VBR vs. DFAT

Last updated Jun 5, 2026

VBR (Vanguard Small-Cap Value ETF) and DFAT (Dimensional U.S. Targeted Value ETF) are both Small Cap Value Equities funds. VBR is passively managed, while DFAT is actively managed. Over the past 3 years, VBR returned 17.22%/yr vs 17.55%/yr for DFAT. With a 0.98 correlation, they move nearly in lockstep. VBR charges 0.05%/yr vs 0.28%/yr for DFAT.

Performance

VBR vs. DFAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Value ETF (VBR) 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, VBR achieves a 12.51% return, which is significantly lower than DFAT's 14.41% return.

VBR

• 1D: 0.76%
• 1M: 2.07%
• YTD: 12.51%
• 6M: 12.70%
• 1Y: 27.37%
• 3Y*: 17.22%
• 5Y*: 8.12%
• 10Y*: 10.49%

DFAT

• 1D: 1.01%
• 1M: 1.12%
• YTD: 14.41%
• 6M: 14.52%
• 1Y: 32.14%
• 3Y*: 17.55%
• 5Y*: —
• 10Y*: —

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

VBR vs. DFAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VBR Vanguard Small-Cap Value ETF	12.51%	9.09%	12.40%	16.00%	-9.38%	2.25%
DFAT Dimensional U.S. Targeted Value ETF	14.41%	8.73%	7.80%	20.86%	-6.23%	5.08%

Correlation

The correlation between VBR 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	0.97
Correlation (All Time) Calculated using the full available price history since Jun 15, 2021	0.98

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

VBR vs. DFAT - Sectors Allocation Comparison

Sectors	VBR	DFAT
Industrials	18.1%	15.9%
Financial Services	17.6%	28.0%
Consumer Cyclical	12.4%	14.4%
Technology	10.6%	9.2%
Real Estate	10.1%	0.9%
Healthcare	7.9%	6.2%
Basic Materials	6.3%	5.1%
Energy	5.2%	11.5%
Utilities	4.8%	0.4%
Consumer Defensive	4.0%	6.7%
Communication Services	2.5%	1.8%

Return for Risk

VBR vs. DFAT — Risk / Return Rank

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

VBR

VBR Risk / Return Rank: 58
VBR Sharpe Ratio Rank: 54
VBR Sortino Ratio Rank: 57
VBR Omega Ratio Rank: 52
VBR Calmar Ratio Rank: 63
VBR Martin Ratio Rank: 62

DFAT

DFAT Risk / Return Rank: 61
DFAT Sharpe Ratio Rank: 58
DFAT Sortino Ratio Rank: 61
DFAT Omega Ratio Rank: 57
DFAT Calmar Ratio Rank: 69
DFAT Martin Ratio Rank: 61

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.

VBR vs. DFAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value ETF (VBR) 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.

	VBR	DFAT	Difference
Sharpe ratio: Return per unit of total volatility	1.82	1.93	-0.12
Sortino ratio: Return per unit of downside risk	2.66	2.84	-0.18
Omega ratio: Gain probability vs. loss probability	1.32	1.35	-0.03
Calmar ratio: Return relative to maximum drawdown	3.11	3.38	-0.28
Martin ratio: Return relative to average drawdown	10.96	10.84	+0.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBR vs. DFAT - Sharpe Ratio Comparison

The current VBR Sharpe Ratio is 1.82, which is comparable to the DFAT Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of VBR 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

	VBR	DFAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.82	1.93	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.46	-0.04

Drawdowns

VBR vs. DFAT - Drawdown Comparison

The maximum VBR drawdown since its inception was -61.98%, which is greater than DFAT's maximum drawdown of -26.12%. Use the drawdown chart below to compare losses from any high point for VBR and DFAT.

Drawdown Indicators

	VBR	DFAT	Difference
Max Drawdown Largest peak-to-trough decline	-61.98%	-26.12%	-35.86%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-9.55%	+0.70%
Max Drawdown (3Y) Largest decline over 3 years	-24.19%	-26.12%	+1.93%
Max Drawdown (5Y) Largest decline over 5 years	-24.19%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.28%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-8.27%	-6.24%	-2.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	2.97%	-0.47%

Volatility

VBR vs. DFAT - Volatility Comparison

Vanguard Small-Cap Value ETF (VBR) and Dimensional U.S. Targeted Value ETF (DFAT) have volatilities of 3.89% and 3.96%, 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

	VBR	DFAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.89%	3.96%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	10.47%	10.91%	-0.44%
Volatility (1Y) Calculated over the trailing 1-year period	15.14%	16.70%	-1.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.77%	21.48%	-1.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.73%	21.48%	+0.25%

VBR vs. DFAT - Expense Ratio Comparison

VBR has a 0.05% expense ratio, which is lower than DFAT's 0.28% expense ratio.

Dividends

VBR vs. DFAT - Dividend Comparison

VBR's dividend yield for the trailing twelve months is around 1.75%, more than DFAT's 1.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAT Dimensional U.S. Targeted Value ETF	1.43%	1.55%	1.31%	1.34%	1.34%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VBR Vanguard Small-Cap Value ETF	1.75%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both VBR and DFAT in my portfolio?

With a correlation of 0.97, VBR 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, VBR or DFAT?

DFAT has higher volatility (3.96%) compared to VBR (3.89%). In terms of maximum drawdown, VBR dropped -61.98% vs DFAT's -26.12%.

Which ETF is better, VBR or DFAT?

On 3-year performance, DFAT leads with 17.55% vs 17.22% for VBR. On fees, VBR is cheaper at 0.05% 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, VBR or DFAT?

Over the 3-year period, DFAT has performed better with a 17.55% return vs 17.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBR or DFAT?

VBR is cheaper with a 0.05% expense ratio, compared with 0.28% for DFAT.

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

VBR has the higher dividend yield at 1.75%, compared with 1.43% for DFAT.

What is the main difference between VBR and DFAT?

They also come from different issuers: Vanguard and Dimensional. Their fees differ too: 0.05% for VBR and 0.28% for DFAT.

Which has better risk-adjusted returns?

DFAT currently has the higher Sharpe Ratio (1.93 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.