DFNM vs. DFAI

Last updated Jun 24, 2026

DFNM (Dimensional National Municipal Bond ETF) and DFAI (Dimensional International Core Equity Market ETF) are both exchange-traded funds - DFNM is a Municipal Bonds fund actively managed by Dimensional, while DFAI is a Foreign Large Cap Equities fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFNM returned 3.10%/yr vs 17.77%/yr for DFAI. At a 0.19 correlation, their price movements are largely independent. DFNM charges 0.17%/yr vs 0.18%/yr for DFAI.

Performance

DFNM vs. DFAI - Performance Comparison

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

Returns By Period

In the year-to-date period, DFNM achieves a 1.14% return, which is significantly lower than DFAI's 7.50% return.

DFNM

• 1D: -0.29%
• 1M: 0.63%
• YTD: 1.14%
• 6M: 1.27%
• 1Y: 4.87%
• 3Y*: 3.10%
• 5Y*: —
• 10Y*: —

DFAI

• 1D: -2.83%
• 1M: -1.64%
• YTD: 7.50%
• 6M: 6.97%
• 1Y: 23.12%
• 3Y*: 17.77%
• 5Y*: 9.35%
• 10Y*: —

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

DFNM vs. DFAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
DFNM Dimensional National Municipal Bond ETF	1.14%	3.87%	1.19%	3.97%	-4.02%	0.40%
DFAI Dimensional International Core Equity Market ETF	7.50%	34.04%	4.68%	17.60%	-12.95%	-1.28%

Correlation

The correlation between DFNM and DFAI is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021	0.19

Return for Risk

DFNM vs. DFAI — Risk / Return Rank

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

DFNM

DFNM Risk / Return Rank: 78
DFNM Sharpe Ratio Rank: 90
DFNM Sortino Ratio Rank: 91
DFNM Omega Ratio Rank: 94
DFNM Calmar Ratio Rank: 58
DFNM Martin Ratio Rank: 58

DFAI

DFAI Risk / Return Rank: 47
DFAI Sharpe Ratio Rank: 47
DFAI Sortino Ratio Rank: 46
DFAI Omega Ratio Rank: 46
DFAI Calmar Ratio Rank: 44
DFAI Martin Ratio Rank: 50

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. DFAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) and Dimensional International Core Equity Market ETF (DFAI). 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.

	DFNM	DFAI	Difference
Sharpe ratio: Return per unit of total volatility	2.80	1.57	+1.23
Sortino ratio: Return per unit of downside risk	4.00	2.21	+1.79
Omega ratio: Gain probability vs. loss probability	1.63	1.29	+0.35
Calmar ratio: Return relative to maximum drawdown	2.66	2.12	+0.54
Martin ratio: Return relative to average drawdown	9.53	8.25	+1.28

DFNM vs. DFAI - Sharpe Ratio Comparison

The current DFNM Sharpe Ratio is 2.80, which is higher than the DFAI Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of DFNM and DFAI, 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

DFNM vs. DFAI - Drawdown Comparison

The maximum DFNM drawdown since its inception was -6.99%, smaller than the maximum DFAI drawdown of -27.44%. Use the drawdown chart below to compare losses from any high point for DFNM and DFAI.

Drawdown Indicators

	DFNM	DFAI	Difference
Max Drawdown Largest peak-to-trough decline	-6.99%	-27.44%	+20.45%
Max Drawdown (1Y) Largest decline over 1 year	-1.84%	-10.95%	+9.11%
Max Drawdown (3Y) Largest decline over 3 years	-2.82%	-13.25%	+10.43%
Max Drawdown (5Y) Largest decline over 5 years	—	-27.44%	—
Current Drawdown Current decline from peak	-0.50%	-3.10%	+2.60%
Average Drawdown Average peak-to-trough decline	-1.94%	-5.09%	+3.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.51%	2.81%	-2.30%

Volatility

DFNM vs. DFAI - Volatility Comparison

The current volatility for Dimensional National Municipal Bond ETF (DFNM) is 0.51%, while Dimensional International Core Equity Market ETF (DFAI) has a volatility of 5.38%. This indicates that DFNM experiences smaller price fluctuations and is considered to be less risky than DFAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFNM	DFAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.51%	5.38%	-4.87%
Volatility (6M) Calculated over the trailing 6-month period	1.33%	12.60%	-11.27%
Volatility (1Y) Calculated over the trailing 1-year period	1.74%	14.77%	-13.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.53%	16.03%	-13.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.53%	15.77%	-13.24%

DFNM vs. DFAI - Expense Ratio Comparison

DFNM has a 0.17% expense ratio, which is lower than DFAI's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DFNM vs. DFAI - Dividend Comparison

DFNM's dividend yield for the trailing twelve months is around 2.90%, more than DFAI's 2.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
DFAI Dimensional International Core Equity Market ETF	2.29%	2.45%	2.72%	2.64%	2.72%	2.06%	0.09%
DFNM Dimensional National Municipal Bond ETF	2.90%	2.94%	2.74%	2.39%	1.16%	0.05%	0.00%

Frequently Asked Questions

Can I hold both DFNM and DFAI in my portfolio?

DFNM and DFAI have a correlation of 0.28, 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 DFAI?

DFAI has higher volatility (5.38%) compared to DFNM (0.51%). In terms of maximum drawdown, DFNM dropped -6.99% vs DFAI's -27.44%.

Which ETF is better, DFNM or DFAI?

On 3-year performance, DFAI leads with 17.77% vs 3.10% for DFNM. On fees, DFNM is cheaper at 0.17% per year. On volatility, DFNM has been the lower-risk option at 0.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFNM or DFAI?

Over the 3-year period, DFAI has performed better with a 17.77% return vs 3.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFNM or DFAI?

DFNM is cheaper with a 0.17% expense ratio, compared with 0.18% for DFAI.

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

DFNM has the higher dividend yield at 2.90%, compared with 2.29% for DFAI.

What is the main difference between DFNM and DFAI?

DFNM is categorized as Municipal Bonds, while DFAI is Foreign Large Cap Equities. Their fees differ too: 0.17% for DFNM and 0.18% for DFAI.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (2.80 vs 1.57), 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.