DFNM vs. DFAC

Last updated Jun 3, 2026

DFNM (Dimensional National Municipal Bond ETF) and DFAC (Dimensional U.S. Core Equity 2 ETF) are both exchange-traded funds - DFNM is a Municipal Bonds fund actively managed by Dimensional, while DFAC is a Large Cap Blend Equities fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFNM returned 3.39%/yr vs 20.83%/yr for DFAC. At a 0.13 correlation, their price movements are largely independent. Both charge a 0.17% expense ratio.

Performance

DFNM vs. DFAC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional National Municipal Bond ETF (DFNM) and Dimensional U.S. Core Equity 2 ETF (DFAC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFNM achieves a 1.27% return, which is significantly lower than DFAC's 12.66% return.

DFNM

• 1D: 0.08%
• 1M: 0.38%
• YTD: 1.27%
• 6M: 1.66%
• 1Y: 5.31%
• 3Y*: 3.39%
• 5Y*: —
• 10Y*: —

DFAC

• 1D: 0.50%
• 1M: 4.81%
• YTD: 12.66%
• 6M: 13.61%
• 1Y: 30.86%
• 3Y*: 20.83%
• 5Y*: —
• 10Y*: —

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

DFNM vs. DFAC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFNM Dimensional National Municipal Bond ETF	1.27%	3.87%	1.19%	3.97%	-4.02%	0.47%
DFAC Dimensional U.S. Core Equity 2 ETF	12.66%	15.66%	19.61%	21.96%	-14.93%	0.09%

Correlation

The correlation between DFNM and DFAC is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.13

Return for Risk

DFNM vs. DFAC — Risk / Return Rank

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

DFNM

DFNM Risk / Return Rank: 77
DFNM Sharpe Ratio Rank: 88
DFNM Sortino Ratio Rank: 91
DFNM Omega Ratio Rank: 94
DFNM Calmar Ratio Rank: 54
DFNM Martin Ratio Rank: 56

DFAC

DFAC Risk / Return Rank: 77
DFAC Sharpe Ratio Rank: 78
DFAC Sortino Ratio Rank: 78
DFAC Omega Ratio Rank: 76
DFAC Calmar Ratio Rank: 72
DFAC 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.

DFNM vs. DFAC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) and Dimensional U.S. Core Equity 2 ETF (DFAC). 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.

	DFNM	DFAC	Difference
Sharpe ratio Return per unit of total volatility	3.04	2.56	+0.49
Sortino ratio Return per unit of downside risk	4.41	3.52	+0.89
Omega ratio Gain probability vs. loss probability	1.69	1.46	+0.24
Calmar ratio Return relative to maximum drawdown	2.77	3.69	-0.92
Martin ratio Return relative to average drawdown	10.07	16.39	-6.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFNM vs. DFAC - Sharpe Ratio Comparison

The current DFNM Sharpe Ratio is 3.04, which is comparable to the DFAC Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of DFNM and DFAC, 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

	DFNM	DFAC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.04	2.56	+0.49
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.71	-0.14

Drawdowns

DFNM vs. DFAC - Drawdown Comparison

The maximum DFNM drawdown since its inception was -6.99%, smaller than the maximum DFAC drawdown of -23.12%. Use the drawdown chart below to compare losses from any high point for DFNM and DFAC.

Drawdown Indicators

	DFNM	DFAC	Difference
Max Drawdown Largest peak-to-trough decline	-6.99%	-23.12%	+16.13%
Max Drawdown (1Y) Largest decline over 1 year	-1.84%	-8.49%	+6.65%
Max Drawdown (3Y) Largest decline over 3 years	-2.82%	-20.02%	+17.20%
Current Drawdown Current decline from peak	-0.38%	0.00%	-0.38%
Average Drawdown Average peak-to-trough decline	-1.96%	-5.45%	+3.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	1.91%	-1.41%

Volatility

DFNM vs. DFAC - Volatility Comparison

The current volatility for Dimensional National Municipal Bond ETF (DFNM) is 0.59%, while Dimensional U.S. Core Equity 2 ETF (DFAC) has a volatility of 2.94%. This indicates that DFNM experiences smaller price fluctuations and is considered to be less risky than DFAC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFNM	DFAC	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	2.94%	-2.35%
Volatility (6M) Calculated over the trailing 6-month period	1.29%	8.94%	-7.65%
Volatility (1Y) Calculated over the trailing 1-year period	1.77%	12.13%	-10.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.54%	17.13%	-14.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.54%	17.13%	-14.59%

DFNM vs. DFAC - Expense Ratio Comparison

Both DFNM and DFAC have an expense ratio of 0.17%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

DFNM vs. DFAC - Dividend Comparison

DFNM's dividend yield for the trailing twelve months is around 2.89%, more than DFAC's 0.90% yield.

Position	TTM	2025	2024	2023	2022	2021
DFAC Dimensional U.S. Core Equity 2 ETF	0.90%	0.97%	1.03%	1.20%	1.50%	0.88%
DFNM Dimensional National Municipal Bond ETF	2.89%	2.94%	2.74%	2.39%	1.16%	0.05%

Frequently Asked Questions

Can I hold both DFNM and DFAC in my portfolio?

DFNM and DFAC have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFNM or DFAC?

DFAC has higher volatility (2.94%) compared to DFNM (0.59%). In terms of maximum drawdown, DFNM dropped -6.99% vs DFAC's -23.12%.

Which ETF is better, DFNM or DFAC?

On 3-year performance, DFAC leads with 20.83% vs 3.39% for DFNM. Both ETFs have the same 0.17% expense ratio. On volatility, DFNM has been the lower-risk option at 0.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFNM or DFAC?

Over the 3-year period, DFAC has performed better with a 20.83% return vs 3.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFNM or DFAC?

DFNM and DFAC have the same expense ratio: 0.17% per year.

Which ETF pays a higher dividend yield, DFNM or DFAC?

DFNM has the higher dividend yield at 2.89%, compared with 0.90% for DFAC.

What is the main difference between DFNM and DFAC?

DFNM is categorized as Municipal Bonds, while DFAC is Large Cap Blend Equities.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (3.04 vs 2.56), 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.