VTBIX vs. DFCF

Last updated Jun 3, 2026

VTBIX (Vanguard Total Bond Market II Index Fund Investor Shares) and DFCF (Dimensional Core Fixed Income ETF) are both funds - VTBIX is a Total Bond Market fund managed by Vanguard, while DFCF is a Intermediate Core Bond fund actively managed by Dimensional. Over the past 3 years, VTBIX returned 3.84%/yr vs 4.86%/yr for DFCF. Their correlation of 0.93 suggests significant overlap in exposure. VTBIX charges 0.09%/yr vs 0.17%/yr for DFCF.

Performance

VTBIX vs. DFCF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) and Dimensional Core Fixed Income ETF (DFCF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTBIX achieves a 0.30% return, which is significantly lower than DFCF's 0.56% return.

VTBIX

• 1D: -0.11%
• 1M: 0.13%
• YTD: 0.30%
• 6M: 0.42%
• 1Y: 5.14%
• 3Y*: 3.84%
• 5Y*: -0.01%
• 10Y*: 1.44%

DFCF

• 1D: 0.00%
• 1M: 0.24%
• YTD: 0.56%
• 6M: 0.61%
• 1Y: 5.90%
• 3Y*: 4.86%
• 5Y*: —
• 10Y*: —

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

VTBIX vs. DFCF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VTBIX Vanguard Total Bond Market II Index Fund Investor Shares	0.30%	7.11%	1.25%	5.03%	-13.18%	0.60%
DFCF Dimensional Core Fixed Income ETF	0.56%	7.89%	1.86%	6.94%	-14.48%	0.23%

Correlation

The correlation between VTBIX and DFCF is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021	0.93

The correlation between VTBIX and DFCF has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

Return for Risk

VTBIX vs. DFCF — Risk / Return Rank

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

VTBIX

VTBIX Risk / Return Rank: 19
VTBIX Sharpe Ratio Rank: 17
VTBIX Sortino Ratio Rank: 18
VTBIX Omega Ratio Rank: 16
VTBIX Calmar Ratio Rank: 24
VTBIX Martin Ratio Rank: 21

DFCF

DFCF Risk / Return Rank: 41
DFCF Sharpe Ratio Rank: 42
DFCF Sortino Ratio Rank: 43
DFCF Omega Ratio Rank: 40
DFCF Calmar Ratio Rank: 40
DFCF Martin Ratio Rank: 40

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.

VTBIX vs. DFCF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) and Dimensional Core Fixed Income ETF (DFCF). 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.

	VTBIX	DFCF	Difference
Sharpe ratio Return per unit of total volatility	1.23	1.49	-0.26
Sortino ratio Return per unit of downside risk	1.86	2.19	-0.32
Omega ratio Gain probability vs. loss probability	1.21	1.26	-0.05
Calmar ratio Return relative to maximum drawdown	1.90	2.06	-0.17
Martin ratio Return relative to average drawdown	5.70	6.31	-0.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTBIX vs. DFCF - Sharpe Ratio Comparison

The current VTBIX Sharpe Ratio is 1.23, which is comparable to the DFCF Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of VTBIX and DFCF, 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

	VTBIX	DFCF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.23	1.49	-0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.00	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.04	+0.22

Drawdowns

VTBIX vs. DFCF - Drawdown Comparison

The maximum VTBIX drawdown since its inception was -18.72%, roughly equal to the maximum DFCF drawdown of -19.56%. Use the drawdown chart below to compare losses from any high point for VTBIX and DFCF.

Drawdown Indicators

	VTBIX	DFCF	Difference
Max Drawdown Largest peak-to-trough decline	-18.72%	-19.56%	+0.84%
Max Drawdown (1Y) Largest decline over 1 year	-2.84%	-2.79%	-0.05%
Max Drawdown (3Y) Largest decline over 3 years	-5.98%	-5.05%	-0.93%
Max Drawdown (5Y) Largest decline over 5 years	-18.11%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-18.72%	—	—
Current Drawdown Current decline from peak	-3.00%	-1.27%	-1.73%
Average Drawdown Average peak-to-trough decline	-4.42%	-8.04%	+3.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.94%	0.91%	+0.03%

Volatility

VTBIX vs. DFCF - Volatility Comparison

Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) and Dimensional Core Fixed Income ETF (DFCF) have volatilities of 1.33% and 1.38%, 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

	VTBIX	DFCF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.33%	1.38%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	2.80%	2.92%	-0.12%
Volatility (1Y) Calculated over the trailing 1-year period	3.92%	3.98%	-0.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.95%	6.47%	-0.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.92%	6.47%	-1.55%

VTBIX vs. DFCF - Expense Ratio Comparison

VTBIX has a 0.09% expense ratio, which is lower than DFCF's 0.17% 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

VTBIX vs. DFCF - Dividend Comparison

VTBIX's dividend yield for the trailing twelve months is around 3.99%, less than DFCF's 4.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFCF Dimensional Core Fixed Income ETF	4.30%	4.48%	4.61%	4.51%	3.27%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTBIX Vanguard Total Bond Market II Index Fund Investor Shares	3.99%	3.88%	3.70%	2.53%	2.47%	1.75%	3.20%	2.72%	2.51%	2.43%	2.48%	2.64%

Frequently Asked Questions

Can I hold both VTBIX and DFCF in my portfolio?

VTBIX and DFCF have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTBIX or DFCF?

DFCF has higher volatility (1.38%) compared to VTBIX (1.33%). In terms of maximum drawdown, VTBIX dropped -18.72% vs DFCF's -19.56%.

Which has better risk-adjusted returns?

DFCF currently has the higher Sharpe Ratio (1.49 vs 1.23), 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.