TILT vs. DFAT

Last updated Jun 24, 2026

TILT (FlexShares Morningstar US Market Factor Tilt Index Fund) and DFAT (Dimensional U.S. Targeted Value ETF) are both exchange-traded funds - TILT is a Large Cap Blend Equities fund tracking the Morningstar US Market Factor Tilt Index, while DFAT is a Small Cap Value Equities fund actively managed by Dimensional. TILT is passively managed, while DFAT is actively managed. Over the past 5 years, TILT returned 11.30%/yr vs 10.18%/yr for DFAT. Their correlation of 0.88 suggests significant overlap in exposure. TILT charges 0.25%/yr vs 0.28%/yr for DFAT.

Performance

TILT vs. DFAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) 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, TILT achieves a 9.45% return, which is significantly lower than DFAT's 15.13% return.

TILT

• 1D: -0.90%
• 1M: 0.03%
• YTD: 9.45%
• 6M: 8.42%
• 1Y: 25.74%
• 3Y*: 19.88%
• 5Y*: 11.30%
• 10Y*: 14.16%

DFAT

• 1D: -0.35%
• 1M: 2.05%
• YTD: 15.13%
• 6M: 13.50%
• 1Y: 30.29%
• 3Y*: 17.00%
• 5Y*: 10.18%
• 10Y*: —

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

TILT vs. DFAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	9.45%	16.59%	19.88%	24.70%	-17.25%	7.92%
DFAT Dimensional U.S. Targeted Value ETF	15.13%	8.73%	7.80%	20.86%	-6.23%	3.66%

Correlation

The correlation between TILT and DFAT is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021	0.88

The correlation between TILT and DFAT has been stable across timeframes, ranging from 0.79 to 0.88 - a consistent structural relationship.

TILT vs. DFAT - Sectors Allocation Comparison

Sectors	TILT	DFAT
Technology	30.4%	9.4%
Financial Services	15.3%	27.9%
Consumer Cyclical	10.6%	14.9%
Industrials	9.7%	16.2%
Healthcare	9.2%	6.4%
Communication Services	8.3%	1.8%
Energy	4.3%	10.5%
Consumer Defensive	4.3%	6.9%
Real Estate	3.0%	0.8%
Basic Materials	2.7%	4.8%
Utilities	2.2%	0.4%

Return for Risk

TILT vs. DFAT — Risk / Return Rank

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

TILT

TILT Risk / Return Rank: 68
TILT Sharpe Ratio Rank: 67
TILT Sortino Ratio Rank: 66
TILT Omega Ratio Rank: 66
TILT Calmar Ratio Rank: 65
TILT Martin Ratio Rank: 75

DFAT

DFAT Risk / Return Rank: 59
DFAT Sharpe Ratio Rank: 56
DFAT Sortino Ratio Rank: 60
DFAT Omega Ratio Rank: 54
DFAT Calmar Ratio Rank: 67
DFAT Martin Ratio Rank: 60

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.

TILT vs. DFAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) 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.

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.

	TILT	DFAT	Difference
Sharpe ratio: Return per unit of total volatility	2.04	1.82	+0.23
Sortino ratio: Return per unit of downside risk	2.82	2.69	+0.13
Omega ratio: Gain probability vs. loss probability	1.37	1.32	+0.04
Calmar ratio: Return relative to maximum drawdown	3.04	3.19	-0.15
Martin ratio: Return relative to average drawdown	13.10	10.22	+2.88

TILT vs. DFAT - Sharpe Ratio Comparison

The current TILT Sharpe Ratio is 2.04, which is comparable to the DFAT Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of TILT 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.

Drawdowns

TILT vs. DFAT - Drawdown Comparison

The maximum TILT drawdown since its inception was -38.46%, which is greater than DFAT's maximum drawdown of -26.12%. Use the drawdown chart below to compare losses from any high point for TILT and DFAT.

Drawdown Indicators

	TILT	DFAT	Difference
Max Drawdown Largest peak-to-trough decline	-38.46%	-26.12%	-12.34%
Max Drawdown (1Y) Largest decline over 1 year	-8.51%	-9.55%	+1.04%
Max Drawdown (3Y) Largest decline over 3 years	-19.85%	-26.12%	+6.27%
Max Drawdown (5Y) Largest decline over 5 years	-24.12%	-26.12%	+2.00%
Max Drawdown (10Y) Largest decline over 10 years	-38.46%	—	—
Current Drawdown Current decline from peak	-1.90%	-1.81%	-0.09%
Average Drawdown Average peak-to-trough decline	-4.22%	-6.24%	+2.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	2.97%	-1.00%

Volatility

TILT vs. DFAT - Volatility Comparison

FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) has a higher volatility of 4.31% compared to Dimensional U.S. Targeted Value ETF (DFAT) at 3.91%. This indicates that TILT's price experiences larger fluctuations and is considered to be riskier than DFAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TILT	DFAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	3.91%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	9.58%	10.92%	-1.34%
Volatility (1Y) Calculated over the trailing 1-year period	12.69%	16.78%	-4.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	21.39%	-3.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.75%	21.43%	-2.68%

TILT vs. DFAT - Expense Ratio Comparison

TILT has a 0.25% expense ratio, which is lower than DFAT's 0.28% expense ratio.

Dividends

TILT vs. DFAT - Dividend Comparison

TILT's dividend yield for the trailing twelve months is around 1.10%, less than DFAT's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAT Dimensional U.S. Targeted Value ETF	1.42%	1.55%	1.31%	1.34%	1.34%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	1.10%	1.15%	1.23%	1.44%	1.60%	1.16%	1.49%	1.54%	1.97%	1.55%	1.60%	1.98%

Frequently Asked Questions

Can I hold both TILT and DFAT in my portfolio?

TILT and DFAT have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TILT or DFAT?

TILT has higher volatility (4.31%) compared to DFAT (3.91%). In terms of maximum drawdown, TILT dropped -38.46% vs DFAT's -26.12%.

Which ETF is better, TILT or DFAT?

On 5-year performance, TILT leads with 11.30% vs 10.18% for DFAT. On fees, TILT is cheaper at 0.25% per year. On volatility, DFAT has been the lower-risk option at 3.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TILT or DFAT?

Over the 5-year period, TILT has performed better with a 11.30% return vs 10.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TILT or DFAT?

TILT is cheaper with a 0.25% expense ratio, compared with 0.28% for DFAT.

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

DFAT has the higher dividend yield at 1.42%, compared with 1.10% for TILT.

What is the main difference between TILT and DFAT?

TILT is categorized as Large Cap Blend Equities, while DFAT is Small Cap Value Equities. They also come from different issuers: FlexShares and Dimensional. Their fees differ too: 0.25% for TILT and 0.28% for DFAT.

Which has better risk-adjusted returns?

TILT currently has the higher Sharpe Ratio (2.04 vs 1.82), 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.