DFIS vs. VSS

Last updated Jun 23, 2026

DFIS (Dimensional International Small Cap ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both Foreign Small & Mid Cap Equities funds. DFIS is actively managed, while VSS is passively managed. Over the past 3 years, DFIS returned 19.75%/yr vs 17.08%/yr for VSS. With a 0.95 correlation, they move nearly in lockstep. DFIS charges 0.39%/yr vs 0.07%/yr for VSS.

Performance

DFIS vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional International Small Cap ETF (DFIS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFIS achieves a 9.85% return, which is significantly lower than VSS's 10.76% return.

DFIS

• 1D: 0.22%
• 1M: -0.39%
• YTD: 9.85%
• 6M: 10.18%
• 1Y: 27.72%
• 3Y*: 19.75%
• 5Y*: —
• 10Y*: —

VSS

• 1D: 0.22%
• 1M: -0.37%
• YTD: 10.76%
• 6M: 11.06%
• 1Y: 26.93%
• 3Y*: 17.08%
• 5Y*: 6.23%
• 10Y*: 8.76%

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

DFIS vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFIS Dimensional International Small Cap ETF	9.85%	37.49%	3.80%	15.19%	-12.50%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.76%	29.61%	2.94%	15.52%	-15.09%

Correlation

The correlation between DFIS and VSS is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (All Time) Calculated using the full available price history since Mar 24, 2022	0.95

The correlation between DFIS and VSS has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

DFIS vs. VSS - Sectors Allocation Comparison

Sectors	DFIS	VSS
Industrials	24.1%	18.7%
Basic Materials	14.6%	12.2%
Consumer Cyclical	13.5%	9.1%
Financial Services	11.7%	10.1%
Technology	9.8%	14.5%
Energy	5.6%	4.4%
Healthcare	5.3%	6.0%
Consumer Defensive	5.0%	3.5%
Communication Services	3.7%	2.3%
Real Estate	3.5%	7.1%
Utilities	3.2%	2.5%

Return for Risk

DFIS vs. VSS — Risk / Return Rank

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

DFIS

DFIS Risk / Return Rank: 53
DFIS Sharpe Ratio Rank: 57
DFIS Sortino Ratio Rank: 56
DFIS Omega Ratio Rank: 55
DFIS Calmar Ratio Rank: 47
DFIS Martin Ratio Rank: 51

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 50
VSS Omega Ratio Rank: 53
VSS Calmar Ratio Rank: 48
VSS Martin Ratio Rank: 52

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. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional International Small Cap ETF (DFIS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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	VSS	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.74	+0.12
Sortino ratio: Return per unit of downside risk	2.59	2.38	+0.21
Omega ratio: Gain probability vs. loss probability	1.33	1.32	+0.01
Calmar ratio: Return relative to maximum drawdown	2.24	2.33	-0.09
Martin ratio: Return relative to average drawdown	8.51	8.70	-0.19

DFIS vs. VSS - Sharpe Ratio Comparison

The current DFIS Sharpe Ratio is 1.86, which is comparable to the VSS Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of DFIS and VSS, 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. VSS - Drawdown Comparison

The maximum DFIS drawdown since its inception was -27.23%, smaller than the maximum VSS drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for DFIS and VSS.

Drawdown Indicators

	DFIS	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-27.23%	-43.51%	+16.28%
Max Drawdown (1Y) Largest decline over 1 year	-12.44%	-11.62%	-0.82%
Max Drawdown (3Y) Largest decline over 3 years	-13.55%	-15.73%	+2.18%
Max Drawdown (5Y) Largest decline over 5 years	—	-33.93%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-43.51%	—
Current Drawdown Current decline from peak	-2.28%	-2.41%	+0.13%
Average Drawdown Average peak-to-trough decline	-6.13%	-9.62%	+3.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	3.10%	+0.17%

Volatility

DFIS vs. VSS - Volatility Comparison

The current volatility for Dimensional International Small Cap ETF (DFIS) is 4.86%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 5.97%. This indicates that DFIS experiences smaller price fluctuations and is considered to be less risky than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFIS	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	5.97%	-1.11%
Volatility (6M) Calculated over the trailing 6-month period	12.68%	13.61%	-0.93%
Volatility (1Y) Calculated over the trailing 1-year period	15.00%	15.59%	-0.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	16.59%	+0.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.34%	17.28%	+0.06%

DFIS vs. VSS - Expense Ratio Comparison

DFIS has a 0.39% expense ratio, which is higher than VSS's 0.07% expense ratio.

Dividends

DFIS vs. VSS - Dividend Comparison

DFIS's dividend yield for the trailing twelve months is around 2.03%, less than VSS's 3.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFIS Dimensional International Small Cap ETF	2.03%	2.23%	2.19%	2.36%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.15%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both DFIS and VSS in my portfolio?

With a correlation of 0.94, DFIS and VSS 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.

Which is riskier, DFIS or VSS?

VSS has higher volatility (5.97%) compared to DFIS (4.86%). In terms of maximum drawdown, DFIS dropped -27.23% vs VSS's -43.51%.

Which ETF is better, DFIS or VSS?

On 3-year performance, DFIS leads with 19.75% vs 17.08% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, DFIS has been the lower-risk option at 4.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFIS or VSS?

Over the 3-year period, DFIS has performed better with a 19.75% return vs 17.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFIS or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.39% for DFIS.

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

VSS has the higher dividend yield at 3.15%, compared with 2.03% for DFIS.

What is the main difference between DFIS and VSS?

They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.39% for DFIS and 0.07% for VSS.

Which has better risk-adjusted returns?

DFIS currently has the higher Sharpe Ratio (1.86 vs 1.74), 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.