IEMG vs. DFAE

Last updated Jun 9, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and DFAE (Dimensional Emerging Core Equity Market ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net), while DFAE is a Emerging Markets Equities fund actively managed by Dimensional. IEMG is passively managed, while DFAE is actively managed. Over the past 5 years, IEMG returned 6.57%/yr vs 8.03%/yr for DFAE. With a 0.99 correlation, they move nearly in lockstep. IEMG charges 0.09%/yr vs 0.35%/yr for DFAE.

Performance

IEMG vs. DFAE - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with IEMG having a 18.97% return and DFAE slightly higher at 19.47%.

IEMG

• 1D: 1.70%
• 1M: -3.66%
• YTD: 18.97%
• 6M: 20.80%
• 1Y: 40.80%
• 3Y*: 20.51%
• 5Y*: 6.57%
• 10Y*: 9.88%

DFAE

• 1D: 1.86%
• 1M: -3.41%
• YTD: 19.47%
• 6M: 21.35%
• 1Y: 41.41%
• 3Y*: 20.86%
• 5Y*: 8.03%
• 10Y*: —

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

IEMG vs. DFAE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
IEMG iShares Core MSCI Emerging Markets ETF	18.97%	32.56%	6.50%	11.52%	-19.98%	-0.64%	4.87%
DFAE Dimensional Emerging Core Equity Market ETF	19.47%	31.48%	7.68%	12.63%	-17.52%	3.53%	4.85%

Correlation

The correlation between IEMG and DFAE is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Dec 3, 2020	0.99

The correlation between IEMG and DFAE has been stable across timeframes, ranging from 0.99 to 0.99 - a consistent structural relationship.

IEMG vs. DFAE - Sectors Allocation Comparison

Sectors	IEMG	DFAE
Technology	35.0%	34.8%
Financial Services	18.4%	17.1%
Consumer Cyclical	9.5%	9.1%
Industrials	9.0%	10.2%
Basic Materials	6.9%	7.7%
Communication Services	6.4%	6.1%
Energy	3.8%	4.2%
Healthcare	3.7%	3.5%
Consumer Defensive	3.3%	3.3%
Utilities	2.2%	2.4%
Real Estate	1.7%	1.5%

Return for Risk

IEMG vs. DFAE — Risk / Return Rank

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

IEMG

IEMG Risk / Return Rank: 67
IEMG Sharpe Ratio Rank: 67
IEMG Sortino Ratio Rank: 61
IEMG Omega Ratio Rank: 71
IEMG Calmar Ratio Rank: 68
IEMG Martin Ratio Rank: 69

DFAE

DFAE Risk / Return Rank: 70
DFAE Sharpe Ratio Rank: 70
DFAE Sortino Ratio Rank: 64
DFAE Omega Ratio Rank: 74
DFAE Calmar Ratio Rank: 71
DFAE Martin Ratio Rank: 73

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.

IEMG vs. DFAE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core MSCI Emerging Markets ETF (IEMG) 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.

	IEMG	DFAE	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.06	-0.07
Sortino ratio: Return per unit of downside risk	2.58	2.65	-0.07
Omega ratio: Gain probability vs. loss probability	1.38	1.39	-0.01
Calmar ratio: Return relative to maximum drawdown	3.10	3.25	-0.15
Martin ratio: Return relative to average drawdown	11.68	12.32	-0.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEMG vs. DFAE - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 1.99, which is comparable to the DFAE Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of IEMG 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.

Sharpe Ratios by Period

	IEMG	DFAE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.99	2.06	-0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	0.45	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.57	-0.24

Drawdowns

IEMG vs. DFAE - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, which is greater than DFAE's maximum drawdown of -32.21%. Use the drawdown chart below to compare losses from any high point for IEMG and DFAE.

Drawdown Indicators

	IEMG	DFAE	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-32.21%	-6.50%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-12.80%	-0.41%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	-18.12%	+0.91%
Max Drawdown (5Y) Largest decline over 5 years	-35.75%	-31.81%	-3.94%
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	—	—
Current Drawdown Current decline from peak	-7.00%	-6.61%	-0.39%
Average Drawdown Average peak-to-trough decline	-12.97%	-10.31%	-2.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.50%	3.37%	+0.13%

Volatility

IEMG vs. DFAE - Volatility Comparison

iShares Core MSCI Emerging Markets ETF (IEMG) and Dimensional Emerging Core Equity Market ETF (DFAE) have volatilities of 10.33% and 10.28%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEMG	DFAE	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.33%	10.28%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	18.35%	17.98%	+0.37%
Volatility (1Y) Calculated over the trailing 1-year period	20.62%	20.20%	+0.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.62%	18.06%	+0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.14%	18.06%	+2.08%

IEMG vs. DFAE - Expense Ratio Comparison

IEMG has a 0.09% expense ratio, which is lower than DFAE's 0.35% expense ratio.

Dividends

IEMG vs. DFAE - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.31%, more than DFAE's 1.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAE Dimensional Emerging Core Equity Market ETF	1.84%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.31%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both IEMG and DFAE in my portfolio?

With a correlation of 0.99, IEMG 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, IEMG or DFAE?

IEMG has higher volatility (10.33%) compared to DFAE (10.28%). In terms of maximum drawdown, IEMG dropped -38.71% vs DFAE's -32.21%.

Which ETF is better, IEMG or DFAE?

On 5-year performance, DFAE leads with 8.03% vs 6.57% for IEMG. On fees, IEMG is cheaper at 0.09% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEMG or DFAE?

Over the 5-year period, DFAE has performed better with a 8.03% return vs 6.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or DFAE?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.35% for DFAE.

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

IEMG has the higher dividend yield at 2.31%, compared with 1.84% for DFAE.

What is the main difference between IEMG and DFAE?

IEMG is categorized as Emerging Markets Diversified, while DFAE is Emerging Markets Equities. They also come from different issuers: iShares and Dimensional. Their fees differ too: 0.09% for IEMG and 0.35% for DFAE.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (2.06 vs 1.99), 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.