DFGX Dimensional Global Ex US Core Fixed Income ETF	2.73%	2.84%	4.61%	0.49%	0.00%

Frequently Asked Questions

Can I hold both DFGX and DFEM in my portfolio?

DFGX and DFEM have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFGX or DFEM?

DFEM has higher volatility (12.01%) compared to DFGX (1.12%). In terms of maximum drawdown, DFGX dropped -3.32% vs DFEM's -20.82%.

Which ETF is better, DFGX or DFEM?

On 1-year performance, DFEM leads with 41.37% vs 3.25% for DFGX. On fees, DFGX is cheaper at 0.20% per year. On volatility, DFGX has been the lower-risk option at 1.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFGX or DFEM?

Over the 1-year period, DFEM has performed better with a 41.37% return vs 3.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFGX or DFEM?

DFGX is cheaper with a 0.20% expense ratio, compared with 0.39% for DFEM.

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

DFGX has the higher dividend yield at 2.73%, compared with 1.89% for DFEM.

What is the main difference between DFGX and DFEM?

DFGX is categorized as Global Bonds, while DFEM is Emerging Markets Diversified. Their fees differ too: 0.20% for DFGX and 0.39% for DFEM.

Which has better risk-adjusted returns?

DFEM currently has the higher Sharpe Ratio (1.97 vs 0.79), 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.