DFIS vs. XAR

Last updated Jun 9, 2026

DFIS (Dimensional International Small Cap ETF) and XAR (SPDR S&P Aerospace & Defense ETF) are both exchange-traded funds - DFIS is a Foreign Small & Mid Cap Equities fund actively managed by Dimensional, while XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index. DFIS is actively managed, while XAR is passively managed. Over the past 3 years, DFIS returned 18.49%/yr vs 32.47%/yr for XAR. A 0.60 correlation means they provide meaningful diversification when combined. DFIS charges 0.39%/yr vs 0.35%/yr for XAR.

Performance

DFIS vs. XAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional International Small Cap ETF (DFIS) and SPDR S&P Aerospace & Defense ETF (XAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFIS achieves a 8.42% return, which is significantly lower than XAR's 12.43% return.

DFIS

• 1D: 0.08%
• 1M: -2.57%
• YTD: 8.42%
• 6M: 11.78%
• 1Y: 25.15%
• 3Y*: 18.49%
• 5Y*: —
• 10Y*: —

XAR

• 1D: -0.54%
• 1M: 2.15%
• YTD: 12.43%
• 6M: 16.39%
• 1Y: 37.23%
• 3Y*: 32.47%
• 5Y*: 15.97%
• 10Y*: 17.82%

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

DFIS vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFIS Dimensional International Small Cap ETF	8.42%	37.49%	3.80%	15.19%	-12.94%
XAR SPDR S&P Aerospace & Defense ETF	12.43%	46.15%	23.32%	23.79%	-12.95%

Correlation

The correlation between DFIS and XAR is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (All Time) Calculated using the full available price history since Mar 25, 2022	0.60

The correlation between DFIS and XAR has been stable across timeframes, ranging from 0.53 to 0.60 - a consistent structural relationship.

DFIS vs. XAR - Sectors Allocation Comparison

Sectors	DFIS	XAR
Industrials	23.9%	99.1%
Basic Materials	14.2%	-
Consumer Cyclical	13.5%	-
Financial Services	12.0%	-
Technology	9.6%	0.8%
Energy	6.0%	-
Healthcare	5.2%	-
Consumer Defensive	5.0%	-
Real Estate	3.7%	-
Communication Services	3.6%	-
Utilities	3.3%	-

Return for Risk

DFIS vs. XAR — Risk / Return Rank

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

DFIS

DFIS Risk / Return Rank: 52
DFIS Sharpe Ratio Rank: 56
DFIS Sortino Ratio Rank: 56
DFIS Omega Ratio Rank: 55
DFIS Calmar Ratio Rank: 45
DFIS Martin Ratio Rank: 50

XAR

XAR Risk / Return Rank: 43
XAR Sharpe Ratio Rank: 44
XAR Sortino Ratio Rank: 45
XAR Omega Ratio Rank: 39
XAR Calmar Ratio Rank: 49
XAR Martin Ratio Rank: 41

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. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional International Small Cap ETF (DFIS) and SPDR S&P Aerospace & Defense ETF (XAR). 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	XAR	Difference
Sharpe ratio: Return per unit of total volatility	1.71	1.39	+0.33
Sortino ratio: Return per unit of downside risk	2.39	2.02	+0.37
Omega ratio: Gain probability vs. loss probability	1.31	1.23	+0.07
Calmar ratio: Return relative to maximum drawdown	2.03	2.17	-0.14
Martin ratio: Return relative to average drawdown	7.79	6.13	+1.66
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. XAR - Sharpe Ratio Comparison

The current DFIS Sharpe Ratio is 1.71, which is comparable to the XAR Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of DFIS and XAR, 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	XAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.71	1.39	+0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.68	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.73	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.84	-0.20

Drawdowns

DFIS vs. XAR - Drawdown Comparison

The maximum DFIS drawdown since its inception was -27.23%, smaller than the maximum XAR drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for DFIS and XAR.

Drawdown Indicators

	DFIS	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-27.23%	-46.37%	+19.14%
Max Drawdown (1Y) Largest decline over 1 year	-12.44%	-17.22%	+4.78%
Max Drawdown (3Y) Largest decline over 3 years	-13.55%	-19.73%	+6.18%
Max Drawdown (5Y) Largest decline over 5 years	—	-32.40%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-46.37%	—
Current Drawdown Current decline from peak	-3.55%	-7.35%	+3.80%
Average Drawdown Average peak-to-trough decline	-6.16%	-6.78%	+0.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.23%	6.09%	-2.86%

Volatility

DFIS vs. XAR - Volatility Comparison

The current volatility for Dimensional International Small Cap ETF (DFIS) is 4.81%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 9.09%. This indicates that DFIS experiences smaller price fluctuations and is considered to be less risky than XAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFIS	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.81%	9.09%	-4.28%
Volatility (6M) Calculated over the trailing 6-month period	12.36%	22.58%	-10.22%
Volatility (1Y) Calculated over the trailing 1-year period	14.80%	27.05%	-12.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.35%	23.46%	-6.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.35%	24.65%	-7.30%

DFIS vs. XAR - Expense Ratio Comparison

DFIS has a 0.39% expense ratio, which is higher than XAR's 0.35% expense ratio.

Dividends

DFIS vs. XAR - Dividend Comparison

DFIS's dividend yield for the trailing twelve months is around 2.05%, more than XAR's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFIS Dimensional International Small Cap ETF	2.05%	2.23%	2.19%	2.36%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XAR SPDR S&P Aerospace & Defense ETF	0.32%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Frequently Asked Questions

Can I hold both DFIS and XAR in my portfolio?

DFIS and XAR have a correlation of 0.56, 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 XAR?

XAR has higher volatility (9.09%) compared to DFIS (4.81%). In terms of maximum drawdown, DFIS dropped -27.23% vs XAR's -46.37%.

Which ETF is better, DFIS or XAR?

On 3-year performance, XAR leads with 32.47% vs 18.49% for DFIS. On fees, XAR is cheaper at 0.35% per year. On volatility, DFIS has been the lower-risk option at 4.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFIS or XAR?

Over the 3-year period, XAR has performed better with a 32.47% return vs 18.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFIS or XAR?

XAR is cheaper with a 0.35% expense ratio, compared with 0.39% for DFIS.

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

DFIS has the higher dividend yield at 2.05%, compared with 0.32% for XAR.

What is the main difference between DFIS and XAR?

DFIS is categorized as Foreign Small & Mid Cap Equities, while XAR is Aerospace & Defense. They also come from different issuers: Dimensional and State Street. Their fees differ too: 0.39% for DFIS and 0.35% for XAR.

Which has better risk-adjusted returns?

DFIS currently has the higher Sharpe Ratio (1.71 vs 1.39), 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.