FRDM vs. DFAE

Last updated Jun 23, 2026

FRDM (Freedom 100 Emerging Markets ETF) and DFAE (Dimensional Emerging Core Equity Market ETF) are both exchange-traded funds - FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index, while DFAE is a Emerging Markets Equities fund actively managed by Dimensional. FRDM is passively managed, while DFAE is actively managed. Over the past 5 years, FRDM returned 20.53%/yr vs 9.93%/yr for DFAE. Their correlation of 0.85 suggests significant overlap in exposure. FRDM charges 0.49%/yr vs 0.35%/yr for DFAE.

Performance

FRDM vs. DFAE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Freedom 100 Emerging Markets ETF (FRDM) and Dimensional Emerging Core Equity Market ETF (DFAE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FRDM achieves a 49.24% return, which is significantly higher than DFAE's 29.00% return.

FRDM

• 1D: 0.13%
• 1M: 12.84%
• YTD: 49.24%
• 6M: 53.92%
• 1Y: 101.71%
• 3Y*: 38.21%
• 5Y*: 20.53%
• 10Y*: —

DFAE

• 1D: 0.53%
• 1M: 7.40%
• YTD: 29.00%
• 6M: 30.44%
• 1Y: 53.34%
• 3Y*: 24.55%
• 5Y*: 9.93%
• 10Y*: —

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

FRDM vs. DFAE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FRDM Freedom 100 Emerging Markets ETF	49.24%	61.27%	1.70%	22.77%	-14.45%	6.13%	6.89%
DFAE Dimensional Emerging Core Equity Market ETF	29.00%	31.48%	7.68%	12.63%	-17.52%	3.53%	5.93%

Correlation

The correlation between FRDM and DFAE is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020	0.85

The correlation between FRDM and DFAE has been stable across timeframes, ranging from 0.85 to 0.92 - a consistent structural relationship.

FRDM vs. DFAE - Sectors Allocation Comparison

Sectors	FRDM	DFAE
Technology	48.9%	41.6%
Financial Services	19.4%	15.8%
Industrials	7.6%	9.1%
Consumer Cyclical	7.1%	8.1%
Basic Materials	6.4%	7.0%
Communication Services	3.2%	5.4%
Utilities	2.1%	2.1%
Real Estate	2.0%	1.4%
Consumer Defensive	1.9%	2.9%
Healthcare	1.5%	3.1%
Energy	0.0%	3.5%

Return for Risk

FRDM vs. DFAE — Risk / Return Rank

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

FRDM

FRDM Risk / Return Rank: 93
FRDM Sharpe Ratio Rank: 96
FRDM Sortino Ratio Rank: 92
FRDM Omega Ratio Rank: 93
FRDM Calmar Ratio Rank: 93
FRDM Martin Ratio Rank: 93

DFAE

DFAE Risk / Return Rank: 81
DFAE Sharpe Ratio Rank: 83
DFAE Sortino Ratio Rank: 76
DFAE Omega Ratio Rank: 84
DFAE Calmar Ratio Rank: 82
DFAE Martin Ratio Rank: 81

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.

FRDM vs. DFAE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Freedom 100 Emerging Markets ETF (FRDM) and Dimensional Emerging Core Equity Market ETF (DFAE). 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.

	FRDM	DFAE	Difference
Sharpe ratio: Return per unit of total volatility	3.76	2.56	+1.20
Sortino ratio: Return per unit of downside risk	4.22	3.25	+0.97
Omega ratio: Gain probability vs. loss probability	1.63	1.48	+0.15
Calmar ratio: Return relative to maximum drawdown	6.06	4.19	+1.88
Martin ratio: Return relative to average drawdown	23.38	15.52	+7.86

FRDM vs. DFAE - Sharpe Ratio Comparison

The current FRDM Sharpe Ratio is 3.76, which is higher than the DFAE Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of FRDM and DFAE, 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

FRDM vs. DFAE - Drawdown Comparison

The maximum FRDM drawdown since its inception was -40.49%, which is greater than DFAE's maximum drawdown of -32.21%. Use the drawdown chart below to compare losses from any high point for FRDM and DFAE.

Drawdown Indicators

	FRDM	DFAE	Difference
Max Drawdown Largest peak-to-trough decline	-40.49%	-32.21%	-8.28%
Max Drawdown (1Y) Largest decline over 1 year	-16.87%	-12.80%	-4.07%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	-18.12%	+1.25%
Max Drawdown (5Y) Largest decline over 5 years	-29.25%	-31.73%	+2.48%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-7.07%	-10.26%	+3.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	3.45%	+0.92%

Volatility

FRDM vs. DFAE - Volatility Comparison

Freedom 100 Emerging Markets ETF (FRDM) has a higher volatility of 14.15% compared to Dimensional Emerging Core Equity Market ETF (DFAE) at 10.49%. This indicates that FRDM's price experiences larger fluctuations and is considered to be riskier than DFAE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRDM	DFAE	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.15%	10.49%	+3.66%
Volatility (6M) Calculated over the trailing 6-month period	24.80%	18.89%	+5.91%
Volatility (1Y) Calculated over the trailing 1-year period	27.26%	20.97%	+6.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.48%	18.27%	+3.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.15%	18.20%	+4.95%

FRDM vs. DFAE - Expense Ratio Comparison

FRDM has a 0.49% expense ratio, which is higher than DFAE's 0.35% expense ratio.

Dividends

FRDM vs. DFAE - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.47%, less than DFAE's 1.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
DFAE Dimensional Emerging Core Equity Market ETF	1.70%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%
FRDM Freedom 100 Emerging Markets ETF	1.47%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%

Frequently Asked Questions

Can I hold both FRDM and DFAE in my portfolio?

With a correlation of 0.92, FRDM and DFAE 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, FRDM or DFAE?

FRDM has higher volatility (14.15%) compared to DFAE (10.49%). In terms of maximum drawdown, FRDM dropped -40.49% vs DFAE's -32.21%.

Which ETF is better, FRDM or DFAE?

On 5-year performance, FRDM leads with 20.53% vs 9.93% for DFAE. On fees, DFAE is cheaper at 0.35% per year. On volatility, DFAE has been the lower-risk option at 10.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRDM or DFAE?

Over the 5-year period, FRDM has performed better with a 20.53% return vs 9.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRDM or DFAE?

DFAE is cheaper with a 0.35% expense ratio, compared with 0.49% for FRDM.

Which ETF pays a higher dividend yield, FRDM or DFAE?

DFAE has the higher dividend yield at 1.70%, compared with 1.47% for FRDM.

What is the main difference between FRDM and DFAE?

FRDM is categorized as Emerging Markets Diversified, while DFAE is Emerging Markets Equities. They also come from different issuers: Freedom Funds and Dimensional. Their fees differ too: 0.49% for FRDM and 0.35% for DFAE.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (3.76 vs 2.56), 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.