DFISX vs. VTEB

Last updated Jun 13, 2026

DFISX (DFA International Small Company Portfolio) and VTEB (Vanguard Tax-Exempt Bond ETF) are both funds - DFISX is a Foreign Small & Mid Cap Equities fund managed by Dimensional, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Over the past 10 years, DFISX returned 8.53%/yr vs 2.03%/yr for VTEB. At a 0.09 correlation, their price movements are largely independent. DFISX charges 0.39%/yr vs 0.03%/yr for VTEB.

Performance

DFISX vs. VTEB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in DFA International Small Company Portfolio (DFISX) and Vanguard Tax-Exempt Bond ETF (VTEB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFISX achieves a 7.65% return, which is significantly higher than VTEB's 1.44% return. Over the past 10 years, DFISX has outperformed VTEB with an annualized return of 8.53%, while VTEB has yielded a comparatively lower 2.03% annualized return.

DFISX

• 1D: 2.27%
• 1M: 0.36%
• YTD: 7.65%
• 6M: 9.88%
• 1Y: 23.06%
• 3Y*: 17.56%
• 5Y*: 6.74%
• 10Y*: 8.53%

VTEB

• 1D: -0.08%
• 1M: 0.78%
• YTD: 1.44%
• 6M: 1.95%
• 1Y: 6.57%
• 3Y*: 3.44%
• 5Y*: 0.80%
• 10Y*: 2.03%

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

DFISX vs. VTEB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFISX DFA International Small Company Portfolio	7.65%	36.35%	3.76%	14.46%	-17.13%	10.71%	9.27%	24.18%	-19.42%	24.78%
VTEB Vanguard Tax-Exempt Bond ETF	1.44%	3.72%	1.31%	6.15%	-7.99%	1.14%	5.19%	7.35%	1.04%	4.87%

Correlation

The correlation between DFISX and VTEB is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (10Y) Calculated over the trailing 10-year period	0.11
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015	0.09

Over the past year, DFISX and VTEB have become more correlated (0.35) than their long-term average of 0.09, meaning their price movements have been converging.

Return for Risk

DFISX vs. VTEB — Risk / Return Rank

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

DFISX

DFISX Risk / Return Rank: 44
DFISX Sharpe Ratio Rank: 48
DFISX Sortino Ratio Rank: 48
DFISX Omega Ratio Rank: 46
DFISX Calmar Ratio Rank: 38
DFISX Martin Ratio Rank: 39

VTEB

VTEB Risk / Return Rank: 74
VTEB Sharpe Ratio Rank: 85
VTEB Sortino Ratio Rank: 88
VTEB Omega Ratio Rank: 90
VTEB Calmar Ratio Rank: 53
VTEB Martin Ratio Rank: 54

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.

DFISX vs. VTEB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for DFA International Small Company Portfolio (DFISX) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.

	DFISX	VTEB	Difference
Sharpe ratio: Return per unit of total volatility	1.60	2.38	-0.77
Sortino ratio: Return per unit of downside risk	2.28	3.50	-1.21
Omega ratio: Gain probability vs. loss probability	1.29	1.51	-0.22
Calmar ratio: Return relative to maximum drawdown	1.90	2.35	-0.45
Martin ratio: Return relative to average drawdown	6.86	8.30	-1.44

DFISX vs. VTEB - Sharpe Ratio Comparison

The current DFISX Sharpe Ratio is 1.60, which is lower than the VTEB Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of DFISX and VTEB, 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

DFISX vs. VTEB - Drawdown Comparison

The maximum DFISX drawdown since its inception was -60.66%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for DFISX and VTEB.

Drawdown Indicators

	DFISX	VTEB	Difference
Max Drawdown Largest peak-to-trough decline	-60.66%	-17.00%	-43.66%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-2.71%	-9.25%
Max Drawdown (3Y) Largest decline over 3 years	-13.68%	-5.53%	-8.15%
Max Drawdown (5Y) Largest decline over 5 years	-35.06%	-12.64%	-22.42%
Max Drawdown (10Y) Largest decline over 10 years	-43.00%	-17.00%	-26.00%
Current Drawdown Current decline from peak	-3.11%	-0.54%	-2.57%
Average Drawdown Average peak-to-trough decline	-11.64%	-2.32%	-9.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	0.77%	+2.52%

Volatility

DFISX vs. VTEB - Volatility Comparison

DFA International Small Company Portfolio (DFISX) has a higher volatility of 4.59% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.93%. This indicates that DFISX's price experiences larger fluctuations and is considered to be riskier than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFISX	VTEB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.59%	0.93%	+3.66%
Volatility (6M) Calculated over the trailing 6-month period	11.57%	2.04%	+9.53%
Volatility (1Y) Calculated over the trailing 1-year period	14.17%	2.70%	+11.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.96%	3.90%	+12.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.21%	5.26%	+10.95%

DFISX vs. VTEB - Expense Ratio Comparison

DFISX has a 0.39% expense ratio, which is higher than VTEB's 0.03% expense ratio.

Dividends

DFISX vs. VTEB - Dividend Comparison

DFISX's dividend yield for the trailing twelve months is around 2.92%, less than VTEB's 3.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFISX DFA International Small Company Portfolio	2.92%	3.19%	3.39%	3.01%	3.51%	3.06%	1.71%	4.54%	7.74%	1.27%	4.44%	4.47%
VTEB Vanguard Tax-Exempt Bond ETF	3.36%	3.29%	3.14%	2.79%	2.09%	1.64%	1.99%	2.30%	2.25%	1.96%	1.66%	0.58%

Frequently Asked Questions

Can I hold both DFISX and VTEB in my portfolio?

DFISX and VTEB have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFISX or VTEB?

DFISX has higher volatility (4.59%) compared to VTEB (0.93%). In terms of maximum drawdown, DFISX dropped -60.66% vs VTEB's -17.00%.

Which has better risk-adjusted returns?

VTEB currently has the higher Sharpe Ratio (2.38 vs 1.60), 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.