DFSE vs. AVEE

Last updated Jun 5, 2026

DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and AVEE (Avantis Emerging Markets Small Cap Equity ETF) are both Emerging Markets Diversified funds. Both are actively managed. Over the past year, DFSE returned 39.77% vs 25.84% for AVEE. Their correlation of 0.91 suggests significant overlap in exposure. DFSE charges 0.41%/yr vs 0.42%/yr for AVEE.

Performance

DFSE vs. AVEE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Avantis Emerging Markets Small Cap Equity ETF (AVEE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFSE achieves a 20.50% return, which is significantly higher than AVEE's 14.52% return.

DFSE

• 1D: -0.43%
• 1M: 3.57%
• YTD: 20.50%
• 6M: 22.31%
• 1Y: 39.77%
• 3Y*: 20.89%
• 5Y*: —
• 10Y*: —

AVEE

• 1D: 0.61%
• 1M: -0.58%
• YTD: 14.52%
• 6M: 15.13%
• 1Y: 25.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFSE vs. AVEE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	20.50%	28.22%	6.90%	8.28%
AVEE Avantis Emerging Markets Small Cap Equity ETF	14.52%	19.80%	2.91%	7.28%

Correlation

The correlation between DFSE and AVEE is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (All Time) Calculated using the full available price history since Nov 10, 2023	0.91

The correlation between DFSE and AVEE has been stable across timeframes, ranging from 0.91 to 0.91 - a consistent structural relationship.

DFSE vs. AVEE - Sectors Allocation Comparison

Sectors	DFSE	AVEE
Technology	31.2%	22.5%
Financial Services	13.9%	9.3%
Industrials	12.5%	18.2%
Consumer Cyclical	10.6%	11.3%
Basic Materials	6.2%	9.5%
Communication Services	5.8%	2.8%
Healthcare	4.7%	6.9%
Consumer Defensive	3.9%	5.4%
Real Estate	2.2%	4.2%
Utilities	1.8%	2.9%
Energy	1.0%	2.2%

Return for Risk

DFSE vs. AVEE — Risk / Return Rank

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

DFSE

DFSE Risk / Return Rank: 65
DFSE Sharpe Ratio Rank: 66
DFSE Sortino Ratio Rank: 62
DFSE Omega Ratio Rank: 67
DFSE Calmar Ratio Rank: 63
DFSE Martin Ratio Rank: 64

AVEE

AVEE Risk / Return Rank: 46
AVEE Sharpe Ratio Rank: 46
AVEE Sortino Ratio Rank: 44
AVEE Omega Ratio Rank: 45
AVEE Calmar Ratio Rank: 50
AVEE Martin Ratio Rank: 48

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.

DFSE vs. AVEE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Avantis Emerging Markets Small Cap Equity ETF (AVEE). 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.

	DFSE	AVEE	Difference
Sharpe ratio: Return per unit of total volatility	2.14	1.55	+0.59
Sortino ratio: Return per unit of downside risk	2.88	2.16	+0.72
Omega ratio: Gain probability vs. loss probability	1.40	1.28	+0.11
Calmar ratio: Return relative to maximum drawdown	3.10	2.44	+0.67
Martin ratio: Return relative to average drawdown	11.56	7.81	+3.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFSE vs. AVEE - Sharpe Ratio Comparison

The current DFSE Sharpe Ratio is 2.14, which is higher than the AVEE Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of DFSE and AVEE, 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

	DFSE	AVEE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.14	1.55	+0.59
Sharpe Ratio (All Time) Calculated using the full available price history	1.33	1.07	+0.26

Drawdowns

DFSE vs. AVEE - Drawdown Comparison

The maximum DFSE drawdown since its inception was -19.77%, roughly equal to the maximum AVEE drawdown of -20.21%. Use the drawdown chart below to compare losses from any high point for DFSE and AVEE.

Drawdown Indicators

	DFSE	AVEE	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-20.21%	+0.44%
Max Drawdown (1Y) Largest decline over 1 year	-12.88%	-10.65%	-2.23%
Max Drawdown (3Y) Largest decline over 3 years	-19.77%	—	—
Current Drawdown Current decline from peak	-2.08%	-1.97%	-0.11%
Average Drawdown Average peak-to-trough decline	-3.99%	-3.67%	-0.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	3.32%	+0.13%

Volatility

DFSE vs. AVEE - Volatility Comparison

Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) has a higher volatility of 7.80% compared to Avantis Emerging Markets Small Cap Equity ETF (AVEE) at 6.43%. This indicates that DFSE's price experiences larger fluctuations and is considered to be riskier than AVEE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSE	AVEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.80%	6.43%	+1.37%
Volatility (6M) Calculated over the trailing 6-month period	16.14%	13.99%	+2.15%
Volatility (1Y) Calculated over the trailing 1-year period	18.72%	16.75%	+1.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.63%	16.61%	+1.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.63%	16.61%	+1.02%

DFSE vs. AVEE - Expense Ratio Comparison

DFSE has a 0.41% expense ratio, which is lower than AVEE's 0.42% expense ratio.

Dividends

DFSE vs. AVEE - Dividend Comparison

DFSE's dividend yield for the trailing twelve months is around 1.85%, less than AVEE's 2.02% yield.

Position	TTM	2025	2024	2023	2022
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.02%	2.25%	3.26%	0.39%	0.00%
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	1.85%	2.26%	2.06%	2.06%	0.36%

Frequently Asked Questions

Can I hold both DFSE and AVEE in my portfolio?

With a correlation of 0.91, DFSE and AVEE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DFSE or AVEE?

DFSE has higher volatility (7.80%) compared to AVEE (6.43%). In terms of maximum drawdown, DFSE dropped -19.77% vs AVEE's -20.21%.

Which ETF is better, DFSE or AVEE?

On 1-year performance, DFSE leads with 39.77% vs 25.84% for AVEE. On fees, DFSE is cheaper at 0.41% per year. On volatility, AVEE has been the lower-risk option at 6.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSE or AVEE?

Over the 1-year period, DFSE has performed better with a 39.77% return vs 25.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSE or AVEE?

DFSE is cheaper with a 0.41% expense ratio, compared with 0.42% for AVEE.

Which ETF pays a higher dividend yield, DFSE or AVEE?

AVEE has the higher dividend yield at 2.02%, compared with 1.85% for DFSE.

What is the main difference between DFSE and AVEE?

They also come from different issuers: Dimensional and Avantis. Their fees differ too: 0.41% for DFSE and 0.42% for AVEE.

Which has better risk-adjusted returns?

DFSE currently has the higher Sharpe Ratio (2.14 vs 1.55), 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.