VSS vs. DFIS

Last updated Jun 4, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and DFIS (Dimensional International Small Cap ETF) are both Foreign Small & Mid Cap Equities funds. VSS is passively managed, while DFIS is actively managed. Over the past 3 years, VSS returned 16.67%/yr vs 19.32%/yr for DFIS. With a 0.95 correlation, they move nearly in lockstep. VSS charges 0.07%/yr vs 0.39%/yr for DFIS.

Performance

VSS vs. DFIS - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VSS having a 10.57% return and DFIS slightly lower at 10.27%.

VSS

• 1D: -1.12%
• 1M: 1.27%
• YTD: 10.57%
• 6M: 13.10%
• 1Y: 27.32%
• 3Y*: 16.67%
• 5Y*: 5.76%
• 10Y*: 8.07%

DFIS

• 1D: -1.12%
• 1M: 2.92%
• YTD: 10.27%
• 6M: 13.97%
• 1Y: 28.03%
• 3Y*: 19.32%
• 5Y*: —
• 10Y*: —

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

VSS vs. DFIS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.57%	29.61%	2.94%	15.52%	-15.47%
DFIS Dimensional International Small Cap ETF	10.27%	37.49%	3.80%	15.19%	-12.94%

Correlation

The correlation between VSS and DFIS is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (All Time) Calculated using the full available price history since Mar 25, 2022	0.95

The correlation between VSS and DFIS has been stable across timeframes, ranging from 0.94 to 0.95 - a consistent structural relationship.

VSS vs. DFIS - Sectors Allocation Comparison

Sectors	VSS	DFIS
Industrials	18.7%	23.9%
Technology	13.3%	9.6%
Basic Materials	12.1%	14.2%
Financial Services	10.8%	12.0%
Consumer Cyclical	9.3%	13.5%
Real Estate	7.3%	3.7%
Healthcare	6.2%	5.2%
Energy	4.9%	6.0%
Consumer Defensive	3.4%	5.0%
Utilities	2.5%	3.3%
Communication Services	2.3%	3.6%

Return for Risk

VSS vs. DFIS — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 51
VSS Omega Ratio Rank: 54
VSS Calmar Ratio Rank: 47
VSS Martin Ratio Rank: 53

DFIS

DFIS Risk / Return Rank: 53
DFIS Sharpe Ratio Rank: 56
DFIS Sortino Ratio Rank: 56
DFIS Omega Ratio Rank: 55
DFIS Calmar Ratio Rank: 46
DFIS Martin Ratio Rank: 51

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.

VSS vs. DFIS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) 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.

	VSS	DFIS	Difference
Sharpe ratio: Return per unit of total volatility	1.85	1.94	-0.09
Sortino ratio: Return per unit of downside risk	2.54	2.71	-0.17
Omega ratio: Gain probability vs. loss probability	1.34	1.35	-0.01
Calmar ratio: Return relative to maximum drawdown	2.36	2.26	+0.10
Martin ratio: Return relative to average drawdown	9.13	8.73	+0.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSS vs. DFIS - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.85, which is comparable to the DFIS Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of VSS 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

	VSS	DFIS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.85	1.94	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.67	-0.12

Drawdowns

VSS vs. DFIS - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, which is greater than DFIS's maximum drawdown of -27.23%. Use the drawdown chart below to compare losses from any high point for VSS and DFIS.

Drawdown Indicators

	VSS	DFIS	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-27.23%	-16.28%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-12.44%	+0.82%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-13.55%	-2.18%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	—	—
Current Drawdown Current decline from peak	-2.58%	-1.91%	-0.67%
Average Drawdown Average peak-to-trough decline	-9.64%	-6.17%	-3.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	3.22%	-0.22%

Volatility

VSS vs. DFIS - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 5.33% compared to Dimensional International Small Cap ETF (DFIS) at 4.71%. This indicates that VSS'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

	VSS	DFIS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.33%	4.71%	+0.62%
Volatility (6M) Calculated over the trailing 6-month period	12.64%	12.04%	+0.60%
Volatility (1Y) Calculated over the trailing 1-year period	14.81%	14.54%	+0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	17.32%	-0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	17.32%	-0.05%

VSS vs. DFIS - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is lower than DFIS's 0.39% expense ratio.

Dividends

VSS vs. DFIS - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.07%, more than DFIS's 2.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFIS Dimensional International Small Cap ETF	2.02%	2.23%	2.19%	2.36%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.07%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both VSS and DFIS in my portfolio?

With a correlation of 0.94, VSS 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, VSS or DFIS?

VSS has higher volatility (5.33%) compared to DFIS (4.71%). In terms of maximum drawdown, VSS dropped -43.51% vs DFIS's -27.23%.

Which ETF is better, VSS or DFIS?

On 3-year performance, DFIS leads with 19.32% vs 16.67% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, DFIS has been the lower-risk option at 4.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or DFIS?

Over the 3-year period, DFIS has performed better with a 19.32% return vs 16.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or DFIS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.39% for DFIS.

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

VSS has the higher dividend yield at 3.07%, compared with 2.02% for DFIS.

What is the main difference between VSS and DFIS?

They also come from different issuers: Vanguard and Dimensional. Their fees differ too: 0.07% for VSS and 0.39% for DFIS.

Which has better risk-adjusted returns?

DFIS currently has the higher Sharpe Ratio (1.94 vs 1.85), 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.