DFSE vs. VWO

Last updated Aug 2, 2026

DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds. DFSE is actively managed, while VWO is passively managed. Over the past 3 years, DFSE returned 15.49%/yr vs 14.84%/yr for VWO. Their correlation of 0.94 means they have usually moved in the same direction. DFSE charges 0.41%/yr vs 0.08%/yr for VWO.

Performance

DFSE vs. VWO - Performance Comparison

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

Returns By Period

In the year-to-date period, DFSE achieves a 11.87% return, which is significantly higher than VWO's 9.41% return.

DFSE

• 1D: 0.32%
• 1M: -2.79%
• 6M: 4.60%
• YTD: 11.87%
• 1Y: 24.07%
• 3Y*: 15.49%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 19.47%

VWO

• 1D: 0.96%
• 1M: -0.49%
• 6M: 4.16%
• YTD: 9.41%
• 1Y: 21.69%
• 3Y*: 14.84%
• 5Y*: 6.08%
• 10Y*: 7.86%
• ALL TIME*: 6.81%

*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)
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	$1.30M	$1.32M	$1.25M
VWO Vanguard FTSE Emerging Markets ETF	$386.61M	$469.40M	$499.89M

DFSE vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	11.87%	28.22%	6.90%	14.66%	10.68%
VWO Vanguard FTSE Emerging Markets ETF	9.41%	25.60%	10.59%	9.25%	9.92%

Correlation

The correlation between DFSE and VWO is 0.93, 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.	0.93
Correlation (3Y) Balances recent behavior with more history.	0.94
Correlation (All Time) Calculated using the full available price history since Nov 2, 2022	0.94

The correlation between DFSE and VWO has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.

DFSE vs. VWO - Sectors Allocation Comparison

Sectors	DFSE	VWO
Technology	39.3%	34.2%
Financial Services	17.0%	19.4%
Industrials	11.5%	7.9%
Consumer Cyclical	9.1%	9.1%
Communication Services	5.9%	6.6%
Basic Materials	4.8%	7.2%
Healthcare	4.3%	3.7%
Consumer Defensive	3.2%	3.3%
Real Estate	2.2%	2.0%
Utilities	1.7%	2.8%
Energy	1.1%	3.8%

Return for Risk

DFSE vs. VWO — Risk / Return Rank

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

DFSE

DFSE Risk / Return Rank: 45
DFSE Sharpe Ratio Rank: 43
DFSE Sortino Ratio Rank: 41
DFSE Omega Ratio Rank: 45
DFSE Calmar Ratio Rank: 51
DFSE Martin Ratio Rank: 48

VWO

VWO Risk / Return Rank: 51
VWO Sharpe Ratio Rank: 49
VWO Sortino Ratio Rank: 48
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 54
VWO Martin Ratio Rank: 53

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. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Vanguard FTSE Emerging Markets ETF (VWO). 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	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.06	1.20	-0.14
Sortino ratio: Return per unit of downside risk	1.53	1.72	-0.19
Omega ratio: Gain probability vs. loss probability	1.21	1.22	-0.01
Calmar ratio: Return relative to maximum drawdown	1.83	1.89	-0.06
Martin ratio: Return relative to average drawdown	5.45	6.16	-0.71

DFSE vs. VWO - Sharpe Ratio Comparison

The current DFSE Sharpe Ratio is 1.06, which is comparable to the VWO Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of DFSE and VWO, 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. VWO - Drawdown Comparison

The maximum DFSE drawdown since its inception was -19.77%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for DFSE and VWO.

Drawdown Indicators

	DFSE	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-67.68%	+47.91%
Max Drawdown (1Y) Largest decline over 1 year	-12.88%	-11.17%	-1.71%
Max Drawdown (3Y) Largest decline over 3 years	-19.77%	-17.37%	-2.40%
Max Drawdown (5Y) Largest decline over 5 years	—	-30.88%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-9.10%	-4.07%	-5.03%
Average Drawdown Average peak-to-trough decline	-4.08%	-15.73%	+11.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.32%	3.43%	+0.89%

Volatility

DFSE vs. VWO - Volatility Comparison

Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) has a higher volatility of 8.15% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.58%. This indicates that DFSE's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSE	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.15%	5.58%	+2.57%
Volatility (6M) Calculated over the trailing 6-month period	20.16%	15.22%	+4.94%
Volatility (1Y) Calculated over the trailing 1-year period	22.15%	17.58%	+4.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.47%	17.56%	+0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.47%	19.17%	-0.70%

DFSE vs. VWO - Expense Ratio Comparison

DFSE has a 0.41% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

DFSE vs. VWO - Dividend Comparison

DFSE's dividend yield for the trailing twelve months is around 1.98%, less than VWO's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	1.98%	2.26%	2.06%	2.06%	0.36%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.35%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both DFSE and VWO in my portfolio?

With a correlation of 0.93, DFSE and VWO 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 VWO?

DFSE has higher volatility (8.15%) compared to VWO (5.58%). In terms of maximum drawdown, DFSE dropped -19.77% vs VWO's -67.68%.

Which ETF is better, DFSE or VWO?

On 3-year performance, DFSE leads with 15.49% vs 14.84% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSE or VWO?

Over the 3-year period, DFSE has performed better with a 15.49% return vs 14.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSE or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.41% for DFSE.

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

VWO has the higher dividend yield at 2.35%, compared with 1.98% for DFSE.

What is the main difference between DFSE and VWO?

They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.41% for DFSE and 0.08% for VWO.

Which has better risk-adjusted returns?

VWO currently has the higher Sharpe Ratio (1.20 vs 1.06), 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.