DFSE vs. CAOS

Last updated Jun 4, 2026

DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - DFSE is a Emerging Markets Diversified fund actively managed by Dimensional, while CAOS is a Options Trading fund actively managed by Alpha Architect. Both are actively managed. Over the past 3 years, DFSE returned 21.00%/yr vs 4.26%/yr for CAOS. At a 0.01 correlation, their price movements are largely independent. DFSE charges 0.41%/yr vs 0.63%/yr for CAOS.

Performance

DFSE vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFSE achieves a 21.02% return, which is significantly higher than CAOS's 0.82% return.

DFSE

• 1D: -1.66%
• 1M: 5.84%
• YTD: 21.02%
• 6M: 22.69%
• 1Y: 42.80%
• 3Y*: 21.00%
• 5Y*: —
• 10Y*: —

CAOS

• 1D: 0.12%
• 1M: -0.09%
• YTD: 0.82%
• 6M: 0.69%
• 1Y: 1.88%
• 3Y*: 4.26%
• 5Y*: —
• 10Y*: —

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

DFSE vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	21.02%	28.22%	6.90%	9.08%
CAOS Alpha Architect Tail Risk ETF	0.82%	2.55%	5.33%	7.97%

Correlation

The correlation between DFSE and CAOS is -0.35, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.35
Correlation (3Y) Calculated over the trailing 3-year period	-0.06
Correlation (All Time) Calculated using the full available price history since Mar 7, 2023	0.01

The correlation between DFSE and CAOS shifts across timeframes, from -0.35 (1 year) to 0.01 (all time), reflecting how their relationship changes across market environments.

DFSE vs. CAOS - Sectors Allocation Comparison

Sectors	DFSE	CAOS
Technology	31.2%	33.1%
Financial Services	13.9%	12.4%
Industrials	12.5%	8.5%
Consumer Cyclical	10.6%	10.0%
Basic Materials	6.2%	1.9%
Communication Services	5.8%	10.4%
Healthcare	4.7%	9.6%
Consumer Defensive	3.9%	5.4%
Real Estate	2.2%	2.0%
Utilities	1.8%	2.6%
Energy	1.0%	4.1%

Return for Risk

DFSE vs. CAOS — Risk / Return Rank

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

DFSE

DFSE Risk / Return Rank: 69
DFSE Sharpe Ratio Rank: 70
DFSE Sortino Ratio Rank: 67
DFSE Omega Ratio Rank: 71
DFSE Calmar Ratio Rank: 68
DFSE Martin Ratio Rank: 68

CAOS

CAOS Risk / Return Rank: 40
CAOS Sharpe Ratio Rank: 34
CAOS Sortino Ratio Rank: 37
CAOS Omega Ratio Rank: 39
CAOS Calmar Ratio Rank: 49
CAOS Martin Ratio Rank: 39

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. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Alpha Architect Tail Risk ETF (CAOS). 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	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	2.30	1.24	+1.06
Sortino ratio: Return per unit of downside risk	3.06	1.98	+1.08
Omega ratio: Gain probability vs. loss probability	1.42	1.26	+0.17
Calmar ratio: Return relative to maximum drawdown	3.34	2.49	+0.85
Martin ratio: Return relative to average drawdown	12.45	6.22	+6.23
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. CAOS - Sharpe Ratio Comparison

The current DFSE Sharpe Ratio is 2.30, which is higher than the CAOS Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of DFSE and CAOS, 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	CAOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	1.24	+1.06
Sharpe Ratio (All Time) Calculated using the full available price history	1.34	1.21	+0.13

Drawdowns

DFSE vs. CAOS - Drawdown Comparison

The maximum DFSE drawdown since its inception was -19.77%, which is greater than CAOS's maximum drawdown of -3.60%. Use the drawdown chart below to compare losses from any high point for DFSE and CAOS.

Drawdown Indicators

	DFSE	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-3.60%	-16.17%
Max Drawdown (1Y) Largest decline over 1 year	-12.88%	-0.76%	-12.12%
Max Drawdown (3Y) Largest decline over 3 years	-19.77%	-3.60%	-16.17%
Current Drawdown Current decline from peak	-1.66%	-1.07%	-0.59%
Average Drawdown Average peak-to-trough decline	-3.99%	-0.90%	-3.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	0.30%	+3.15%

Volatility

DFSE vs. CAOS - Volatility Comparison

Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) has a higher volatility of 7.93% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.26%. This indicates that DFSE's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSE	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.93%	0.26%	+7.67%
Volatility (6M) Calculated over the trailing 6-month period	16.13%	1.03%	+15.10%
Volatility (1Y) Calculated over the trailing 1-year period	18.72%	1.52%	+17.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.63%	4.26%	+13.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.63%	4.26%	+13.37%

DFSE vs. CAOS - Expense Ratio Comparison

DFSE has a 0.41% expense ratio, which is lower than CAOS's 0.63% expense ratio.

Dividends

DFSE vs. CAOS - Dividend Comparison

DFSE's dividend yield for the trailing twelve months is around 1.84%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%	0.00%	0.00%	0.00%
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	1.84%	2.26%	2.06%	2.06%	0.36%

Frequently Asked Questions

Can I hold both DFSE and CAOS in my portfolio?

DFSE and CAOS have a correlation of -0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFSE or CAOS?

DFSE has higher volatility (7.93%) compared to CAOS (0.26%). In terms of maximum drawdown, DFSE dropped -19.77% vs CAOS's -3.60%.

Which ETF is better, DFSE or CAOS?

On 3-year performance, DFSE leads with 21.00% vs 4.26% for CAOS. On fees, DFSE is cheaper at 0.41% per year. On volatility, CAOS has been the lower-risk option at 0.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSE or CAOS?

Over the 3-year period, DFSE has performed better with a 21.00% return vs 4.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSE or CAOS?

DFSE is cheaper with a 0.41% expense ratio, compared with 0.63% for CAOS.

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

DFSE has the higher dividend yield at 1.84%, compared with 0.00% for CAOS.

What is the main difference between DFSE and CAOS?

DFSE is categorized as Emerging Markets Diversified, while CAOS is Options Trading. They also come from different issuers: Dimensional and Alpha Architect. Their fees differ too: 0.41% for DFSE and 0.63% for CAOS.

Which has better risk-adjusted returns?

DFSE currently has the higher Sharpe Ratio (2.30 vs 1.24), 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.