DFIS vs. DFEM

Last updated Jun 5, 2026

DFIS (Dimensional International Small Cap ETF) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both exchange-traded funds - DFIS is a Foreign Small & Mid Cap Equities fund actively managed by Dimensional, while DFEM is a Emerging Markets Diversified fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFIS returned 19.89%/yr vs 22.96%/yr for DFEM. A 0.76 correlation means they provide meaningful diversification when combined. Both charge a 0.39% expense ratio.

Performance

DFIS vs. DFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional International Small Cap ETF (DFIS) 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, DFIS achieves a 11.25% return, which is significantly lower than DFEM's 24.74% return.

DFIS

• 1D: 0.88%
• 1M: 2.95%
• YTD: 11.25%
• 6M: 14.62%
• 1Y: 28.32%
• 3Y*: 19.89%
• 5Y*: —
• 10Y*: —

DFEM

• 1D: -0.67%
• 1M: 3.96%
• YTD: 24.74%
• 6M: 27.17%
• 1Y: 47.56%
• 3Y*: 22.96%
• 5Y*: —
• 10Y*: —

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

DFIS vs. DFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFIS Dimensional International Small Cap ETF	11.25%	37.49%	3.80%	15.19%	-5.38%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	24.74%	29.51%	7.53%	13.91%	-8.69%

Correlation

The correlation between DFIS and DFEM is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (All Time) Calculated using the full available price history since Apr 28, 2022	0.76

The correlation between DFIS and DFEM has been stable across timeframes, ranging from 0.74 to 0.76 - a consistent structural relationship.

DFIS vs. DFEM - Sectors Allocation Comparison

Sectors	DFIS	DFEM
Industrials	23.9%	11.9%
Basic Materials	14.2%	8.4%
Consumer Cyclical	13.5%	9.8%
Financial Services	12.0%	15.4%
Technology	9.6%	32.9%
Energy	6.0%	4.4%
Healthcare	5.2%	3.8%
Consumer Defensive	5.0%	3.7%
Real Estate	3.7%	2.0%
Communication Services	3.6%	5.5%
Utilities	3.3%	2.2%

Return for Risk

DFIS vs. DFEM — Risk / Return Rank

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

DFIS

DFIS Risk / Return Rank: 55
DFIS Sharpe Ratio Rank: 58
DFIS Sortino Ratio Rank: 58
DFIS Omega Ratio Rank: 58
DFIS Calmar Ratio Rank: 47
DFIS Martin Ratio Rank: 53

DFEM

DFEM Risk / Return Rank: 79
DFEM Sharpe Ratio Rank: 81
DFEM Sortino Ratio Rank: 76
DFEM Omega Ratio Rank: 80
DFEM Calmar Ratio Rank: 78
DFEM Martin Ratio Rank: 80

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.

DFIS vs. DFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional International Small Cap ETF (DFIS) 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.

	DFIS	DFEM	Difference
Sharpe ratio: Return per unit of total volatility	1.96	2.59	-0.63
Sortino ratio: Return per unit of downside risk	2.73	3.38	-0.64
Omega ratio: Gain probability vs. loss probability	1.35	1.47	-0.13
Calmar ratio: Return relative to maximum drawdown	2.29	3.94	-1.65
Martin ratio: Return relative to average drawdown	8.82	15.40	-6.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFIS vs. DFEM - Sharpe Ratio Comparison

The current DFIS Sharpe Ratio is 1.96, which is comparable to the DFEM Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of DFIS 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.

Sharpe Ratios by Period

	DFIS	DFEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.96	2.59	-0.63
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.90	-0.22

Drawdowns

DFIS vs. DFEM - Drawdown Comparison

The maximum DFIS drawdown since its inception was -27.23%, which is greater than DFEM's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for DFIS and DFEM.

Drawdown Indicators

	DFIS	DFEM	Difference
Max Drawdown Largest peak-to-trough decline	-27.23%	-20.82%	-6.41%
Max Drawdown (1Y) Largest decline over 1 year	-12.44%	-12.12%	-0.32%
Max Drawdown (3Y) Largest decline over 3 years	-13.55%	-18.09%	+4.54%
Current Drawdown Current decline from peak	-1.04%	-1.95%	+0.91%
Average Drawdown Average peak-to-trough decline	-6.17%	-5.03%	-1.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.22%	3.10%	+0.12%

Volatility

DFIS vs. DFEM - Volatility Comparison

The current volatility for Dimensional International Small Cap ETF (DFIS) is 4.72%, while Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a volatility of 7.61%. This indicates that DFIS 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

	DFIS	DFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.72%	7.61%	-2.89%
Volatility (6M) Calculated over the trailing 6-month period	12.06%	16.04%	-3.98%
Volatility (1Y) Calculated over the trailing 1-year period	14.53%	18.47%	-3.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.32%	17.25%	+0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.32%	17.25%	+0.07%

DFIS vs. DFEM - Expense Ratio Comparison

Both DFIS and DFEM have an expense ratio of 0.39%.

Dividends

DFIS vs. DFEM - Dividend Comparison

DFIS's dividend yield for the trailing twelve months is around 2.00%, more than DFEM's 1.83% yield.

Position	TTM	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.83%	2.32%	2.50%	2.38%	1.99%
DFIS Dimensional International Small Cap ETF	2.00%	2.23%	2.19%	2.36%	1.13%

Frequently Asked Questions

Can I hold both DFIS and DFEM in my portfolio?

DFIS and DFEM have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFIS or DFEM?

DFEM has higher volatility (7.61%) compared to DFIS (4.72%). In terms of maximum drawdown, DFIS dropped -27.23% vs DFEM's -20.82%.

Which ETF is better, DFIS or DFEM?

On 3-year performance, DFEM leads with 22.96% vs 19.89% for DFIS. Both ETFs have the same 0.39% expense ratio. On volatility, DFIS has been the lower-risk option at 4.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFIS or DFEM?

Over the 3-year period, DFEM has performed better with a 22.96% return vs 19.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFIS or DFEM?

DFIS and DFEM have the same expense ratio: 0.39% per year.

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

DFIS has the higher dividend yield at 2.00%, compared with 1.83% for DFEM.

What is the main difference between DFIS and DFEM?

DFIS is categorized as Foreign Small & Mid Cap Equities, while DFEM is Emerging Markets Diversified.

Which has better risk-adjusted returns?

DFEM currently has the higher Sharpe Ratio (2.59 vs 1.96), 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.