DFNM vs. DFSV

Last updated Jun 3, 2026

DFNM (Dimensional National Municipal Bond ETF) and DFSV (Dimensional US Small Cap Value ETF) are both exchange-traded funds - DFNM is a Municipal Bonds fund actively managed by Dimensional, while DFSV is a Small Cap Value Equities fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, DFNM returned 3.39%/yr vs 16.87%/yr for DFSV. At a 0.11 correlation, their price movements are largely independent. DFNM charges 0.17%/yr vs 0.31%/yr for DFSV.

Performance

DFNM vs. DFSV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional National Municipal Bond ETF (DFNM) and Dimensional US Small Cap Value ETF (DFSV). 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 DFSV's 15.01% return.

DFNM

• 1D: 0.08%
• 1M: 0.40%
• YTD: 1.27%
• 6M: 1.69%
• 1Y: 5.26%
• 3Y*: 3.39%
• 5Y*: —
• 10Y*: —

DFSV

• 1D: -0.84%
• 1M: 1.32%
• YTD: 15.01%
• 6M: 14.63%
• 1Y: 33.99%
• 3Y*: 16.87%
• 5Y*: —
• 10Y*: —

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

DFNM vs. DFSV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFNM Dimensional National Municipal Bond ETF	1.27%	3.87%	1.19%	3.97%	-2.02%
DFSV Dimensional US Small Cap Value ETF	15.01%	8.59%	7.13%	19.26%	0.60%

Correlation

The correlation between DFNM and DFSV is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (All Time) Calculated using the full available price history since Feb 25, 2022	0.11

Return for Risk

DFNM vs. DFSV — 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

DFSV

DFSV Risk / Return Rank: 61
DFSV Sharpe Ratio Rank: 56
DFSV Sortino Ratio Rank: 59
DFSV Omega Ratio Rank: 55
DFSV Calmar Ratio Rank: 72
DFSV Martin Ratio Rank: 63

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. DFSV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional National Municipal Bond ETF (DFNM) and Dimensional US Small Cap Value ETF (DFSV). 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	DFSV	Difference
Sharpe ratio Return per unit of total volatility	3.04	1.95	+1.10
Sortino ratio Return per unit of downside risk	4.41	2.84	+1.56
Omega ratio Gain probability vs. loss probability	1.69	1.34	+0.35
Calmar ratio Return relative to maximum drawdown	2.90	3.64	-0.74
Martin ratio Return relative to average drawdown	10.54	11.57	-1.04
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. DFSV - Sharpe Ratio Comparison

The current DFNM Sharpe Ratio is 3.04, which is higher than the DFSV Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of DFNM and DFSV, 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	DFSV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.04	1.95	+1.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.53	+0.04

Drawdowns

DFNM vs. DFSV - Drawdown Comparison

The maximum DFNM drawdown since its inception was -6.99%, smaller than the maximum DFSV drawdown of -28.02%. Use the drawdown chart below to compare losses from any high point for DFNM and DFSV.

Drawdown Indicators

	DFNM	DFSV	Difference
Max Drawdown Largest peak-to-trough decline	-6.99%	-28.02%	+21.03%
Max Drawdown (1Y) Largest decline over 1 year	-1.84%	-9.39%	+7.55%
Max Drawdown (3Y) Largest decline over 3 years	-2.82%	-28.02%	+25.20%
Current Drawdown Current decline from peak	-0.38%	-0.84%	+0.46%
Average Drawdown Average peak-to-trough decline	-1.96%	-6.71%	+4.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	2.95%	-2.45%

Volatility

DFNM vs. DFSV - Volatility Comparison

The current volatility for Dimensional National Municipal Bond ETF (DFNM) is 0.59%, while Dimensional US Small Cap Value ETF (DFSV) has a volatility of 3.95%. This indicates that DFNM experiences smaller price fluctuations and is considered to be less risky than DFSV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFNM	DFSV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	3.95%	-3.36%
Volatility (6M) Calculated over the trailing 6-month period	1.29%	11.28%	-9.99%
Volatility (1Y) Calculated over the trailing 1-year period	1.77%	17.63%	-15.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.54%	22.24%	-19.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.54%	22.24%	-19.70%

DFNM vs. DFSV - Expense Ratio Comparison

DFNM has a 0.17% expense ratio, which is lower than DFSV's 0.31% expense ratio.

Dividends

DFNM vs. DFSV - Dividend Comparison

DFNM's dividend yield for the trailing twelve months is around 2.89%, more than DFSV's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021
DFNM Dimensional National Municipal Bond ETF	2.89%	2.94%	2.74%	2.39%	1.16%	0.05%
DFSV Dimensional US Small Cap Value ETF	1.42%	1.53%	1.31%	1.29%	0.90%	0.00%

Frequently Asked Questions

Can I hold both DFNM and DFSV in my portfolio?

DFNM and DFSV have a correlation of 0.13, 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 DFSV?

DFSV has higher volatility (3.95%) compared to DFNM (0.59%). In terms of maximum drawdown, DFNM dropped -6.99% vs DFSV's -28.02%.

Which ETF is better, DFNM or DFSV?

On 3-year performance, DFSV leads with 16.87% vs 3.39% for DFNM. On fees, DFNM is cheaper at 0.17% per year. 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 DFSV?

Over the 3-year period, DFSV has performed better with a 16.87% 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 DFSV?

DFNM is cheaper with a 0.17% expense ratio, compared with 0.31% for DFSV.

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

DFNM has the higher dividend yield at 2.89%, compared with 1.42% for DFSV.

What is the main difference between DFNM and DFSV?

DFNM is categorized as Municipal Bonds, while DFSV is Small Cap Value Equities. Their fees differ too: 0.17% for DFNM and 0.31% for DFSV.

Which has better risk-adjusted returns?

DFNM currently has the higher Sharpe Ratio (3.04 vs 1.95), 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.