IEUS vs. DFE

Last updated Jun 4, 2026

IEUS (iShares MSCI Europe Small-Cap ETF) and DFE (WisdomTree Europe SmallCap Dividend Fund) are both Europe Equities funds - IEUS tracks the MSCI Europe Small Cap Index while DFE tracks the WisdomTree Europe SmallCap Dividend Index. Both are passively managed. Over the past 10 years, IEUS returned 7.44%/yr vs 6.78%/yr for DFE. Their correlation of 0.86 suggests significant overlap in exposure. IEUS charges 0.40%/yr vs 0.58%/yr for DFE.

Performance

IEUS vs. DFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Europe Small-Cap ETF (IEUS) and WisdomTree Europe SmallCap Dividend Fund (DFE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEUS achieves a 5.69% return, which is significantly higher than DFE's 5.19% return. Over the past 10 years, IEUS has outperformed DFE with an annualized return of 7.44%, while DFE has yielded a comparatively lower 6.78% annualized return.

IEUS

• 1D: -1.28%
• 1M: 1.99%
• YTD: 5.69%
• 6M: 9.19%
• 1Y: 14.01%
• 3Y*: 14.06%
• 5Y*: 2.76%
• 10Y*: 7.44%

DFE

• 1D: -1.08%
• 1M: 1.12%
• YTD: 5.19%
• 6M: 8.60%
• 1Y: 14.01%
• 3Y*: 14.44%
• 5Y*: 4.05%
• 10Y*: 6.78%

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

IEUS vs. DFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEUS iShares MSCI Europe Small-Cap ETF	5.69%	32.06%	-1.59%	17.34%	-27.07%	15.06%	12.99%	29.72%	-20.17%	35.04%
DFE WisdomTree Europe SmallCap Dividend Fund	5.19%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%

Correlation

The correlation between IEUS and DFE is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Nov 20, 2007	0.86

The correlation between IEUS and DFE has been stable across timeframes, ranging from 0.86 to 0.94 - a consistent structural relationship.

IEUS vs. DFE - Sectors Allocation Comparison

Sectors	IEUS	DFE
Industrials	26.7%	25.3%
Financial Services	15.2%	9.7%
Consumer Cyclical	11.4%	9.5%
Real Estate	8.4%	6.3%
Basic Materials	7.5%	7.5%
Technology	7.4%	7.1%
Healthcare	7.3%	3.5%
Energy	5.1%	6.9%
Communication Services	5.0%	5.5%
Consumer Defensive	3.7%	4.3%
Utilities	2.4%	3.5%

Return for Risk

IEUS vs. DFE — Risk / Return Rank

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

IEUS

IEUS Risk / Return Rank: 25
IEUS Sharpe Ratio Rank: 25
IEUS Sortino Ratio Rank: 24
IEUS Omega Ratio Rank: 24
IEUS Calmar Ratio Rank: 23
IEUS Martin Ratio Rank: 27

DFE

DFE Risk / Return Rank: 27
DFE Sharpe Ratio Rank: 27
DFE Sortino Ratio Rank: 26
DFE Omega Ratio Rank: 26
DFE Calmar Ratio Rank: 26
DFE Martin Ratio Rank: 29

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.

IEUS vs. DFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Europe Small-Cap ETF (IEUS) and WisdomTree Europe SmallCap Dividend Fund (DFE). 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.

	IEUS	DFE	Difference
Sharpe ratio: Return per unit of total volatility	0.89	0.96	-0.08
Sortino ratio: Return per unit of downside risk	1.33	1.43	-0.10
Omega ratio: Gain probability vs. loss probability	1.16	1.18	-0.01
Calmar ratio: Return relative to maximum drawdown	1.10	1.23	-0.13
Martin ratio: Return relative to average drawdown	3.75	4.24	-0.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEUS vs. DFE - Sharpe Ratio Comparison

The current IEUS Sharpe Ratio is 0.89, which is comparable to the DFE Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of IEUS and DFE, 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

	IEUS	DFE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.89	0.96	-0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	0.21	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.36	0.34	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.29	-0.06

Drawdowns

IEUS vs. DFE - Drawdown Comparison

The maximum IEUS drawdown since its inception was -62.12%, smaller than the maximum DFE drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for IEUS and DFE.

Drawdown Indicators

	IEUS	DFE	Difference
Max Drawdown Largest peak-to-trough decline	-62.12%	-69.38%	+7.26%
Max Drawdown (1Y) Largest decline over 1 year	-12.81%	-11.41%	-1.40%
Max Drawdown (3Y) Largest decline over 3 years	-18.05%	-16.41%	-1.64%
Max Drawdown (5Y) Largest decline over 5 years	-44.86%	-40.34%	-4.52%
Max Drawdown (10Y) Largest decline over 10 years	-44.86%	-49.66%	+4.80%
Current Drawdown Current decline from peak	-1.96%	-3.11%	+1.15%
Average Drawdown Average peak-to-trough decline	-14.91%	-17.73%	+2.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.75%	3.31%	+0.44%

Volatility

IEUS vs. DFE - Volatility Comparison

iShares MSCI Europe Small-Cap ETF (IEUS) has a higher volatility of 5.42% compared to WisdomTree Europe SmallCap Dividend Fund (DFE) at 5.06%. This indicates that IEUS's price experiences larger fluctuations and is considered to be riskier than DFE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEUS	DFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.42%	5.06%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	13.06%	11.98%	+1.08%
Volatility (1Y) Calculated over the trailing 1-year period	15.91%	14.64%	+1.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.78%	19.01%	+1.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.51%	19.77%	+0.74%

IEUS vs. DFE - Expense Ratio Comparison

IEUS has a 0.40% expense ratio, which is lower than DFE's 0.58% expense ratio.

Dividends

IEUS vs. DFE - Dividend Comparison

IEUS's dividend yield for the trailing twelve months is around 3.02%, less than DFE's 3.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	3.89%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
IEUS iShares MSCI Europe Small-Cap ETF	3.02%	3.19%	3.25%	2.97%	3.00%	2.63%	1.21%	4.03%	3.21%	2.13%	2.48%	2.06%

Frequently Asked Questions

Can I hold both IEUS and DFE in my portfolio?

With a correlation of 0.94, IEUS and DFE 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, IEUS or DFE?

IEUS has higher volatility (5.42%) compared to DFE (5.06%). In terms of maximum drawdown, IEUS dropped -62.12% vs DFE's -69.38%.

Which ETF is better, IEUS or DFE?

On 10-year performance, IEUS leads with 7.44% vs 6.78% for DFE. On fees, IEUS is cheaper at 0.40% per year. On volatility, DFE has been the lower-risk option at 5.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEUS or DFE?

Over the 10-year period, IEUS has performed better with a 7.44% return vs 6.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEUS or DFE?

IEUS is cheaper with a 0.40% expense ratio, compared with 0.58% for DFE.

Which ETF pays a higher dividend yield, IEUS or DFE?

DFE has the higher dividend yield at 3.89%, compared with 3.02% for IEUS.

What is the main difference between IEUS and DFE?

IEUS tracks MSCI Europe Small Cap Index, while DFE tracks WisdomTree Europe SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.40% for IEUS and 0.58% for DFE.

Which has better risk-adjusted returns?

DFE currently has the higher Sharpe Ratio (0.96 vs 0.89), 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.