DFSE vs. HEEM
DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds. DFSE is actively managed, while HEEM is passively managed. Over the past 3 years, DFSE returned 19.53%/yr vs 25.80%/yr for HEEM. Their correlation of 0.91 suggests significant overlap in exposure. DFSE charges 0.41%/yr vs 0.72%/yr for HEEM.
Performance
DFSE vs. HEEM - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, DFSE achieves a 16.52% return, which is significantly lower than HEEM's 26.06% return.
DFSE
- 1D
- -5.29%
- 1M
- -0.02%
- YTD
- 16.52%
- 6M
- 16.76%
- 1Y
- 32.75%
- 3Y*
- 19.53%
- 5Y*
- —
- 10Y*
- —
HEEM
- 1D
- -5.40%
- 1M
- 3.12%
- YTD
- 26.06%
- 6M
- 26.50%
- 1Y
- 55.61%
- 3Y*
- 25.80%
- 5Y*
- 9.77%
- 10Y*
- 11.34%
DFSE vs. HEEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF | 16.52% | 28.22% | 6.90% | 14.66% | 10.68% |
HEEM iShares Currency Hedged MSCI Emerging Markets ETF | 26.06% | 34.02% | 12.59% | 10.14% | 6.46% |
Correlation
The correlation between DFSE and HEEM 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 (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Nov 2, 2022 | 0.91 |
The correlation between DFSE and HEEM has been stable across timeframes, ranging from 0.91 to 0.91 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
DFSE vs. HEEM — Risk / Return Rank
DFSE
HEEM
DFSE vs. HEEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). 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 | HEEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.14 | ||
| Sortino ratioReturn per unit of downside risk | -1.29 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.52 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.56 | 5.16 | -2.61 |
| Martin ratioReturn relative to average drawdown | 9.16 | 19.26 | -10.10 |
Loading charts...
Drawdowns
DFSE vs. HEEM - Drawdown Comparison
The maximum DFSE drawdown since its inception was -19.77%, smaller than the maximum HEEM drawdown of -33.53%. Use the drawdown chart below to compare losses from any high point for DFSE and HEEM.
Loading charts...
Drawdown Indicators
| DFSE | HEEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.77% | -33.53% | +13.76% |
Max Drawdown (1Y)Largest decline over 1 year | -12.88% | -10.83% | -2.05% |
Max Drawdown (3Y)Largest decline over 3 years | -19.77% | -14.82% | -4.95% |
Max Drawdown (5Y)Largest decline over 5 years | — | -30.60% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.53% | — |
Current DrawdownCurrent decline from peak | -5.31% | -5.40% | +0.09% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -11.10% | +7.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.58% | 2.90% | +0.68% |
Volatility
DFSE vs. HEEM - Volatility Comparison
The current volatility for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is 11.07%, while iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a volatility of 11.87%. This indicates that DFSE experiences smaller price fluctuations and is considered to be less risky than HEEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| DFSE | HEEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.07% | 11.87% | -0.80% |
Volatility (6M)Calculated over the trailing 6-month period | 18.87% | 18.67% | +0.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.92% | 20.56% | +0.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.24% | 17.64% | +0.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.24% | 18.20% | +0.04% |
DFSE vs. HEEM - Expense Ratio Comparison
DFSE has a 0.41% expense ratio, which is lower than HEEM's 0.72% expense ratio.
Dividends
DFSE vs. HEEM - Dividend Comparison
DFSE's dividend yield for the trailing twelve months is around 1.91%, less than HEEM's 3.16% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF | 1.91% | 2.26% | 2.06% | 2.06% | 0.36% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
HEEM iShares Currency Hedged MSCI Emerging Markets ETF | 3.16% | 3.98% | 2.38% | 2.75% | 7.49% | 1.93% | 1.49% | 3.04% | 2.37% | 2.05% | 1.84% | 6.28% |
Frequently Asked Questions
With a correlation of 0.91, DFSE and HEEM 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.
HEEM has higher volatility (11.87%) compared to DFSE (11.07%). In terms of maximum drawdown, DFSE dropped -19.77% vs HEEM's -33.53%.
On 3-year performance, HEEM leads with 25.80% vs 19.53% for DFSE. On fees, DFSE is cheaper at 0.41% per year. On volatility, DFSE has been the lower-risk option at 11.07%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, HEEM has performed better with a 25.80% return vs 19.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DFSE is cheaper with a 0.41% expense ratio, compared with 0.72% for HEEM.
HEEM has the higher dividend yield at 3.16%, compared with 1.91% for DFSE.
They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.41% for DFSE and 0.72% for HEEM.
HEEM currently has the higher Sharpe Ratio (2.72 vs 1.58), 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.
Find the right allocation for DFSE and HEEM
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer