IEMG vs. DFEM
IEMG (iShares Core MSCI Emerging Markets ETF) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both Emerging Markets Diversified funds. IEMG is passively managed, while DFEM is actively managed. Over the past 3 years, IEMG returned 18.80%/yr vs 18.33%/yr for DFEM. With a 0.98 correlation, they move nearly in lockstep. IEMG charges 0.09%/yr vs 0.39%/yr for DFEM.
Performance
IEMG vs. DFEM - Performance Comparison
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Returns By Period
In the year-to-date period, IEMG achieves a 15.78% return, which is significantly higher than DFEM's 14.84% return.
IEMG
- 1D
- 0.30%
- 1M
- -9.83%
- 6M
- 9.74%
- YTD
- 15.78%
- 1Y
- 29.70%
- 3Y*
- 18.80%
- 5Y*
- 6.56%
- 10Y*
- 8.77%
- ALL TIME*
- 6.08%
DFEM
- 1D
- -0.11%
- 1M
- -9.90%
- 6M
- 9.42%
- YTD
- 14.84%
- 1Y
- 27.43%
- 3Y*
- 18.33%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 12.52%
IEMG vs. DFEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
IEMG iShares Core MSCI Emerging Markets ETF | 15.78% | 32.56% | 6.50% | 11.52% | -5.86% |
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 14.84% | 29.51% | 7.53% | 13.91% | -9.60% |
Correlation
The correlation between IEMG and DFEM 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 (All Time) Calculated using the full available price history since Apr 27, 2022 | 0.98 |
The correlation between IEMG and DFEM has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.
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Return for Risk
IEMG vs. DFEM — Risk / Return Rank
IEMG
DFEM
IEMG vs. DFEM - 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 Markets Core Equity 2 ETF (DFEM). 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.
| IEMG | DFEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.05 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.25 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.26 | 2.27 | -0.01 |
| Martin ratioReturn relative to average drawdown | 7.35 | 7.41 | -0.06 |
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Drawdowns
IEMG vs. DFEM - Drawdown Comparison
The maximum IEMG drawdown since its inception was -38.71%, which is greater than DFEM's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for IEMG and DFEM.
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Drawdown Indicators
| IEMG | DFEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.71% | -20.82% | -17.89% |
Max Drawdown (1Y)Largest decline over 1 year | -13.21% | -12.12% | -1.09% |
Max Drawdown (3Y)Largest decline over 3 years | -17.21% | -18.09% | +0.88% |
Max Drawdown (5Y)Largest decline over 5 years | -33.61% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -38.71% | — | — |
Current DrawdownCurrent decline from peak | -10.22% | -10.39% | +0.17% |
Average DrawdownAverage peak-to-trough decline | -12.90% | -5.03% | -7.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.05% | 3.71% | +0.34% |
Volatility
IEMG vs. DFEM - Volatility Comparison
iShares Core MSCI Emerging Markets ETF (IEMG) has a higher volatility of 9.61% compared to Dimensional Emerging Markets Core Equity 2 ETF (DFEM) at 9.02%. This indicates that IEMG's price experiences larger fluctuations and is considered to be riskier than DFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEMG | DFEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.61% | 9.02% | +0.59% |
Volatility (6M)Calculated over the trailing 6-month period | 21.09% | 20.03% | +1.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.06% | 21.87% | +1.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.17% | 18.04% | +1.13% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.24% | 18.04% | +2.20% |
IEMG vs. DFEM - Expense Ratio Comparison
IEMG has a 0.09% expense ratio, which is lower than DFEM's 0.39% expense ratio.
Dividends
IEMG vs. DFEM - Dividend Comparison
IEMG's dividend yield for the trailing twelve months is around 2.33%, more than DFEM's 1.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 1.96% | 2.32% | 2.50% | 2.38% | 1.99% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
IEMG iShares Core MSCI Emerging Markets ETF | 2.33% | 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
With a correlation of 0.99, IEMG and DFEM 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.
IEMG has higher volatility (9.61%) compared to DFEM (9.02%). In terms of maximum drawdown, IEMG dropped -38.71% vs DFEM's -20.82%.
On 3-year performance, IEMG leads with 18.80% vs 18.33% for DFEM. On fees, IEMG is cheaper at 0.09% per year. On volatility, DFEM has been the lower-risk option at 9.02%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, IEMG has performed better with a 18.80% return vs 18.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEMG is cheaper with a 0.09% expense ratio, compared with 0.39% for DFEM.
IEMG has the higher dividend yield at 2.33%, compared with 1.96% for DFEM.
They also come from different issuers: iShares and Dimensional. Their fees differ too: 0.09% for IEMG and 0.39% for DFEM.
IEMG currently has the higher Sharpe Ratio (1.30 vs 1.26), 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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