DFSTX vs. EEM
DFSTX (DFA U.S. Small Cap Portfolio) and EEM (iShares MSCI Emerging Markets ETF) are both funds - DFSTX is a Small Cap Blend Equities fund managed by Dimensional, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Over the past 10 years, DFSTX returned 11.16%/yr vs 9.91%/yr for EEM. A 0.68 correlation means they provide meaningful diversification when combined. DFSTX charges 0.27%/yr vs 0.72%/yr for EEM.
Performance
DFSTX vs. EEM - Performance Comparison
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Returns By Period
In the year-to-date period, DFSTX achieves a 15.82% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, DFSTX has outperformed EEM with an annualized return of 11.16%, while EEM has yielded a comparatively lower 9.91% annualized return.
DFSTX
- 1D
- 2.42%
- 1M
- 5.56%
- YTD
- 15.82%
- 6M
- 13.14%
- 1Y
- 31.26%
- 3Y*
- 15.72%
- 5Y*
- 8.14%
- 10Y*
- 11.16%
EEM
- 1D
- 0.56%
- 1M
- 0.74%
- YTD
- 24.07%
- 6M
- 26.94%
- 1Y
- 47.57%
- 3Y*
- 21.60%
- 5Y*
- 6.56%
- 10Y*
- 9.91%
DFSTX vs. EEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
DFSTX DFA U.S. Small Cap Portfolio | 15.82% | 8.07% | 11.50% | 17.66% | -13.50% | 30.50% | 11.19% | 21.78% | -13.20% | 11.19% |
EEM iShares MSCI Emerging Markets ETF | 24.07% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
Correlation
The correlation between DFSTX and EEM is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.60 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Apr 14, 2003 | 0.68 |
The correlation between DFSTX and EEM shifts across timeframes, from 0.58 (3 years) to 0.68 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
DFSTX vs. EEM — Risk / Return Rank
DFSTX
EEM
DFSTX vs. EEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for DFA U.S. Small Cap Portfolio (DFSTX) and iShares MSCI Emerging Markets ETF (EEM). 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.
| DFSTX | EEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.40 | ||
| Sortino ratioReturn per unit of downside risk | -0.23 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.40 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 3.15 | 3.36 | -0.21 |
| Martin ratioReturn relative to average drawdown | 10.70 | 12.38 | -1.69 |
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Drawdowns
DFSTX vs. EEM - Drawdown Comparison
The maximum DFSTX drawdown since its inception was -60.99%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for DFSTX and EEM.
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Drawdown Indicators
| DFSTX | EEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -60.99% | -66.43% | +5.44% |
Max Drawdown (1Y)Largest decline over 1 year | -9.16% | -13.52% | +4.36% |
Max Drawdown (3Y)Largest decline over 3 years | -25.91% | -17.29% | -8.62% |
Max Drawdown (5Y)Largest decline over 5 years | -25.91% | -37.49% | +11.58% |
Max Drawdown (10Y)Largest decline over 10 years | -44.78% | -39.82% | -4.96% |
Current DrawdownCurrent decline from peak | 0.00% | -4.12% | +4.12% |
Average DrawdownAverage peak-to-trough decline | -8.76% | -16.00% | +7.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.70% | 3.67% | -0.97% |
Volatility
DFSTX vs. EEM - Volatility Comparison
The current volatility for DFA U.S. Small Cap Portfolio (DFSTX) is 5.10%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that DFSTX experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DFSTX | EEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.10% | 10.80% | -5.70% |
Volatility (6M)Calculated over the trailing 6-month period | 12.02% | 19.39% | -7.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.03% | 21.64% | -4.61% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.61% | 19.26% | +1.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.09% | 20.64% | +1.45% |
DFSTX vs. EEM - Expense Ratio Comparison
DFSTX has a 0.27% expense ratio, which is lower than EEM's 0.72% expense ratio.
Dividends
DFSTX vs. EEM - Dividend Comparison
DFSTX's dividend yield for the trailing twelve months is around 0.94%, less than EEM's 1.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFSTX DFA U.S. Small Cap Portfolio | 0.94% | 1.08% | 1.05% | 2.45% | 5.18% | 6.39% | 1.08% | 3.30% | 5.16% | 4.56% | 3.10% | 5.90% |
EEM iShares MSCI Emerging Markets ETF | 1.79% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
Frequently Asked Questions
DFSTX and EEM have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (10.80%) compared to DFSTX (5.10%). In terms of maximum drawdown, DFSTX dropped -60.99% vs EEM's -66.43%.
EEM currently has the higher Sharpe Ratio (2.10 vs 1.70), 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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