ISCV vs. DFAT

Last updated Jun 4, 2026

ISCV (iShares Morningstar Small Cap Value ETF) and DFAT (Dimensional U.S. Targeted Value ETF) are both Small Cap Value Equities funds. ISCV is passively managed, while DFAT is actively managed. Over the past 3 years, ISCV returned 15.48%/yr vs 16.49%/yr for DFAT. With a 0.98 correlation, they move nearly in lockstep. ISCV charges 0.06%/yr vs 0.28%/yr for DFAT.

Performance

ISCV vs. DFAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Small Cap Value ETF (ISCV) and Dimensional U.S. Targeted Value ETF (DFAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ISCV achieves a 10.08% return, which is significantly lower than DFAT's 13.26% return.

ISCV

• 1D: -0.57%
• 1M: 2.04%
• YTD: 10.08%
• 6M: 10.27%
• 1Y: 27.98%
• 3Y*: 15.48%
• 5Y*: 6.54%
• 10Y*: 8.58%

DFAT

• 1D: -0.75%
• 1M: 1.45%
• YTD: 13.26%
• 6M: 13.13%
• 1Y: 30.02%
• 3Y*: 16.49%
• 5Y*: —
• 10Y*: —

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

ISCV vs. DFAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
ISCV iShares Morningstar Small Cap Value ETF	10.08%	10.38%	9.31%	16.55%	-10.58%	-0.35%
DFAT Dimensional U.S. Targeted Value ETF	13.26%	8.73%	7.80%	20.86%	-6.23%	5.08%

Correlation

The correlation between ISCV and DFAT is 0.97 - 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	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jun 15, 2021	0.98

The correlation between ISCV and DFAT has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

ISCV vs. DFAT - Sectors Allocation Comparison

Sectors	ISCV	DFAT
Financial Services	21.1%	28.0%
Consumer Cyclical	13.4%	14.4%
Industrials	12.1%	15.9%
Healthcare	11.1%	6.2%
Real Estate	11.0%	0.9%
Technology	8.9%	9.2%
Energy	7.2%	11.5%
Basic Materials	5.8%	5.1%
Consumer Defensive	3.7%	6.7%
Utilities	3.6%	0.4%
Communication Services	1.8%	1.8%

Return for Risk

ISCV vs. DFAT — Risk / Return Rank

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

ISCV

ISCV Risk / Return Rank: 54
ISCV Sharpe Ratio Rank: 49
ISCV Sortino Ratio Rank: 53
ISCV Omega Ratio Rank: 47
ISCV Calmar Ratio Rank: 61
ISCV Martin Ratio Rank: 59

DFAT

DFAT Risk / Return Rank: 55
DFAT Sharpe Ratio Rank: 52
DFAT Sortino Ratio Rank: 55
DFAT Omega Ratio Rank: 51
DFAT Calmar Ratio Rank: 63
DFAT Martin Ratio Rank: 57

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.

ISCV vs. DFAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Small Cap Value ETF (ISCV) and Dimensional U.S. Targeted Value ETF (DFAT). 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.

	ISCV	DFAT	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.81	-0.07
Sortino ratio: Return per unit of downside risk	2.58	2.67	-0.09
Omega ratio: Gain probability vs. loss probability	1.30	1.32	-0.02
Calmar ratio: Return relative to maximum drawdown	3.04	3.16	-0.12
Martin ratio: Return relative to average drawdown	10.55	10.13	+0.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISCV vs. DFAT - Sharpe Ratio Comparison

The current ISCV Sharpe Ratio is 1.73, which is comparable to the DFAT Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of ISCV and DFAT, 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

	ISCV	DFAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.73	1.81	-0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.45	-0.09

Drawdowns

ISCV vs. DFAT - Drawdown Comparison

The maximum ISCV drawdown since its inception was -63.14%, which is greater than DFAT's maximum drawdown of -26.12%. Use the drawdown chart below to compare losses from any high point for ISCV and DFAT.

Drawdown Indicators

	ISCV	DFAT	Difference
Max Drawdown Largest peak-to-trough decline	-63.14%	-26.12%	-37.02%
Max Drawdown (1Y) Largest decline over 1 year	-9.25%	-9.55%	+0.30%
Max Drawdown (3Y) Largest decline over 3 years	-25.35%	-26.12%	+0.77%
Max Drawdown (5Y) Largest decline over 5 years	-25.35%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-51.56%	—	—
Current Drawdown Current decline from peak	-0.68%	-0.75%	+0.07%
Average Drawdown Average peak-to-trough decline	-9.14%	-6.24%	-2.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	2.97%	-0.31%

Volatility

ISCV vs. DFAT - Volatility Comparison

The current volatility for iShares Morningstar Small Cap Value ETF (ISCV) is 3.80%, while Dimensional U.S. Targeted Value ETF (DFAT) has a volatility of 4.06%. This indicates that ISCV experiences smaller price fluctuations and is considered to be less risky than DFAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ISCV	DFAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.80%	4.06%	-0.26%
Volatility (6M) Calculated over the trailing 6-month period	10.45%	10.88%	-0.43%
Volatility (1Y) Calculated over the trailing 1-year period	16.28%	16.75%	-0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.83%	21.48%	-0.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.30%	21.48%	+1.82%

ISCV vs. DFAT - Expense Ratio Comparison

ISCV has a 0.06% expense ratio, which is lower than DFAT's 0.28% expense ratio.

Dividends

ISCV vs. DFAT - Dividend Comparison

ISCV's dividend yield for the trailing twelve months is around 1.88%, more than DFAT's 1.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAT Dimensional U.S. Targeted Value ETF	1.45%	1.55%	1.31%	1.34%	1.34%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ISCV iShares Morningstar Small Cap Value ETF	1.88%	2.04%	2.01%	2.21%	2.12%	1.95%	2.01%	2.36%	2.48%	1.74%	2.49%	2.60%

Frequently Asked Questions

Can I hold both ISCV and DFAT in my portfolio?

With a correlation of 0.97, ISCV and DFAT 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, ISCV or DFAT?

DFAT has higher volatility (4.06%) compared to ISCV (3.80%). In terms of maximum drawdown, ISCV dropped -63.14% vs DFAT's -26.12%.

Which ETF is better, ISCV or DFAT?

On 3-year performance, DFAT leads with 16.49% vs 15.48% for ISCV. On fees, ISCV is cheaper at 0.06% per year. On volatility, ISCV has been the lower-risk option at 3.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISCV or DFAT?

Over the 3-year period, DFAT has performed better with a 16.49% return vs 15.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISCV or DFAT?

ISCV is cheaper with a 0.06% expense ratio, compared with 0.28% for DFAT.

Which ETF pays a higher dividend yield, ISCV or DFAT?

ISCV has the higher dividend yield at 1.88%, compared with 1.45% for DFAT.

What is the main difference between ISCV and DFAT?

They also come from different issuers: iShares and Dimensional. Their fees differ too: 0.06% for ISCV and 0.28% for DFAT.

Which has better risk-adjusted returns?

DFAT currently has the higher Sharpe Ratio (1.81 vs 1.73), 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.