DFSE vs. IEMG

Last updated Jun 4, 2026

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 21.00%/yr vs 23.55%/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

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and iShares Core MSCI Emerging Markets ETF (IEMG). 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 lower than IEMG's 26.21% return.

DFSE

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

IEMG

• 1D: -1.34%
• 1M: 7.97%
• YTD: 26.21%
• 6M: 28.63%
• 1Y: 52.58%
• 3Y*: 23.55%
• 5Y*: 7.58%
• 10Y*: 10.41%

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

DFSE vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	21.02%	28.22%	6.90%	14.66%	11.62%
IEMG iShares Core MSCI Emerging Markets ETF	26.21%	32.56%	6.50%	11.52%	10.87%

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 3, 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.

DFSE vs. IEMG - Sectors Allocation Comparison

Sectors	DFSE	IEMG
Technology	31.2%	35.0%
Financial Services	13.9%	18.4%
Industrials	12.5%	9.0%
Consumer Cyclical	10.6%	9.5%
Basic Materials	6.2%	6.9%
Communication Services	5.8%	6.4%
Healthcare	4.7%	3.7%
Consumer Defensive	3.9%	3.3%
Real Estate	2.2%	1.7%
Utilities	1.8%	2.2%
Energy	1.0%	3.8%

Return for Risk

DFSE vs. IEMG — 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

IEMG

IEMG Risk / Return Rank: 79
IEMG Sharpe Ratio Rank: 82
IEMG Sortino Ratio Rank: 77
IEMG Omega Ratio Rank: 81
IEMG Calmar Ratio Rank: 77
IEMG Martin Ratio Rank: 78

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. 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.

	DFSE	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	2.30	2.72	-0.42
Sortino ratio: Return per unit of downside risk	3.06	3.53	-0.47
Omega ratio: Gain probability vs. loss probability	1.42	1.50	-0.08
Calmar ratio: Return relative to maximum drawdown	3.34	4.00	-0.66
Martin ratio: Return relative to average drawdown	12.45	15.38	-2.93
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. IEMG - Sharpe Ratio Comparison

The current DFSE Sharpe Ratio is 2.30, which is comparable to the IEMG Sharpe Ratio of 2.72. The chart below compares the historical Sharpe Ratios of DFSE and IEMG, 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	IEMG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	2.72	-0.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.41	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.34	0.35	+0.98

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.

Drawdown Indicators

	DFSE	IEMG	Difference
Max Drawdown Largest 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	—	-35.83%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-1.66%	-1.34%	-0.32%
Average Drawdown Average peak-to-trough decline	-3.99%	-12.97%	+8.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	3.43%	+0.02%

Volatility

DFSE vs. IEMG - Volatility Comparison

Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and iShares Core MSCI Emerging Markets ETF (IEMG) have volatilities of 7.93% and 8.31%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSE	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.93%	8.31%	-0.38%
Volatility (6M) Calculated over the trailing 6-month period	16.13%	16.93%	-0.80%
Volatility (1Y) Calculated over the trailing 1-year period	18.72%	19.43%	-0.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.63%	18.38%	-0.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.63%	20.03%	-2.40%

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 1.84%, less than IEMG's 2.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	1.84%	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	2.18%	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

Can I hold both DFSE and IEMG in my portfolio?

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.

Which is riskier, DFSE or IEMG?

IEMG has higher volatility (8.31%) compared to DFSE (7.93%). In terms of maximum drawdown, DFSE dropped -19.77% vs IEMG's -38.71%.

Which ETF is better, DFSE or IEMG?

On 3-year performance, IEMG leads with 23.55% vs 21.00% for DFSE. On fees, IEMG is cheaper at 0.09% per year. On volatility, DFSE has been the lower-risk option at 7.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSE or IEMG?

Over the 3-year period, IEMG has performed better with a 23.55% return vs 21.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSE or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.41% for DFSE.

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

IEMG has the higher dividend yield at 2.18%, compared with 1.84% for DFSE.

What is the main difference between DFSE and IEMG?

They also come from different issuers: Dimensional and iShares. Their fees differ too: 0.41% for DFSE and 0.09% for IEMG.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (2.72 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.