SUB vs. DFSD

Last updated Aug 2, 2026

SUB (iShares Short-Term National Muni Bond ETF) and DFSD (Dimensional Short-Duration Fixed Income ETF) are both exchange-traded funds - SUB is a Municipal Bonds fund tracking the ICE Short Maturity AMT-Free US National Municipal Index, while DFSD is a Short-Term Bond fund actively managed by Dimensional. SUB is passively managed, while DFSD is actively managed. Over the past 3 years, SUB returned 3.00%/yr vs 5.18%/yr for DFSD. Their 0.51 correlation means they have sometimes moved together and sometimes differently. SUB charges 0.07%/yr vs 0.16%/yr for DFSD.

Performance

SUB vs. DFSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Short-Term National Muni Bond ETF (SUB) 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 SUB having a 0.76% return and DFSD slightly higher at 0.79%.

SUB

• 1D: 0.01%
• 1M: -0.15%
• 6M: 0.19%
• YTD: 0.76%
• 1Y: 1.85%
• 3Y*: 3.00%
• 5Y*: 1.40%
• 10Y*: 1.42%
• ALL TIME*: 1.58%

DFSD

• 1D: -0.06%
• 1M: -0.23%
• 6M: 0.35%
• YTD: 0.79%
• 1Y: 2.80%
• 3Y*: 5.18%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 2.47%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFSD Dimensional Short-Duration Fixed Income ETF	$24.91M	$26.60M	$25.77M
SUB iShares Short-Term National Muni Bond ETF	$44.46M	$43.86M	$47.41M

SUB vs. DFSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SUB iShares Short-Term National Muni Bond ETF	0.76%	3.64%	2.17%	2.91%	-2.05%	0.08%
DFSD Dimensional Short-Duration Fixed Income ETF	0.79%	6.59%	4.60%	6.09%	-5.87%	-0.05%

Correlation

The correlation between SUB and DFSD is 0.55, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.55
Correlation (3Y) Balances recent behavior with more history.	0.52
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021	0.51

The correlation between SUB and DFSD has been stable across timeframes, ranging from 0.51 to 0.55 - a consistent structural relationship.

Return for Risk

SUB vs. DFSD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SUB

SUB Risk / Return Rank: 74
SUB Sharpe Ratio Rank: 79
SUB Sortino Ratio Rank: 78
SUB Omega Ratio Rank: 85
SUB Calmar Ratio Rank: 72
SUB Martin Ratio Rank: 58

DFSD

DFSD Risk / Return Rank: 73
DFSD Sharpe Ratio Rank: 76
DFSD Sortino Ratio Rank: 80
DFSD Omega Ratio Rank: 78
DFSD Calmar Ratio Rank: 65
DFSD Martin Ratio Rank: 69

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SUB vs. DFSD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Short-Term National Muni Bond ETF (SUB) 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.

	SUB	DFSD	Difference
Sharpe ratio: Return per unit of total volatility	1.80	1.71	+0.08
Sortino ratio: Return per unit of downside risk	2.50	2.57	-0.07
Omega ratio: Gain probability vs. loss probability	1.37	1.32	+0.04
Calmar ratio: Return relative to maximum drawdown	2.50	2.27	+0.24
Martin ratio: Return relative to average drawdown	6.88	8.33	-1.45

SUB vs. DFSD - Sharpe Ratio Comparison

The current SUB Sharpe Ratio is 1.80, which is comparable to the DFSD Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of SUB 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

SUB vs. DFSD - Drawdown Comparison

The maximum SUB drawdown since its inception was -9.46%, which is greater than DFSD's maximum drawdown of -8.45%. Use the drawdown chart below to compare losses from any high point for SUB and DFSD.

Drawdown Indicators

	SUB	DFSD	Difference
Max Drawdown Largest peak-to-trough decline	-9.46%	-8.45%	-1.01%
Max Drawdown (1Y) Largest decline over 1 year	-0.81%	-1.47%	+0.66%
Max Drawdown (3Y) Largest decline over 3 years	-1.23%	-1.47%	+0.24%
Max Drawdown (5Y) Largest decline over 5 years	-4.33%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-9.46%	—	—
Current Drawdown Current decline from peak	-0.20%	-0.35%	+0.15%
Average Drawdown Average peak-to-trough decline	-0.91%	-2.01%	+1.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.29%	0.40%	-0.11%

Volatility

SUB vs. DFSD - Volatility Comparison

iShares Short-Term National Muni Bond ETF (SUB) and Dimensional Short-Duration Fixed Income ETF (DFSD) have volatilities of 0.51% and 0.52%, 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

	SUB	DFSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.51%	0.52%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	0.90%	1.59%	-0.69%
Volatility (1Y) Calculated over the trailing 1-year period	1.12%	1.94%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.65%	2.75%	-1.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.60%	2.75%	-0.15%

SUB vs. DFSD - Expense Ratio Comparison

SUB has a 0.07% expense ratio, which is lower than DFSD's 0.16% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SUB vs. DFSD - Dividend Comparison

SUB's dividend yield for the trailing twelve months is around 2.54%, less than DFSD's 4.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSD Dimensional Short-Duration Fixed Income ETF	4.59%	4.12%	4.81%	3.89%	2.12%	0.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SUB iShares Short-Term National Muni Bond ETF	2.34%	2.42%	2.10%	1.73%	0.86%	0.72%	1.23%	1.58%	1.32%	0.95%	0.75%	0.77%

Frequently Asked Questions

Can I hold both SUB and DFSD in my portfolio?

SUB and DFSD have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SUB or DFSD?

DFSD has higher volatility (0.52%) compared to SUB (0.51%). In terms of maximum drawdown, SUB dropped -9.46% vs DFSD's -8.45%.

Which ETF is better, SUB or DFSD?

On 3-year performance, DFSD leads with 5.18% vs 3.00% for SUB. On fees, SUB is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SUB or DFSD?

Over the 3-year period, DFSD has performed better with a 5.18% return vs 3.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SUB or DFSD?

SUB is cheaper with a 0.07% expense ratio, compared with 0.16% for DFSD.

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

DFSD has the higher dividend yield at 4.59%, compared with 2.34% for SUB.

What is the main difference between SUB and DFSD?

SUB is categorized as Municipal Bonds, while DFSD is Short-Term Bond. They also come from different issuers: iShares and Dimensional. Their fees differ too: 0.07% for SUB and 0.16% for DFSD.

Which has better risk-adjusted returns?

SUB currently has the higher Sharpe Ratio (1.80 vs 1.71), 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.