MSTI vs. DFSD

Last updated Jul 14, 2026

MSTI (Madison Short-Term Strategic Income ETF) and DFSD (Dimensional Short-Duration Fixed Income ETF) are both Short-Term Bond funds. Both are actively managed. Over the past year, MSTI returned 3.51% vs 3.46% for DFSD. A 0.66 correlation means they provide meaningful diversification when combined. MSTI charges 0.40%/yr vs 0.16%/yr for DFSD.

Performance

MSTI vs. DFSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Madison Short-Term Strategic Income ETF (MSTI) and Dimensional Short-Duration Fixed Income ETF (DFSD). 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 MSTI having a 0.60% return and DFSD slightly higher at 0.61%.

MSTI

• 1D: -0.17%
• 1M: -0.13%
• 6M: 0.53%
• YTD: 0.60%
• 1Y: 3.51%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFSD

• 1D: -0.20%
• 1M: -0.20%
• 6M: 0.55%
• YTD: 0.61%
• 1Y: 3.46%
• 3Y*: 5.18%
• 5Y*: —
• 10Y*: —

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

MSTI vs. DFSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MSTI Madison Short-Term Strategic Income ETF	0.60%	6.33%	4.84%	4.13%
DFSD Dimensional Short-Duration Fixed Income ETF	0.61%	6.59%	4.60%	3.35%

Correlation

The correlation between MSTI and DFSD is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (All Time) Calculated using the full available price history since Sep 6, 2023	0.66

The correlation between MSTI and DFSD has been stable across timeframes, ranging from 0.66 to 0.67 - a consistent structural relationship.

Return for Risk

MSTI vs. DFSD — Risk / Return Rank

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

MSTI

MSTI Risk / Return Rank: 62
MSTI Sharpe Ratio Rank: 54
MSTI Sortino Ratio Rank: 56
MSTI Omega Ratio Rank: 59
MSTI Calmar Ratio Rank: 67
MSTI Martin Ratio Rank: 74

DFSD

DFSD Risk / Return Rank: 68
DFSD Sharpe Ratio Rank: 70
DFSD Sortino Ratio Rank: 75
DFSD Omega Ratio Rank: 73
DFSD Calmar Ratio Rank: 59
DFSD Martin Ratio Rank: 63

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.

MSTI vs. DFSD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Madison Short-Term Strategic Income ETF (MSTI) and Dimensional Short-Duration Fixed Income ETF (DFSD). 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.

	MSTI	DFSD	Difference
Sharpe ratio: Return per unit of total volatility	1.46	1.79	-0.33
Sortino ratio: Return per unit of downside risk	2.16	2.69	-0.53
Omega ratio: Gain probability vs. loss probability	1.29	1.34	-0.05
Calmar ratio: Return relative to maximum drawdown	2.67	2.37	+0.31
Martin ratio: Return relative to average drawdown	10.93	8.92	+2.01

MSTI vs. DFSD - Sharpe Ratio Comparison

The current MSTI Sharpe Ratio is 1.46, which is comparable to the DFSD Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of MSTI and DFSD, 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

MSTI vs. DFSD - Drawdown Comparison

The maximum MSTI drawdown since its inception was -1.48%, smaller than the maximum DFSD drawdown of -8.45%. Use the drawdown chart below to compare losses from any high point for MSTI and DFSD.

Drawdown Indicators

	MSTI	DFSD	Difference
Max Drawdown Largest peak-to-trough decline	-1.48%	-8.45%	+6.97%
Max Drawdown (1Y) Largest decline over 1 year	-1.32%	-1.47%	+0.15%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.47%	—
Current Drawdown Current decline from peak	-0.44%	-0.52%	+0.08%
Average Drawdown Average peak-to-trough decline	-0.29%	-2.03%	+1.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.32%	0.39%	-0.07%

Volatility

MSTI vs. DFSD - Volatility Comparison

The current volatility for Madison Short-Term Strategic Income ETF (MSTI) is 0.52%, while Dimensional Short-Duration Fixed Income ETF (DFSD) has a volatility of 0.67%. This indicates that MSTI experiences smaller price fluctuations and is considered to be less risky than DFSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTI	DFSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.52%	0.67%	-0.15%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	1.57%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	2.42%	1.95%	+0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.68%	2.76%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.68%	2.76%	-0.08%

MSTI vs. DFSD - Expense Ratio Comparison

MSTI has a 0.40% expense ratio, which is higher than DFSD's 0.16% expense ratio.

Dividends

MSTI vs. DFSD - Dividend Comparison

MSTI's dividend yield for the trailing twelve months is around 5.35%, more than DFSD's 4.20% yield.

Position	TTM	2025	2024	2023	2022	2021
DFSD Dimensional Short-Duration Fixed Income ETF	4.20%	4.12%	4.81%	3.89%	2.12%	0.11%
MSTI Madison Short-Term Strategic Income ETF	5.35%	5.40%	5.48%	1.55%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSTI and DFSD in my portfolio?

MSTI and DFSD have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTI or DFSD?

DFSD has higher volatility (0.67%) compared to MSTI (0.52%). In terms of maximum drawdown, MSTI dropped -1.48% vs DFSD's -8.45%.

Which ETF is better, MSTI or DFSD?

On 1-year performance, MSTI leads with 3.51% vs 3.46% for DFSD. On fees, DFSD is cheaper at 0.16% per year. On volatility, MSTI has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTI or DFSD?

Over the 1-year period, MSTI has performed better with a 3.51% return vs 3.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTI or DFSD?

DFSD is cheaper with a 0.16% expense ratio, compared with 0.40% for MSTI.

Which ETF pays a higher dividend yield, MSTI or DFSD?

MSTI has the higher dividend yield at 5.35%, compared with 4.20% for DFSD.

What is the main difference between MSTI and DFSD?

They also come from different issuers: Madison and Dimensional. Their fees differ too: 0.40% for MSTI and 0.16% for DFSD.

Which has better risk-adjusted returns?

DFSD currently has the higher Sharpe Ratio (1.79 vs 1.46), 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.