DFIS vs. EEM

Last updated Jun 16, 2026

DFIS (Dimensional International Small Cap ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - DFIS is a Foreign Small & Mid Cap Equities fund actively managed by Dimensional, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). DFIS is actively managed, while EEM is passively managed. Over the past 3 years, DFIS returned 18.63%/yr vs 22.37%/yr for EEM. A 0.75 correlation means they provide meaningful diversification when combined. DFIS charges 0.39%/yr vs 0.72%/yr for EEM.

Performance

DFIS vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional International Small Cap ETF (DFIS) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFIS achieves a 10.76% return, which is significantly lower than EEM's 28.15% return.

DFIS

• 1D: 0.64%
• 1M: 1.59%
• YTD: 10.76%
• 6M: 12.40%
• 1Y: 27.37%
• 3Y*: 18.63%
• 5Y*: —
• 10Y*: —

EEM

• 1D: 3.29%
• 1M: 7.75%
• YTD: 28.15%
• 6M: 31.50%
• 1Y: 52.42%
• 3Y*: 22.37%
• 5Y*: 7.63%
• 10Y*: 10.16%

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

DFIS vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFIS Dimensional International Small Cap ETF	10.76%	37.49%	3.80%	15.19%	-12.50%
EEM iShares MSCI Emerging Markets ETF	28.15%	33.98%	6.49%	8.95%	-14.09%

Correlation

The correlation between DFIS and EEM is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (All Time) Calculated using the full available price history since Mar 24, 2022	0.75

The correlation between DFIS and EEM has been stable across timeframes, ranging from 0.73 to 0.75 - a consistent structural relationship.

DFIS vs. EEM - Sectors Allocation Comparison

Sectors	DFIS	EEM
Industrials	24.1%	6.6%
Basic Materials	14.6%	5.9%
Consumer Cyclical	13.5%	8.3%
Financial Services	11.7%	17.7%
Technology	9.8%	44.3%
Energy	5.6%	3.4%
Healthcare	5.3%	2.5%
Consumer Defensive	5.0%	2.5%
Communication Services	3.7%	6.0%
Real Estate	3.5%	1.0%
Utilities	3.2%	1.8%

Return for Risk

DFIS vs. EEM — Risk / Return Rank

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

DFIS

DFIS Risk / Return Rank: 56
DFIS Sharpe Ratio Rank: 60
DFIS Sortino Ratio Rank: 59
DFIS Omega Ratio Rank: 59
DFIS Calmar Ratio Rank: 48
DFIS Martin Ratio Rank: 53

EEM

EEM Risk / Return Rank: 82
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 78
EEM Omega Ratio Rank: 84
EEM Calmar Ratio Rank: 82
EEM Martin Ratio Rank: 81

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. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional International Small Cap ETF (DFIS) and iShares MSCI Emerging Markets ETF (EEM). 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.

	DFIS	EEM	Difference
Sharpe ratio: Return per unit of total volatility	1.84	2.42	-0.58
Sortino ratio: Return per unit of downside risk	2.56	3.09	-0.52
Omega ratio: Gain probability vs. loss probability	1.33	1.45	-0.12
Calmar ratio: Return relative to maximum drawdown	2.21	3.90	-1.69
Martin ratio: Return relative to average drawdown	8.42	14.36	-5.93

DFIS vs. EEM - Sharpe Ratio Comparison

The current DFIS Sharpe Ratio is 1.84, which is comparable to the EEM Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of DFIS and EEM, 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

DFIS vs. EEM - Drawdown Comparison

The maximum DFIS drawdown since its inception was -27.23%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for DFIS and EEM.

Drawdown Indicators

	DFIS	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-27.23%	-66.43%	+39.20%
Max Drawdown (1Y) Largest decline over 1 year	-12.44%	-13.52%	+1.08%
Max Drawdown (3Y) Largest decline over 3 years	-13.55%	-17.29%	+3.74%
Max Drawdown (5Y) Largest decline over 5 years	—	-37.49%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-39.82%	—
Current Drawdown Current decline from peak	-1.47%	-0.97%	-0.50%
Average Drawdown Average peak-to-trough decline	-6.14%	-16.00%	+9.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.26%	3.66%	-0.40%

Volatility

DFIS vs. EEM - Volatility Comparison

The current volatility for Dimensional International Small Cap ETF (DFIS) is 5.48%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 11.26%. This indicates that DFIS experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFIS	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.48%	11.26%	-5.78%
Volatility (6M) Calculated over the trailing 6-month period	12.67%	19.62%	-6.95%
Volatility (1Y) Calculated over the trailing 1-year period	15.01%	21.84%	-6.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.36%	19.32%	-1.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.36%	20.67%	-3.31%

DFIS vs. EEM - Expense Ratio Comparison

DFIS has a 0.39% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

DFIS vs. EEM - Dividend Comparison

DFIS's dividend yield for the trailing twelve months is around 2.01%, less than EEM's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFIS Dimensional International Small Cap ETF	2.01%	2.23%	2.19%	2.36%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
EEM iShares MSCI Emerging Markets ETF	2.24%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%

Frequently Asked Questions

Can I hold both DFIS and EEM in my portfolio?

DFIS and EEM have a correlation of 0.75, 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 EEM?

EEM has higher volatility (11.26%) compared to DFIS (5.48%). In terms of maximum drawdown, DFIS dropped -27.23% vs EEM's -66.43%.

Which ETF is better, DFIS or EEM?

On 3-year performance, EEM leads with 22.37% vs 18.63% for DFIS. On fees, DFIS is cheaper at 0.39% per year. On volatility, DFIS has been the lower-risk option at 5.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFIS or EEM?

Over the 3-year period, EEM has performed better with a 22.37% return vs 18.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFIS or EEM?

DFIS is cheaper with a 0.39% expense ratio, compared with 0.72% for EEM.

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

EEM has the higher dividend yield at 2.24%, compared with 2.01% for DFIS.

What is the main difference between DFIS and EEM?

DFIS is categorized as Foreign Small & Mid Cap Equities, while EEM is Emerging Markets Diversified. They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.39% for DFIS and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.42 vs 1.84), 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.