VEA vs. DFIS

Last updated Jun 9, 2026

VEA (Vanguard FTSE Developed Markets ETF) and DFIS (Dimensional International Small Cap ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while DFIS is a Foreign Small & Mid Cap Equities fund actively managed by Dimensional. VEA is passively managed, while DFIS is actively managed. Over the past 3 years, VEA returned 18.65%/yr vs 18.49%/yr for DFIS. Their correlation of 0.95 suggests significant overlap in exposure. VEA charges 0.03%/yr vs 0.39%/yr for DFIS.

Performance

VEA vs. DFIS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Dimensional International Small Cap ETF (DFIS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 12.02% return, which is significantly higher than DFIS's 8.42% return.

VEA

• 1D: 1.00%
• 1M: -1.37%
• YTD: 12.02%
• 6M: 14.95%
• 1Y: 28.06%
• 3Y*: 18.65%
• 5Y*: 9.09%
• 10Y*: 10.14%

DFIS

• 1D: 0.08%
• 1M: -2.57%
• YTD: 8.42%
• 6M: 11.78%
• 1Y: 25.15%
• 3Y*: 18.49%
• 5Y*: —
• 10Y*: —

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

VEA vs. DFIS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VEA Vanguard FTSE Developed Markets ETF	12.02%	35.16%	3.15%	17.93%	-10.29%
DFIS Dimensional International Small Cap ETF	8.42%	37.49%	3.80%	15.19%	-12.94%

Correlation

The correlation between VEA and DFIS is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (All Time) Calculated using the full available price history since Mar 25, 2022	0.95

The correlation between VEA and DFIS has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

VEA vs. DFIS - Sectors Allocation Comparison

Sectors	VEA	DFIS
Financial Services	23.3%	12.0%
Industrials	19.2%	23.9%
Technology	13.8%	9.6%
Healthcare	8.2%	5.2%
Basic Materials	7.5%	14.2%
Consumer Cyclical	7.5%	13.5%
Consumer Defensive	5.6%	5.0%
Energy	5.4%	6.0%
Communication Services	3.4%	3.6%
Utilities	3.3%	3.3%
Real Estate	2.7%	3.7%

Return for Risk

VEA vs. DFIS — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 56
VEA Sharpe Ratio Rank: 57
VEA Sortino Ratio Rank: 55
VEA Omega Ratio Rank: 57
VEA Calmar Ratio Rank: 54
VEA Martin Ratio Rank: 58

DFIS

DFIS Risk / Return Rank: 52
DFIS Sharpe Ratio Rank: 56
DFIS Sortino Ratio Rank: 56
DFIS Omega Ratio Rank: 55
DFIS Calmar Ratio Rank: 45
DFIS Martin Ratio Rank: 50

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.

VEA vs. DFIS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Dimensional International Small Cap ETF (DFIS). 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.

	VEA	DFIS	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.71	+0.04
Sortino ratio: Return per unit of downside risk	2.39	2.39	+0.01
Omega ratio: Gain probability vs. loss probability	1.32	1.31	+0.01
Calmar ratio: Return relative to maximum drawdown	2.42	2.03	+0.39
Martin ratio: Return relative to average drawdown	9.39	7.79	+1.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEA vs. DFIS - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.75, which is comparable to the DFIS Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of VEA and DFIS, 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

	VEA	DFIS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	1.71	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.64	-0.40

Drawdowns

VEA vs. DFIS - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than DFIS's maximum drawdown of -27.23%. Use the drawdown chart below to compare losses from any high point for VEA and DFIS.

Drawdown Indicators

	VEA	DFIS	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-27.23%	-33.45%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-12.44%	+0.81%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-13.55%	+0.10%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	—	—
Current Drawdown Current decline from peak	-3.40%	-3.55%	+0.15%
Average Drawdown Average peak-to-trough decline	-13.29%	-6.16%	-7.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	3.23%	-0.23%

Volatility

VEA vs. DFIS - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.03% compared to Dimensional International Small Cap ETF (DFIS) at 4.81%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than DFIS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	DFIS	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.03%	4.81%	+1.22%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	12.36%	+1.55%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	14.80%	+1.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.63%	17.35%	-0.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	17.35%	+0.05%

VEA vs. DFIS - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than DFIS's 0.39% expense ratio.

Dividends

VEA vs. DFIS - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.69%, more than DFIS's 2.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFIS Dimensional International Small Cap ETF	2.05%	2.23%	2.19%	2.36%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VEA Vanguard FTSE Developed Markets ETF	2.69%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both VEA and DFIS in my portfolio?

With a correlation of 0.92, VEA and DFIS 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, VEA or DFIS?

VEA has higher volatility (6.03%) compared to DFIS (4.81%). In terms of maximum drawdown, VEA dropped -60.68% vs DFIS's -27.23%.

Which ETF is better, VEA or DFIS?

On 3-year performance, VEA leads with 18.65% vs 18.49% for DFIS. On fees, VEA is cheaper at 0.03% per year. On volatility, DFIS has been the lower-risk option at 4.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or DFIS?

Over the 3-year period, VEA has performed better with a 18.65% return vs 18.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or DFIS?

VEA is cheaper with a 0.03% expense ratio, compared with 0.39% for DFIS.

Which ETF pays a higher dividend yield, VEA or DFIS?

VEA has the higher dividend yield at 2.69%, compared with 2.05% for DFIS.

What is the main difference between VEA and DFIS?

VEA is categorized as Foreign Large Cap Equities, while DFIS is Foreign Small & Mid Cap Equities. They also come from different issuers: Vanguard and Dimensional. Their fees differ too: 0.03% for VEA and 0.39% for DFIS.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.75 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.