IEV vs. DFE

Last updated Jun 23, 2026

IEV (iShares Europe ETF) and DFE (WisdomTree Europe SmallCap Dividend Fund) are both Europe Equities funds - IEV tracks the S&P Europe 350 Index while DFE tracks the WisdomTree Europe SmallCap Dividend Index. Both are passively managed. Over the past 10 years, IEV returned 10.28%/yr vs 8.03%/yr for DFE. Their correlation of 0.86 suggests significant overlap in exposure. IEV charges 0.59%/yr vs 0.58%/yr for DFE.

Performance

IEV vs. DFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Europe ETF (IEV) 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, IEV achieves a 7.36% return, which is significantly higher than DFE's 3.69% return. Over the past 10 years, IEV has outperformed DFE with an annualized return of 10.28%, while DFE has yielded a comparatively lower 8.03% annualized return.

IEV

• 1D: -0.04%
• 1M: 1.28%
• YTD: 7.36%
• 6M: 7.91%
• 1Y: 21.69%
• 3Y*: 16.78%
• 5Y*: 9.34%
• 10Y*: 10.28%

DFE

• 1D: -0.24%
• 1M: -2.46%
• YTD: 3.69%
• 6M: 5.19%
• 1Y: 13.34%
• 3Y*: 14.80%
• 5Y*: 4.73%
• 10Y*: 8.03%

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

IEV vs. DFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEV iShares Europe ETF	7.36%	35.63%	1.36%	20.14%	-14.24%	16.73%	4.07%	24.03%	-14.68%	24.84%
DFE WisdomTree Europe SmallCap Dividend Fund	3.69%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%

Correlation

The correlation between IEV and DFE is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jun 16, 2006	0.86

The correlation between IEV and DFE has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

IEV vs. DFE - Sectors Allocation Comparison

Sectors	IEV	DFE
Financial Services	24.5%	10.8%
Industrials	18.8%	31.1%
Healthcare	12.1%	5.6%
Technology	9.9%	6.8%
Consumer Defensive	8.6%	4.2%
Consumer Cyclical	6.8%	12.4%
Basic Materials	5.5%	8.3%
Energy	4.6%	4.6%
Utilities	4.6%	3.4%
Communication Services	3.3%	5.8%
Real Estate	0.6%	7.0%

Return for Risk

IEV vs. DFE — Risk / Return Rank

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

IEV

IEV Risk / Return Rank: 39
IEV Sharpe Ratio Rank: 40
IEV Sortino Ratio Rank: 40
IEV Omega Ratio Rank: 38
IEV Calmar Ratio Rank: 36
IEV Martin Ratio Rank: 41

DFE

DFE Risk / Return Rank: 26
DFE Sharpe Ratio Rank: 26
DFE Sortino Ratio Rank: 25
DFE Omega Ratio Rank: 24
DFE Calmar Ratio Rank: 25
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.

IEV vs. DFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Europe ETF (IEV) 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.

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.

	IEV	DFE	Difference
Sharpe ratio: Return per unit of total volatility	1.37	0.89	+0.47
Sortino ratio: Return per unit of downside risk	1.99	1.35	+0.64
Omega ratio: Gain probability vs. loss probability	1.24	1.17	+0.08
Calmar ratio: Return relative to maximum drawdown	1.77	1.17	+0.60
Martin ratio: Return relative to average drawdown	6.47	3.96	+2.51

IEV vs. DFE - Sharpe Ratio Comparison

The current IEV Sharpe Ratio is 1.37, which is higher than the DFE Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of IEV 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.

Drawdowns

IEV vs. DFE - Drawdown Comparison

The maximum IEV drawdown since its inception was -63.27%, smaller than the maximum DFE drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for IEV and DFE.

Drawdown Indicators

	IEV	DFE	Difference
Max Drawdown Largest peak-to-trough decline	-63.27%	-69.38%	+6.11%
Max Drawdown (1Y) Largest decline over 1 year	-12.31%	-11.41%	-0.90%
Max Drawdown (3Y) Largest decline over 3 years	-14.63%	-16.41%	+1.78%
Max Drawdown (5Y) Largest decline over 5 years	-30.60%	-40.34%	+9.74%
Max Drawdown (10Y) Largest decline over 10 years	-36.62%	-49.66%	+13.04%
Current Drawdown Current decline from peak	-0.95%	-4.50%	+3.55%
Average Drawdown Average peak-to-trough decline	-15.02%	-17.69%	+2.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.36%	3.38%	-0.02%

Volatility

IEV vs. DFE - Volatility Comparison

iShares Europe ETF (IEV) and WisdomTree Europe SmallCap Dividend Fund (DFE) have volatilities of 4.90% and 4.76%, 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

	IEV	DFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	4.76%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	13.46%	12.58%	+0.88%
Volatility (1Y) Calculated over the trailing 1-year period	15.96%	15.02%	+0.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.63%	19.06%	-1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.61%	19.72%	-1.11%

IEV vs. DFE - Expense Ratio Comparison

IEV has a 0.59% expense ratio, which is higher than DFE's 0.58% expense ratio.

Dividends

IEV vs. DFE - Dividend Comparison

IEV's dividend yield for the trailing twelve months is around 2.81%, less than DFE's 3.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	3.95%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
IEV iShares Europe ETF	2.81%	2.73%	3.10%	2.77%	3.06%	2.81%	1.76%	3.06%	3.43%	2.39%	3.08%	2.81%

Frequently Asked Questions

Can I hold both IEV and DFE in my portfolio?

IEV and DFE have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEV or DFE?

IEV has higher volatility (4.90%) compared to DFE (4.76%). In terms of maximum drawdown, IEV dropped -63.27% vs DFE's -69.38%.

Which ETF is better, IEV or DFE?

On 10-year performance, IEV leads with 10.28% vs 8.03% for DFE. On fees, DFE is cheaper at 0.58% per year. On volatility, DFE has been the lower-risk option at 4.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEV or DFE?

Over the 10-year period, IEV has performed better with a 10.28% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEV or DFE?

DFE is cheaper with a 0.58% expense ratio, compared with 0.59% for IEV.

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

DFE has the higher dividend yield at 3.95%, compared with 2.81% for IEV.

What is the main difference between IEV and DFE?

IEV tracks S&P Europe 350 Index, while DFE tracks WisdomTree Europe SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.59% for IEV and 0.58% for DFE.

Which has better risk-adjusted returns?

IEV currently has the higher Sharpe Ratio (1.37 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.