DFNM vs. DFSD
DFNM (Dimensional National Municipal Bond ETF) and DFSD (Dimensional Short-Duration Fixed Income ETF) are both exchange-traded funds - DFNM is a Municipal Bonds fund actively managed by Dimensional, while DFSD is a Short-Term Bond fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFNM returned 3.08%/yr vs 5.15%/yr for DFSD. Their 0.51 correlation means they have sometimes moved together and sometimes differently. DFNM charges 0.17%/yr vs 0.16%/yr for DFSD.
Performance
DFNM vs. DFSD - Performance Comparison
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Returns By Period
In the year-to-date period, DFNM achieves a 0.49% return, which is significantly lower than DFSD's 0.85% return.
DFNM
- 1D
- 0.04%
- 1M
- -1.16%
- 6M
- -0.41%
- YTD
- 0.49%
- 1Y
- 3.50%
- 3Y*
- 3.08%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 1.21%
DFSD
- 1D
- 0.06%
- 1M
- -0.16%
- 6M
- 0.49%
- YTD
- 0.85%
- 1Y
- 2.86%
- 3Y*
- 5.15%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.48%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $11.63M | $9.40M | $8.74M | |
| $24.78M | $26.75M | $25.65M |
DFNM vs. DFSD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
DFNM Dimensional National Municipal Bond ETF | 0.49% | 3.87% | 1.19% | 3.97% | -4.02% | 0.40% |
DFSD Dimensional Short-Duration Fixed Income ETF | 0.85% | 6.59% | 4.60% | 6.09% | -5.87% | -0.05% |
Correlation
The correlation between DFNM and DFSD is 0.50, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.50 |
Correlation (3Y) Balances recent behavior with more history. | 0.51 |
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021 | 0.51 |
The correlation between DFNM and DFSD has been stable across timeframes, ranging from 0.50 to 0.51 - a consistent structural relationship.
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Return for Risk
DFNM vs. DFSD — Risk / Return Rank
DFNM
DFSD
DFNM vs. DFSD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) and Dimensional Short-Duration Fixed Income ETF (DFSD). 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 | DFSD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.46 | ||
| Sortino ratioReturn per unit of downside risk | +0.50 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.28 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.91 | 1.96 | -0.05 |
| Martin ratioReturn relative to average drawdown | 6.31 | 7.19 | -0.89 |
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Drawdowns
DFNM vs. DFSD - Drawdown Comparison
The maximum DFNM drawdown since its inception was -6.99%, smaller than the maximum DFSD drawdown of -8.45%. Use the drawdown chart below to compare losses from any high point for DFNM and DFSD.
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Drawdown Indicators
| DFNM | DFSD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.99% | -8.45% | +1.46% |
Max Drawdown (1Y)Largest decline over 1 year | -1.84% | -1.47% | -0.37% |
Max Drawdown (3Y)Largest decline over 3 years | -2.79% | -1.47% | -1.32% |
Current DrawdownCurrent decline from peak | -1.16% | -0.29% | -0.87% |
Average DrawdownAverage peak-to-trough decline | -1.91% | -2.00% | +0.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.56% | 0.40% | +0.16% |
Volatility
DFNM vs. DFSD - Volatility Comparison
Dimensional National Municipal Bond ETF (DFNM) has a higher volatility of 0.67% compared to Dimensional Short-Duration Fixed Income ETF (DFSD) at 0.52%. This indicates that DFNM's price experiences larger fluctuations and is considered to be riskier than DFSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DFNM | DFSD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.67% | 0.52% | +0.15% |
Volatility (6M)Calculated over the trailing 6-month period | 1.43% | 1.59% | -0.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.77% | 1.89% | -0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.52% | 2.75% | -0.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.52% | 2.75% | -0.23% |
DFNM vs. DFSD - Expense Ratio Comparison
DFNM has a 0.17% expense ratio, which is higher than DFSD's 0.16% expense ratio. However, 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. DFSD - Dividend Comparison
DFNM's dividend yield for the trailing twelve months is around 2.97%, less than DFSD's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
DFNM Dimensional National Municipal Bond ETF | 2.97% | 2.94% | 2.74% | 2.39% | 1.16% | 0.05% |
DFSD Dimensional Short-Duration Fixed Income ETF | 4.59% | 4.12% | 4.81% | 3.89% | 2.12% | 0.11% |
Frequently Asked Questions
DFNM and DFSD have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DFNM has higher volatility (0.67%) compared to DFSD (0.52%). In terms of maximum drawdown, DFNM dropped -6.99% vs DFSD's -8.45%.
On 3-year performance, DFSD leads with 5.15% vs 3.08% for DFNM. On fees, DFSD is cheaper at 0.16% per year. On volatility, DFSD has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, DFSD has performed better with a 5.15% return vs 3.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DFSD is cheaper with a 0.16% expense ratio, compared with 0.17% for DFNM.
DFSD has the higher dividend yield at 4.59%, compared with 2.97% for DFNM.
DFNM is categorized as Municipal Bonds, while DFSD is Short-Term Bond. Their fees differ too: 0.17% for DFNM and 0.16% for DFSD.
DFNM currently has the higher Sharpe Ratio (1.99 vs 1.53), 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.
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