DFNM vs. DFCA

Last updated Jun 4, 2026

DFNM (Dimensional National Municipal Bond ETF) and DFCA (Dimensional California Municipal Bond ETF) are both Municipal Bonds funds from Dimensional. Both are actively managed. Over the past year, DFNM returned 5.29% vs 5.05% for DFCA. A 0.72 correlation means they provide meaningful diversification when combined. DFNM charges 0.17%/yr vs 0.19%/yr for DFCA.

Performance

DFNM vs. DFCA - Performance Comparison

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

Returns By Period

In the year-to-date period, DFNM achieves a 1.29% return, which is significantly higher than DFCA's 1.07% return.

DFNM

• 1D: 0.02%
• 1M: 0.42%
• YTD: 1.29%
• 6M: 1.71%
• 1Y: 5.29%
• 3Y*: 3.40%
• 5Y*: —
• 10Y*: —

DFCA

• 1D: -0.03%
• 1M: 0.54%
• YTD: 1.07%
• 6M: 1.46%
• 1Y: 5.05%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFNM vs. DFCA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFNM Dimensional National Municipal Bond ETF	1.29%	3.87%	1.19%	3.20%
DFCA Dimensional California Municipal Bond ETF	1.07%	2.99%	1.49%	2.59%

Correlation

The correlation between DFNM and DFCA is 0.68, 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	0.68
Correlation (All Time) Calculated using the full available price history since Jun 28, 2023	0.72

The correlation between DFNM and DFCA has been stable across timeframes, ranging from 0.68 to 0.72 - a consistent structural relationship.

Return for Risk

DFNM vs. DFCA — Risk / Return Rank

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

DFNM

DFNM Risk / Return Rank: 79
DFNM Sharpe Ratio Rank: 89
DFNM Sortino Ratio Rank: 91
DFNM Omega Ratio Rank: 94
DFNM Calmar Ratio Rank: 59
DFNM Martin Ratio Rank: 59

DFCA

DFCA Risk / Return Rank: 76
DFCA Sharpe Ratio Rank: 86
DFCA Sortino Ratio Rank: 90
DFCA Omega Ratio Rank: 91
DFCA Calmar Ratio Rank: 58
DFCA Martin Ratio Rank: 55

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. DFCA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) and Dimensional California Municipal Bond ETF (DFCA). 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	DFCA	Difference
Sharpe ratio: Return per unit of total volatility	3.03	2.87	+0.16
Sortino ratio: Return per unit of downside risk	4.39	4.24	+0.15
Omega ratio: Gain probability vs. loss probability	1.69	1.61	+0.08
Calmar ratio: Return relative to maximum drawdown	2.89	2.87	+0.02
Martin ratio: Return relative to average drawdown	10.48	9.29	+1.19
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. DFCA - Sharpe Ratio Comparison

The current DFNM Sharpe Ratio is 3.03, which is comparable to the DFCA Sharpe Ratio of 2.87. The chart below compares the historical Sharpe Ratios of DFNM and DFCA, 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	DFCA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.03	2.87	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	1.13	-0.55

Drawdowns

DFNM vs. DFCA - Drawdown Comparison

The maximum DFNM drawdown since its inception was -6.99%, which is greater than DFCA's maximum drawdown of -3.28%. Use the drawdown chart below to compare losses from any high point for DFNM and DFCA.

Drawdown Indicators

	DFNM	DFCA	Difference
Max Drawdown Largest peak-to-trough decline	-6.99%	-3.28%	-3.71%
Max Drawdown (1Y) Largest decline over 1 year	-1.84%	-1.77%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-2.82%	—	—
Current Drawdown Current decline from peak	-0.36%	-0.52%	+0.16%
Average Drawdown Average peak-to-trough decline	-1.96%	-0.70%	-1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.51%	0.55%	-0.04%

Volatility

DFNM vs. DFCA - Volatility Comparison

Dimensional National Municipal Bond ETF (DFNM) has a higher volatility of 0.58% compared to Dimensional California Municipal Bond ETF (DFCA) at 0.55%. This indicates that DFNM's price experiences larger fluctuations and is considered to be riskier than DFCA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFNM	DFCA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.58%	0.55%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.29%	1.30%	-0.01%
Volatility (1Y) Calculated over the trailing 1-year period	1.75%	1.77%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.54%	2.48%	+0.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.54%	2.48%	+0.06%

DFNM vs. DFCA - Expense Ratio Comparison

DFNM has a 0.17% expense ratio, which is lower than DFCA's 0.19% 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. DFCA - Dividend Comparison

DFNM's dividend yield for the trailing twelve months is around 2.89%, more than DFCA's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021
DFCA Dimensional California Municipal Bond ETF	2.69%	2.86%	2.86%	1.24%	0.00%	0.00%
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 DFCA in my portfolio?

DFNM and DFCA have a correlation of 0.68, 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 DFCA?

DFNM has higher volatility (0.58%) compared to DFCA (0.55%). In terms of maximum drawdown, DFNM dropped -6.99% vs DFCA's -3.28%.

Which ETF is better, DFNM or DFCA?

On 1-year performance, DFNM leads with 5.29% vs 5.05% for DFCA. On fees, DFNM is cheaper at 0.17% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFNM or DFCA?

Over the 1-year period, DFNM has performed better with a 5.29% return vs 5.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFNM or DFCA?

DFNM is cheaper with a 0.17% expense ratio, compared with 0.19% for DFCA.

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

DFNM has the higher dividend yield at 2.89%, compared with 2.69% for DFCA.

What is the main difference between DFNM and DFCA?

Their fees differ too: 0.17% for DFNM and 0.19% for DFCA.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (3.03 vs 2.87), 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.