DRIHX vs. DFSTX

Last updated Jun 3, 2026

DRIHX (Dimensional 2040 Target Date Retirement Income Fund) and DFSTX (DFA U.S. Small Cap Portfolio) are both mutual funds - DRIHX is a Target Retirement Date fund managed by Dimensional, while DFSTX is a Small Cap Blend Equities fund managed by Dimensional. Over the past 10 years, DRIHX returned 9.55%/yr vs 10.85%/yr for DFSTX. Their correlation of 0.83 suggests significant overlap in exposure. DRIHX charges 0.22%/yr vs 0.27%/yr for DFSTX.

Performance

DRIHX vs. DFSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional 2040 Target Date Retirement Income Fund (DRIHX) and DFA U.S. Small Cap Portfolio (DFSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DRIHX achieves a 8.06% return, which is significantly lower than DFSTX's 13.83% return. Over the past 10 years, DRIHX has underperformed DFSTX with an annualized return of 9.55%, while DFSTX has yielded a comparatively higher 10.85% annualized return.

DRIHX

• 1D: 0.16%
• 1M: 2.96%
• YTD: 8.06%
• 6M: 8.50%
• 1Y: 20.22%
• 3Y*: 14.06%
• 5Y*: 7.19%
• 10Y*: 9.55%

DFSTX

• 1D: 0.08%
• 1M: 1.80%
• YTD: 13.83%
• 6M: 14.64%
• 1Y: 30.03%
• 3Y*: 15.95%
• 5Y*: 7.88%
• 10Y*: 10.85%

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

DRIHX vs. DFSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DRIHX Dimensional 2040 Target Date Retirement Income Fund	8.06%	14.48%	11.11%	16.06%	-16.20%	16.54%	12.73%	22.12%	-7.66%	19.53%
DFSTX DFA U.S. Small Cap Portfolio	13.83%	8.07%	11.50%	17.66%	-13.50%	30.50%	11.19%	21.78%	-13.20%	11.19%

Correlation

The correlation between DRIHX and DFSTX is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016	0.83

The correlation between DRIHX and DFSTX has been stable across timeframes, ranging from 0.78 to 0.84 - a consistent structural relationship.

Return for Risk

DRIHX vs. DFSTX — Risk / Return Rank

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

DRIHX

DRIHX Risk / Return Rank: 66
DRIHX Sharpe Ratio Rank: 68
DRIHX Sortino Ratio Rank: 67
DRIHX Omega Ratio Rank: 65
DRIHX Calmar Ratio Rank: 61
DRIHX Martin Ratio Rank: 68

DFSTX

DFSTX Risk / Return Rank: 47
DFSTX Sharpe Ratio Rank: 38
DFSTX Sortino Ratio Rank: 40
DFSTX Omega Ratio Rank: 34
DFSTX Calmar Ratio Rank: 70
DFSTX Martin Ratio Rank: 54

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.

DRIHX vs. DFSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional 2040 Target Date Retirement Income Fund (DRIHX) and DFA U.S. Small Cap Portfolio (DFSTX). 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.

	DRIHX	DFSTX	Difference
Sharpe ratio Return per unit of total volatility	2.41	1.79	+0.62
Sortino ratio Return per unit of downside risk	3.41	2.63	+0.78
Omega ratio Gain probability vs. loss probability	1.45	1.31	+0.14
Calmar ratio Return relative to maximum drawdown	3.02	3.24	-0.21
Martin ratio Return relative to average drawdown	13.11	11.01	+2.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DRIHX vs. DFSTX - Sharpe Ratio Comparison

The current DRIHX Sharpe Ratio is 2.41, which is higher than the DFSTX Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of DRIHX and DFSTX, 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

	DRIHX	DFSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	1.79	+0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.39	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.49	+0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	0.50	+0.25

Drawdowns

DRIHX vs. DFSTX - Drawdown Comparison

The maximum DRIHX drawdown since its inception was -27.96%, smaller than the maximum DFSTX drawdown of -60.99%. Use the drawdown chart below to compare losses from any high point for DRIHX and DFSTX.

Drawdown Indicators

	DRIHX	DFSTX	Difference
Max Drawdown Largest peak-to-trough decline	-27.96%	-60.99%	+33.03%
Max Drawdown (1Y) Largest decline over 1 year	-6.96%	-9.16%	+2.20%
Max Drawdown (3Y) Largest decline over 3 years	-11.75%	-25.91%	+14.16%
Max Drawdown (5Y) Largest decline over 5 years	-22.51%	-25.91%	+3.40%
Max Drawdown (10Y) Largest decline over 10 years	-27.96%	-44.78%	+16.82%
Current Drawdown Current decline from peak	0.00%	-0.47%	+0.47%
Average Drawdown Average peak-to-trough decline	-4.08%	-8.77%	+4.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.61%	2.69%	-1.08%

Volatility

DRIHX vs. DFSTX - Volatility Comparison

The current volatility for Dimensional 2040 Target Date Retirement Income Fund (DRIHX) is 2.69%, while DFA U.S. Small Cap Portfolio (DFSTX) has a volatility of 4.40%. This indicates that DRIHX experiences smaller price fluctuations and is considered to be less risky than DFSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DRIHX	DFSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.69%	4.40%	-1.71%
Volatility (6M) Calculated over the trailing 6-month period	6.72%	11.55%	-4.83%
Volatility (1Y) Calculated over the trailing 1-year period	8.50%	16.78%	-8.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.60%	20.56%	-8.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.79%	22.08%	-9.29%

DRIHX vs. DFSTX - Expense Ratio Comparison

DRIHX has a 0.22% expense ratio, which is lower than DFSTX's 0.27% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DRIHX vs. DFSTX - Dividend Comparison

DRIHX's dividend yield for the trailing twelve months is around 4.66%, more than DFSTX's 0.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSTX DFA U.S. Small Cap Portfolio	0.95%	1.08%	1.05%	2.45%	5.18%	6.39%	1.08%	3.30%	5.16%	4.56%	3.10%	5.90%
DRIHX Dimensional 2040 Target Date Retirement Income Fund	4.66%	5.15%	3.42%	3.71%	4.43%	2.58%	3.05%	2.24%	2.34%	1.22%	1.40%	0.00%

Frequently Asked Questions

Can I hold both DRIHX and DFSTX in my portfolio?

DRIHX and DFSTX have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DRIHX or DFSTX?

DFSTX has higher volatility (4.40%) compared to DRIHX (2.69%). In terms of maximum drawdown, DRIHX dropped -27.96% vs DFSTX's -60.99%.

Which has better risk-adjusted returns?

DRIHX currently has the higher Sharpe Ratio (2.41 vs 1.79), 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.