DFSE vs. DEM

Last updated Aug 4, 2026

DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both exchange-traded funds - DFSE is a Emerging Markets Equities fund actively managed by Dimensional, while DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index. DFSE is actively managed, while DEM is passively managed. Over the past 3 years, DFSE returned 16.70%/yr vs 17.15%/yr for DEM. Their correlation of 0.86 means they have usually moved in the same direction. DFSE charges 0.41%/yr vs 0.63%/yr for DEM.

Performance

DFSE vs. DEM - Performance Comparison

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

Returns By Period

In the year-to-date period, DFSE achieves a 13.25% return, which is significantly lower than DEM's 17.69% return.

DFSE

• 1D: 1.24%
• 1M: -1.59%
• 6M: 5.72%
• YTD: 13.25%
• 1Y: 25.61%
• 3Y*: 16.70%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 19.81%

DEM

• 1D: 0.52%
• 1M: 1.12%
• 6M: 10.61%
• YTD: 17.69%
• 1Y: 25.38%
• 3Y*: 17.15%
• 5Y*: 10.09%
• 10Y*: 9.05%
• ALL TIME*: 4.95%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DEM WisdomTree Emerging Markets Equity Income Fund	$8.16M	$9.32M	$10.88M
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	$1.30M	$1.31M	$1.27M

DFSE vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	13.25%	28.22%	6.90%	14.66%	10.68%
DEM WisdomTree Emerging Markets Equity Income Fund	17.69%	21.29%	4.46%	20.93%	10.96%

Correlation

The correlation between DFSE and DEM is 0.85, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.85
Correlation (3Y) Balances recent behavior with more history.	0.85
Correlation (All Time) Calculated using the full available price history since Nov 2, 2022	0.86

The correlation between DFSE and DEM has been stable across timeframes, ranging from 0.85 to 0.86 - a consistent structural relationship.

DFSE vs. DEM - Sectors Allocation Comparison

Sectors	DFSE	DEM
Technology	39.3%	17.5%
Financial Services	17.0%	21.9%
Industrials	11.5%	8.9%
Consumer Cyclical	9.1%	5.4%
Communication Services	5.9%	3.0%
Basic Materials	4.8%	3.7%
Healthcare	4.3%	0.6%
Consumer Defensive	3.2%	5.8%
Real Estate	2.2%	2.9%
Utilities	1.7%	3.0%
Energy	1.1%	6.2%

Return for Risk

DFSE vs. DEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DFSE

DFSE Risk / Return Rank: 46
DFSE Sharpe Ratio Rank: 44
DFSE Sortino Ratio Rank: 42
DFSE Omega Ratio Rank: 45
DFSE Calmar Ratio Rank: 52
DFSE Martin Ratio Rank: 48

DEM

DEM Risk / Return Rank: 75
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 71
DEM Calmar Ratio Rank: 84
DEM Martin Ratio Rank: 75

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DFSE vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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.

	DFSE	DEM	Difference
Sharpe ratio: Return per unit of total volatility	1.16	1.70	-0.54
Sortino ratio: Return per unit of downside risk	1.64	2.36	-0.72
Omega ratio: Gain probability vs. loss probability	1.23	1.31	-0.08
Calmar ratio: Return relative to maximum drawdown	2.00	3.23	-1.23
Martin ratio: Return relative to average drawdown	5.91	9.72	-3.81

DFSE vs. DEM - Sharpe Ratio Comparison

The current DFSE Sharpe Ratio is 1.16, which is lower than the DEM Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of DFSE and DEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DFSE vs. DEM - Drawdown Comparison

The maximum DFSE drawdown since its inception was -19.77%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for DFSE and DEM.

Drawdown Indicators

	DFSE	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-51.85%	+32.08%
Max Drawdown (1Y) Largest decline over 1 year	-12.88%	-7.89%	-4.99%
Max Drawdown (3Y) Largest decline over 3 years	-19.77%	-15.64%	-4.13%
Max Drawdown (5Y) Largest decline over 5 years	—	-27.18%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-7.97%	-3.06%	-4.91%
Average Drawdown Average peak-to-trough decline	-4.08%	-12.82%	+8.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.35%	2.62%	+1.73%

Volatility

DFSE vs. DEM - Volatility Comparison

Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) has a higher volatility of 8.22% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 5.13%. This indicates that DFSE's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSE	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.22%	5.13%	+3.09%
Volatility (6M) Calculated over the trailing 6-month period	20.14%	13.19%	+6.95%
Volatility (1Y) Calculated over the trailing 1-year period	22.19%	15.02%	+7.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.47%	15.61%	+2.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.47%	17.86%	+0.61%

DFSE vs. DEM - Expense Ratio Comparison

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

Dividends

DFSE vs. DEM - Dividend Comparison

DFSE's dividend yield for the trailing twelve months is around 1.95%, less than DEM's 4.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.16%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	1.95%	2.26%	2.06%	2.06%	0.36%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFSE and DEM in my portfolio?

DFSE and DEM have a correlation of 0.85, 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 DEM?

DFSE has higher volatility (8.22%) compared to DEM (5.13%). In terms of maximum drawdown, DFSE dropped -19.77% vs DEM's -51.85%.

Which ETF is better, DFSE or DEM?

On 3-year performance, DEM leads with 17.15% vs 16.70% for DFSE. On fees, DFSE is cheaper at 0.41% per year. On volatility, DEM has been the lower-risk option at 5.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSE or DEM?

Over the 3-year period, DEM has performed better with a 17.15% return vs 16.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSE or DEM?

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

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

DEM has the higher dividend yield at 4.16%, compared with 1.95% for DFSE.

What is the main difference between DFSE and DEM?

DFSE is categorized as Emerging Markets Equities, while DEM is Dividend. They also come from different issuers: Dimensional and WisdomTree. Their fees differ too: 0.41% for DFSE and 0.63% for DEM.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (1.70 vs 1.16), 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.