DFSI vs. VEU

Last updated Jun 24, 2026

DFSI (Dimensional International Sustainability Core 1 ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds. DFSI is actively managed, while VEU is passively managed. Over the past 3 years, DFSI returned 16.74%/yr vs 19.26%/yr for VEU. Their correlation of 0.94 suggests significant overlap in exposure. DFSI charges 0.24%/yr vs 0.04%/yr for VEU.

Performance

DFSI vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional International Sustainability Core 1 ETF (DFSI) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFSI achieves a 4.33% return, which is significantly lower than VEU's 13.01% return.

DFSI

• 1D: -2.97%
• 1M: -1.56%
• YTD: 4.33%
• 6M: 3.89%
• 1Y: 17.86%
• 3Y*: 16.74%
• 5Y*: —
• 10Y*: —

VEU

• 1D: -3.06%
• 1M: 0.69%
• YTD: 13.01%
• 6M: 12.81%
• 1Y: 30.08%
• 3Y*: 19.26%
• 5Y*: 8.60%
• 10Y*: 10.40%

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

DFSI vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFSI Dimensional International Sustainability Core 1 ETF	4.33%	33.62%	4.98%	17.86%	10.47%
VEU Vanguard FTSE All-World ex-US ETF	13.01%	32.35%	5.56%	15.84%	9.47%

Correlation

The correlation between DFSI and VEU is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (All Time) Calculated using the full available price history since Nov 2, 2022	0.94

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

DFSI vs. VEU - Sectors Allocation Comparison

Sectors	DFSI	VEU
Financial Services	24.2%	22.6%
Industrials	21.7%	15.0%
Technology	10.5%	21.6%
Consumer Cyclical	9.8%	8.0%
Healthcare	9.0%	6.7%
Basic Materials	7.4%	7.1%
Consumer Defensive	5.2%	4.9%
Communication Services	5.2%	4.5%
Utilities	3.1%	3.0%
Energy	1.9%	4.7%
Real Estate	1.9%	1.9%

Return for Risk

DFSI vs. VEU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DFSI

DFSI Risk / Return Rank: 34
DFSI Sharpe Ratio Rank: 34
DFSI Sortino Ratio Rank: 33
DFSI Omega Ratio Rank: 34
DFSI Calmar Ratio Rank: 31
DFSI Martin Ratio Rank: 37

VEU

VEU Risk / Return Rank: 56
VEU Sharpe Ratio Rank: 56
VEU Sortino Ratio Rank: 54
VEU Omega Ratio Rank: 57
VEU Calmar Ratio Rank: 55
VEU Martin Ratio Rank: 59

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.

DFSI vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional International Sustainability Core 1 ETF (DFSI) and Vanguard FTSE All-World ex-US ETF (VEU). 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.

	DFSI	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.15	1.84	-0.69
Sortino ratio: Return per unit of downside risk	1.70	2.52	-0.82
Omega ratio: Gain probability vs. loss probability	1.22	1.34	-0.12
Calmar ratio: Return relative to maximum drawdown	1.46	2.64	-1.18
Martin ratio: Return relative to average drawdown	5.45	10.12	-4.67

DFSI vs. VEU - Sharpe Ratio Comparison

The current DFSI Sharpe Ratio is 1.15, which is lower than the VEU Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of DFSI and VEU, 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

DFSI vs. VEU - Drawdown Comparison

The maximum DFSI drawdown since its inception was -12.82%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for DFSI and VEU.

Drawdown Indicators

	DFSI	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-12.82%	-61.52%	+48.70%
Max Drawdown (1Y) Largest decline over 1 year	-12.26%	-11.43%	-0.83%
Max Drawdown (3Y) Largest decline over 3 years	-12.82%	-13.69%	+0.87%
Max Drawdown (5Y) Largest decline over 5 years	—	-29.14%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.98%	—
Current Drawdown Current decline from peak	-4.26%	-3.06%	-1.20%
Average Drawdown Average peak-to-trough decline	-2.62%	-13.10%	+10.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.28%	2.98%	+0.30%

Volatility

DFSI vs. VEU - Volatility Comparison

The current volatility for Dimensional International Sustainability Core 1 ETF (DFSI) is 5.34%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 7.10%. This indicates that DFSI experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSI	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.34%	7.10%	-1.76%
Volatility (6M) Calculated over the trailing 6-month period	13.46%	14.47%	-1.01%
Volatility (1Y) Calculated over the trailing 1-year period	15.57%	16.44%	-0.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.37%	16.30%	-0.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.37%	17.08%	-1.71%

DFSI vs. VEU - Expense Ratio Comparison

DFSI has a 0.24% expense ratio, which is higher than VEU's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DFSI vs. VEU - Dividend Comparison

DFSI's dividend yield for the trailing twelve months is around 2.17%, less than VEU's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSI Dimensional International Sustainability Core 1 ETF	2.17%	2.23%	2.39%	2.10%	0.18%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VEU Vanguard FTSE All-World ex-US ETF	2.56%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both DFSI and VEU in my portfolio?

With a correlation of 0.93, DFSI and VEU 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, DFSI or VEU?

VEU has higher volatility (7.10%) compared to DFSI (5.34%). In terms of maximum drawdown, DFSI dropped -12.82% vs VEU's -61.52%.

Which ETF is better, DFSI or VEU?

On 3-year performance, VEU leads with 19.26% vs 16.74% for DFSI. On fees, VEU is cheaper at 0.04% per year. On volatility, DFSI has been the lower-risk option at 5.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSI or VEU?

Over the 3-year period, VEU has performed better with a 19.26% return vs 16.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSI or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.24% for DFSI.

Which ETF pays a higher dividend yield, DFSI or VEU?

VEU has the higher dividend yield at 2.56%, compared with 2.17% for DFSI.

What is the main difference between DFSI and VEU?

They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.24% for DFSI and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.84 vs 1.15), 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.