DFSE vs. DFAW

Last updated Jun 4, 2026

DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and DFAW (Dimensional World Equity ETF) are both exchange-traded funds - DFSE is a Emerging Markets Diversified fund actively managed by Dimensional, while DFAW is a Global Equities fund actively managed by Dimensional. Both are actively managed. Over the past year, DFSE returned 42.80% vs 30.13% for DFAW. A 0.73 correlation means they provide meaningful diversification when combined. DFSE charges 0.41%/yr vs 0.25%/yr for DFAW.

Performance

DFSE vs. DFAW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Dimensional World Equity ETF (DFAW). 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 DFAW's 12.61% return.

DFSE

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

DFAW

• 1D: -0.70%
• 1M: 4.36%
• YTD: 12.61%
• 6M: 13.91%
• 1Y: 30.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFSE vs. DFAW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	21.02%	28.22%	6.90%	8.46%
DFAW Dimensional World Equity ETF	12.61%	20.62%	15.49%	11.57%

Correlation

The correlation between DFSE and DFAW is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (All Time) Calculated using the full available price history since Sep 28, 2023	0.73

The correlation between DFSE and DFAW has been stable across timeframes, ranging from 0.73 to 0.78 - a consistent structural relationship.

DFSE vs. DFAW - Sectors Allocation Comparison

Sectors	DFSE	DFAW
Technology	31.2%	24.8%
Financial Services	13.9%	15.5%
Industrials	12.5%	13.6%
Consumer Cyclical	10.6%	10.2%
Basic Materials	6.2%	5.0%
Communication Services	5.8%	7.3%
Healthcare	4.7%	7.9%
Consumer Defensive	3.9%	5.0%
Real Estate	2.2%	2.4%
Utilities	1.8%	2.3%
Energy	1.0%	6.0%

Return for Risk

DFSE vs. DFAW — 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

DFAW

DFAW Risk / Return Rank: 74
DFAW Sharpe Ratio Rank: 76
DFAW Sortino Ratio Rank: 76
DFAW Omega Ratio Rank: 75
DFAW Calmar Ratio Rank: 67
DFAW Martin Ratio Rank: 77

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. DFAW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Dimensional World Equity ETF (DFAW). 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	DFAW	Difference
Sharpe ratio: Return per unit of total volatility	2.30	2.52	-0.22
Sortino ratio: Return per unit of downside risk	3.06	3.49	-0.43
Omega ratio: Gain probability vs. loss probability	1.42	1.46	-0.04
Calmar ratio: Return relative to maximum drawdown	3.34	3.41	-0.07
Martin ratio: Return relative to average drawdown	12.45	15.09	-2.64
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. DFAW - Sharpe Ratio Comparison

The current DFSE Sharpe Ratio is 2.30, which is comparable to the DFAW Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of DFSE and DFAW, 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	DFAW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	2.52	-0.22
Sharpe Ratio (All Time) Calculated using the full available price history	1.34	1.62	-0.28

Drawdowns

DFSE vs. DFAW - Drawdown Comparison

The maximum DFSE drawdown since its inception was -19.77%, which is greater than DFAW's maximum drawdown of -16.93%. Use the drawdown chart below to compare losses from any high point for DFSE and DFAW.

Drawdown Indicators

	DFSE	DFAW	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-16.93%	-2.84%
Max Drawdown (1Y) Largest decline over 1 year	-12.88%	-8.88%	-4.00%
Max Drawdown (3Y) Largest decline over 3 years	-19.77%	—	—
Current Drawdown Current decline from peak	-1.66%	-0.70%	-0.96%
Average Drawdown Average peak-to-trough decline	-3.99%	-1.70%	-2.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	2.00%	+1.45%

Volatility

DFSE vs. DFAW - Volatility Comparison

Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) has a higher volatility of 7.93% compared to Dimensional World Equity ETF (DFAW) at 3.35%. This indicates that DFSE's price experiences larger fluctuations and is considered to be riskier than DFAW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSE	DFAW	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.93%	3.35%	+4.58%
Volatility (6M) Calculated over the trailing 6-month period	16.13%	9.39%	+6.74%
Volatility (1Y) Calculated over the trailing 1-year period	18.72%	12.03%	+6.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.63%	14.46%	+3.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.63%	14.46%	+3.17%

DFSE vs. DFAW - Expense Ratio Comparison

DFSE has a 0.41% expense ratio, which is higher than DFAW's 0.25% expense ratio.

Dividends

DFSE vs. DFAW - Dividend Comparison

DFSE's dividend yield for the trailing twelve months is around 1.84%, more than DFAW's 1.55% yield.

Position	TTM	2025	2024	2023	2022
DFAW Dimensional World Equity ETF	1.55%	1.71%	1.47%	0.42%	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 DFAW in my portfolio?

DFSE and DFAW have a correlation of 0.78, 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 DFAW?

DFSE has higher volatility (7.93%) compared to DFAW (3.35%). In terms of maximum drawdown, DFSE dropped -19.77% vs DFAW's -16.93%.

Which ETF is better, DFSE or DFAW?

On 1-year performance, DFSE leads with 42.80% vs 30.13% for DFAW. On fees, DFAW is cheaper at 0.25% per year. On volatility, DFAW has been the lower-risk option at 3.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSE or DFAW?

Over the 1-year period, DFSE has performed better with a 42.80% return vs 30.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSE or DFAW?

DFAW is cheaper with a 0.25% expense ratio, compared with 0.41% for DFSE.

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

DFSE has the higher dividend yield at 1.84%, compared with 1.55% for DFAW.

What is the main difference between DFSE and DFAW?

DFSE is categorized as Emerging Markets Diversified, while DFAW is Global Equities. Their fees differ too: 0.41% for DFSE and 0.25% for DFAW.

Which has better risk-adjusted returns?

DFAW currently has the higher Sharpe Ratio (2.52 vs 2.30), 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.