PRWBX vs. DFSD

Last updated Jun 4, 2026

PRWBX (T. Rowe Price Short-Term Bond Fund) and DFSD (Dimensional Short-Duration Fixed Income ETF) are both Short-Term Bond funds. Over the past 3 years, PRWBX returned 5.79%/yr vs 5.33%/yr for DFSD. A 0.58 correlation means they provide meaningful diversification when combined. PRWBX charges 0.43%/yr vs 0.16%/yr for DFSD.

Performance

PRWBX vs. DFSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Short-Term Bond Fund (PRWBX) 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 PRWBX having a 0.60% return and DFSD slightly higher at 0.62%.

PRWBX

• 1D: 0.00%
• 1M: 0.14%
• YTD: 0.60%
• 6M: 1.57%
• 1Y: 5.53%
• 3Y*: 5.79%
• 5Y*: 2.69%
• 10Y*: 2.57%

DFSD

• 1D: -0.13%
• 1M: 0.23%
• YTD: 0.62%
• 6M: 0.86%
• 1Y: 4.23%
• 3Y*: 5.33%
• 5Y*: —
• 10Y*: —

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

PRWBX vs. DFSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PRWBX T. Rowe Price Short-Term Bond Fund	0.60%	7.22%	6.22%	5.54%	-4.99%	-0.23%
DFSD Dimensional Short-Duration Fixed Income ETF	0.62%	6.59%	4.60%	6.09%	-5.87%	-0.02%

Correlation

The correlation between PRWBX and DFSD is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.58

The correlation between PRWBX and DFSD shifts across timeframes, from 0.44 (1 year) to 0.58 (all time), reflecting how their relationship changes across market environments.

Return for Risk

PRWBX vs. DFSD — Risk / Return Rank

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

PRWBX

PRWBX Risk / Return Rank: 89
PRWBX Sharpe Ratio Rank: 75
PRWBX Sortino Ratio Rank: 91
PRWBX Omega Ratio Rank: 95
PRWBX Calmar Ratio Rank: 93
PRWBX Martin Ratio Rank: 93

DFSD

DFSD Risk / Return Rank: 67
DFSD Sharpe Ratio Rank: 66
DFSD Sortino Ratio Rank: 76
DFSD Omega Ratio Rank: 73
DFSD Calmar Ratio Rank: 58
DFSD Martin Ratio Rank: 62

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.

PRWBX vs. DFSD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Short-Term Bond Fund (PRWBX) 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.

	PRWBX	DFSD	Difference
Sharpe ratio: Return per unit of total volatility	2.51	2.24	+0.28
Sortino ratio: Return per unit of downside risk	4.43	3.44	+0.99
Omega ratio: Gain probability vs. loss probability	1.76	1.44	+0.32
Calmar ratio: Return relative to maximum drawdown	5.31	2.90	+2.41
Martin ratio: Return relative to average drawdown	20.29	11.21	+9.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PRWBX vs. DFSD - Sharpe Ratio Comparison

The current PRWBX Sharpe Ratio is 2.51, which is comparable to the DFSD Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of PRWBX 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.

Sharpe Ratios by Period

	PRWBX	DFSD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.51	2.24	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.06	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.18	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.41	0.91	+0.49

Drawdowns

PRWBX vs. DFSD - Drawdown Comparison

The maximum PRWBX drawdown since its inception was -7.78%, smaller than the maximum DFSD drawdown of -8.45%. Use the drawdown chart below to compare losses from any high point for PRWBX and DFSD.

Drawdown Indicators

	PRWBX	DFSD	Difference
Max Drawdown Largest peak-to-trough decline	-7.78%	-8.45%	+0.67%
Max Drawdown (1Y) Largest decline over 1 year	-1.07%	-1.47%	+0.40%
Max Drawdown (3Y) Largest decline over 3 years	-1.07%	-1.47%	+0.40%
Max Drawdown (5Y) Largest decline over 5 years	-7.29%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-7.29%	—	—
Current Drawdown Current decline from peak	-0.22%	-0.44%	+0.22%
Average Drawdown Average peak-to-trough decline	-0.95%	-2.07%	+1.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	0.38%	-0.10%

Volatility

PRWBX vs. DFSD - Volatility Comparison

T. Rowe Price Short-Term Bond Fund (PRWBX) has a higher volatility of 0.69% compared to Dimensional Short-Duration Fixed Income ETF (DFSD) at 0.64%. This indicates that PRWBX's price experiences larger fluctuations and is considered to be riskier than DFSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PRWBX	DFSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.69%	0.64%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	1.62%	1.47%	+0.15%
Volatility (1Y) Calculated over the trailing 1-year period	2.27%	1.90%	+0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.56%	2.78%	-0.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.18%	2.78%	-0.60%

PRWBX vs. DFSD - Expense Ratio Comparison

PRWBX has a 0.43% expense ratio, which is higher than DFSD's 0.16% expense ratio.

Dividends

PRWBX vs. DFSD - Dividend Comparison

PRWBX's dividend yield for the trailing twelve months is around 5.63%, more than DFSD's 3.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSD Dimensional Short-Duration Fixed Income ETF	3.98%	4.12%	4.81%	3.89%	2.12%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PRWBX T. Rowe Price Short-Term Bond Fund	5.63%	5.64%	5.12%	3.57%	1.38%	1.24%	1.92%	2.52%	2.22%	1.75%	1.58%	1.46%

Frequently Asked Questions

Can I hold both PRWBX and DFSD in my portfolio?

PRWBX and DFSD have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PRWBX or DFSD?

PRWBX has higher volatility (0.69%) compared to DFSD (0.64%). In terms of maximum drawdown, PRWBX dropped -7.78% vs DFSD's -8.45%.

Which has better risk-adjusted returns?

PRWBX currently has the higher Sharpe Ratio (2.51 vs 2.24), 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.