DFSE vs. IEMG
DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds. DFSE is actively managed, while IEMG is passively managed. Over the past 3 years, DFSE returned 16.55%/yr vs 18.90%/yr for IEMG. With a 0.96 correlation, they move nearly in lockstep. DFSE charges 0.41%/yr vs 0.09%/yr for IEMG.
Performance
DFSE vs. IEMG - Performance Comparison
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Returns By Period
In the year-to-date period, DFSE achieves a 13.49% return, which is significantly lower than IEMG's 17.70% return.
DFSE
- 1D
- -3.34%
- 1M
- -4.77%
- 6M
- 8.47%
- YTD
- 13.49%
- 1Y
- 25.67%
- 3Y*
- 16.55%
- 5Y*
- —
- 10Y*
- —
IEMG
- 1D
- -3.48%
- 1M
- -4.18%
- 6M
- 11.50%
- YTD
- 17.70%
- 1Y
- 34.02%
- 3Y*
- 18.90%
- 5Y*
- 6.68%
- 10Y*
- 9.04%
DFSE vs. IEMG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF | 13.49% | 28.22% | 6.90% | 14.66% | 10.68% |
IEMG iShares Core MSCI Emerging Markets ETF | 17.70% | 32.56% | 6.50% | 11.52% | 9.92% |
Correlation
The correlation between DFSE and IEMG is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Nov 2, 2022 | 0.96 |
The correlation between DFSE and IEMG has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.
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Return for Risk
DFSE vs. IEMG — Risk / Return Rank
DFSE
IEMG
DFSE vs. IEMG - 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 Core MSCI Emerging Markets ETF (IEMG). 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 | IEMG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.29 | ||
| Sortino ratioReturn per unit of downside risk | -0.32 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.29 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.00 | 2.59 | -0.58 |
| Martin ratioReturn relative to average drawdown | 6.80 | 8.86 | -2.07 |
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Drawdowns
DFSE vs. IEMG - Drawdown Comparison
The maximum DFSE drawdown since its inception was -19.77%, smaller than the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for DFSE and IEMG.
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Drawdown Indicators
| DFSE | IEMG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.77% | -38.71% | +18.94% |
Max Drawdown (1Y)Largest decline over 1 year | -12.88% | -13.21% | +0.33% |
Max Drawdown (3Y)Largest decline over 3 years | -19.77% | -17.21% | -2.56% |
Max Drawdown (5Y)Largest decline over 5 years | — | -34.19% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -38.71% | — |
Current DrawdownCurrent decline from peak | -7.78% | -8.73% | +0.95% |
Average DrawdownAverage peak-to-trough decline | -4.01% | -12.91% | +8.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.79% | 3.85% | -0.06% |
Volatility
DFSE vs. IEMG - Volatility Comparison
The current volatility for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is 9.95%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 10.84%. This indicates that DFSE experiences smaller price fluctuations and is considered to be less risky than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DFSE | IEMG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.95% | 10.84% | -0.89% |
Volatility (6M)Calculated over the trailing 6-month period | 19.53% | 20.94% | -1.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.47% | 22.88% | -1.41% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.36% | 19.15% | -0.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.36% | 20.22% | -1.86% |
DFSE vs. IEMG - Expense Ratio Comparison
DFSE has a 0.41% expense ratio, which is higher than IEMG's 0.09% expense ratio.
Dividends
DFSE vs. IEMG - Dividend Comparison
DFSE's dividend yield for the trailing twelve months is around 1.95%, less than IEMG's 2.29% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IEMG iShares Core MSCI Emerging Markets ETF | 2.29% | 2.75% | 3.20% | 2.89% | 2.71% | 3.06% | 1.87% | 3.15% | 2.76% | 2.35% | 2.28% | 2.53% |
Frequently Asked Questions
With a correlation of 0.97, DFSE and IEMG 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.
IEMG has higher volatility (10.84%) compared to DFSE (9.95%). In terms of maximum drawdown, DFSE dropped -19.77% vs IEMG's -38.71%.
On 3-year performance, IEMG leads with 18.90% vs 16.55% for DFSE. On fees, IEMG is cheaper at 0.09% per year. On volatility, DFSE has been the lower-risk option at 9.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, IEMG has performed better with a 18.90% return vs 16.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEMG is cheaper with a 0.09% expense ratio, compared with 0.41% for DFSE.
IEMG has the higher dividend yield at 2.29%, compared with 1.95% for DFSE.
They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.41% for DFSE and 0.09% for IEMG.
IEMG currently has the higher Sharpe Ratio (1.50 vs 1.20), 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.
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