DFIP vs. DFNM

Last updated Jun 23, 2026

DFIP (Dimensional Inflation-Protected Securities ETF) and DFNM (Dimensional National Municipal Bond ETF) are both exchange-traded funds - DFIP is a Inflation-Protected Bonds fund actively managed by Dimensional, while DFNM is a Municipal Bonds fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFIP returned 3.87%/yr vs 3.20%/yr for DFNM. A 0.54 correlation means they provide meaningful diversification when combined. DFIP charges 0.11%/yr vs 0.17%/yr for DFNM.

Performance

DFIP vs. DFNM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Inflation-Protected Securities ETF (DFIP) and Dimensional National Municipal Bond ETF (DFNM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFIP achieves a 0.72% return, which is significantly lower than DFNM's 1.44% return.

DFIP

• 1D: -0.44%
• 1M: -0.20%
• YTD: 0.72%
• 6M: 0.83%
• 1Y: 3.57%
• 3Y*: 3.87%
• 5Y*: —
• 10Y*: —

DFNM

• 1D: -0.01%
• 1M: 0.92%
• YTD: 1.44%
• 6M: 1.52%
• 1Y: 5.19%
• 3Y*: 3.20%
• 5Y*: —
• 10Y*: —

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

DFIP vs. DFNM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFIP Dimensional Inflation-Protected Securities ETF	0.72%	7.54%	1.72%	4.07%	-12.39%	-0.37%
DFNM Dimensional National Municipal Bond ETF	1.44%	3.87%	1.19%	3.97%	-4.02%	0.40%

Correlation

The correlation between DFIP and DFNM is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021	0.54

The correlation between DFIP and DFNM shifts across timeframes, from 0.46 (1 year) to 0.59 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

DFIP vs. DFNM — Risk / Return Rank

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

DFIP

DFIP Risk / Return Rank: 31
DFIP Sharpe Ratio Rank: 29
DFIP Sortino Ratio Rank: 29
DFIP Omega Ratio Rank: 27
DFIP Calmar Ratio Rank: 36
DFIP Martin Ratio Rank: 35

DFNM

DFNM Risk / Return Rank: 80
DFNM Sharpe Ratio Rank: 91
DFNM Sortino Ratio Rank: 93
DFNM Omega Ratio Rank: 95
DFNM Calmar Ratio Rank: 59
DFNM Martin Ratio Rank: 59

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.

DFIP vs. DFNM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Inflation-Protected Securities ETF (DFIP) and Dimensional National Municipal Bond ETF (DFNM). 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.

	DFIP	DFNM	Difference
Sharpe ratio: Return per unit of total volatility	1.03	3.04	-2.01
Sortino ratio: Return per unit of downside risk	1.54	4.39	-2.85
Omega ratio: Gain probability vs. loss probability	1.18	1.70	-0.52
Calmar ratio: Return relative to maximum drawdown	1.74	2.84	-1.09
Martin ratio: Return relative to average drawdown	5.15	10.19	-5.04

DFIP vs. DFNM - Sharpe Ratio Comparison

The current DFIP Sharpe Ratio is 1.03, which is lower than the DFNM Sharpe Ratio of 3.04. The chart below compares the historical Sharpe Ratios of DFIP and DFNM, 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

DFIP vs. DFNM - Drawdown Comparison

The maximum DFIP drawdown since its inception was -14.96%, which is greater than DFNM's maximum drawdown of -6.99%. Use the drawdown chart below to compare losses from any high point for DFIP and DFNM.

Drawdown Indicators

	DFIP	DFNM	Difference
Max Drawdown Largest peak-to-trough decline	-14.96%	-6.99%	-7.97%
Max Drawdown (1Y) Largest decline over 1 year	-2.06%	-1.84%	-0.22%
Max Drawdown (3Y) Largest decline over 3 years	-4.82%	-2.82%	-2.00%
Current Drawdown Current decline from peak	-1.22%	-0.22%	-1.00%
Average Drawdown Average peak-to-trough decline	-6.88%	-1.94%	-4.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.69%	0.51%	+0.18%

Volatility

DFIP vs. DFNM - Volatility Comparison

Dimensional Inflation-Protected Securities ETF (DFIP) has a higher volatility of 1.31% compared to Dimensional National Municipal Bond ETF (DFNM) at 0.38%. This indicates that DFIP's price experiences larger fluctuations and is considered to be riskier than DFNM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFIP	DFNM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.31%	0.38%	+0.93%
Volatility (6M) Calculated over the trailing 6-month period	2.52%	1.29%	+1.23%
Volatility (1Y) Calculated over the trailing 1-year period	3.50%	1.72%	+1.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.79%	2.53%	+4.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.79%	2.53%	+4.26%

DFIP vs. DFNM - Expense Ratio Comparison

DFIP has a 0.11% expense ratio, which is lower than DFNM's 0.17% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DFIP vs. DFNM - Dividend Comparison

DFIP's dividend yield for the trailing twelve months is around 3.91%, more than DFNM's 2.89% yield.

Position	TTM	2025	2024	2023	2022	2021
DFIP Dimensional Inflation-Protected Securities ETF	3.91%	4.70%	3.69%	3.68%	5.97%	0.56%
DFNM Dimensional National Municipal Bond ETF	2.89%	2.94%	2.74%	2.39%	1.16%	0.05%

Frequently Asked Questions

Can I hold both DFIP and DFNM in my portfolio?

DFIP and DFNM have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFIP or DFNM?

DFIP has higher volatility (1.31%) compared to DFNM (0.38%). In terms of maximum drawdown, DFIP dropped -14.96% vs DFNM's -6.99%.

Which ETF is better, DFIP or DFNM?

On 3-year performance, DFIP leads with 3.87% vs 3.20% for DFNM. On fees, DFIP is cheaper at 0.11% per year. On volatility, DFNM has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFIP or DFNM?

Over the 3-year period, DFIP has performed better with a 3.87% return vs 3.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFIP or DFNM?

DFIP is cheaper with a 0.11% expense ratio, compared with 0.17% for DFNM.

Which ETF pays a higher dividend yield, DFIP or DFNM?

DFIP has the higher dividend yield at 3.91%, compared with 2.89% for DFNM.

What is the main difference between DFIP and DFNM?

DFIP is categorized as Inflation-Protected Bonds, while DFNM is Municipal Bonds. Their fees differ too: 0.11% for DFIP and 0.17% for DFNM.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (3.04 vs 1.03), 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.