VTSIX vs. DFAT

Last updated Aug 2, 2026

VTSIX (Vanguard Tax-Managed Small-Cap Fund Institutional Shares) and DFAT (Dimensional U.S. Targeted Value ETF) are both funds - VTSIX is a Small Cap Blend Equities fund managed by BlackRock, while DFAT is a Small Cap Value Equities fund actively managed by Dimensional. Over the past 5 years, VTSIX returned 7.55%/yr vs 11.52%/yr for DFAT. Their 0.97 correlation means they have historically moved very closely together. VTSIX charges 0.06%/yr vs 0.28%/yr for DFAT.

Performance

VTSIX vs. DFAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX) 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, VTSIX achieves a 21.95% return, which is significantly higher than DFAT's 19.60% return.

VTSIX

• 1D: 0.86%
• 1M: -0.56%
• 6M: 15.50%
• YTD: 21.95%
• 1Y: 36.17%
• 3Y*: 13.34%
• 5Y*: 7.55%
• 10Y*: 10.78%
• ALL TIME*: 10.41%

DFAT

• 1D: -0.16%
• 1M: 1.65%
• 6M: 12.28%
• YTD: 19.60%
• 1Y: 34.62%
• 3Y*: 14.22%
• 5Y*: 11.52%
• 10Y*: —
• ALL TIME*: 10.22%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFAT Dimensional U.S. Targeted Value ETF	$27.35M	$25.25M	$22.69M
VTSIX Vanguard Tax-Managed Small-Cap Fund Institutional Shares	$0.00	$0.00	$0.00

VTSIX vs. DFAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VTSIX Vanguard Tax-Managed Small-Cap Fund Institutional Shares	21.95%	5.96%	8.64%	15.99%	-16.14%	1.37%
DFAT Dimensional U.S. Targeted Value ETF	19.60%	8.73%	7.80%	20.86%	-6.23%	3.66%

Correlation

The correlation between VTSIX and DFAT is 0.93, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.93
Correlation (3Y) Balances recent behavior with more history.	0.96
Correlation (5Y) Shows whether the relationship held over a longer period.	0.97
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021	0.97

The correlation between VTSIX and DFAT has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

VTSIX vs. DFAT - Sectors Allocation Comparison

Sectors	VTSIX	DFAT
Financial Services	17.1%	29.1%
Industrials	15.6%	15.5%
Technology	15.5%	7.9%
Consumer Cyclical	13.4%	14.1%
Healthcare	12.2%	7.0%
Real Estate	7.6%	0.8%
Energy	4.9%	10.0%
Basic Materials	4.8%	5.5%
Consumer Defensive	4.0%	7.3%
Communication Services	3.2%	1.9%
Utilities	1.7%	0.4%

Return for Risk

VTSIX vs. DFAT — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTSIX

VTSIX Risk / Return Rank: 84
VTSIX Sharpe Ratio Rank: 80
VTSIX Sortino Ratio Rank: 80
VTSIX Omega Ratio Rank: 74
VTSIX Calmar Ratio Rank: 93
VTSIX Martin Ratio Rank: 91

DFAT

DFAT Risk / Return Rank: 86
DFAT Sharpe Ratio Rank: 85
DFAT Sortino Ratio Rank: 88
DFAT Omega Ratio Rank: 84
DFAT Calmar Ratio Rank: 86
DFAT Martin Ratio Rank: 84

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTSIX vs. DFAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX) 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.

	VTSIX	DFAT	Difference
Sharpe ratio: Return per unit of total volatility	1.87	2.01	-0.13
Sortino ratio: Return per unit of downside risk	2.77	2.99	-0.22
Omega ratio: Gain probability vs. loss probability	1.32	1.36	-0.04
Calmar ratio: Return relative to maximum drawdown	3.79	3.37	+0.42
Martin ratio: Return relative to average drawdown	12.90	11.35	+1.55

VTSIX vs. DFAT - Sharpe Ratio Comparison

The current VTSIX Sharpe Ratio is 1.87, which is comparable to the DFAT Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of VTSIX 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

VTSIX vs. DFAT - Drawdown Comparison

The maximum VTSIX drawdown since its inception was -57.81%, which is greater than DFAT's maximum drawdown of -26.12%. Use the drawdown chart below to compare losses from any high point for VTSIX and DFAT.

Drawdown Indicators

	VTSIX	DFAT	Difference
Max Drawdown Largest peak-to-trough decline	-57.81%	-26.12%	-31.69%
Max Drawdown (1Y) Largest decline over 1 year	-8.59%	-9.55%	+0.96%
Max Drawdown (3Y) Largest decline over 3 years	-27.92%	-26.12%	-1.80%
Max Drawdown (5Y) Largest decline over 5 years	-27.92%	-26.12%	-1.80%
Max Drawdown (10Y) Largest decline over 10 years	-43.86%	—	—
Current Drawdown Current decline from peak	-1.82%	-1.10%	-0.72%
Average Drawdown Average peak-to-trough decline	-8.88%	-6.12%	-2.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	2.83%	-0.30%

Volatility

VTSIX vs. DFAT - Volatility Comparison

Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX) and Dimensional U.S. Targeted Value ETF (DFAT) have volatilities of 3.48% and 3.42%, 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

	VTSIX	DFAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.48%	3.42%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	11.66%	10.32%	+1.34%
Volatility (1Y) Calculated over the trailing 1-year period	17.40%	16.08%	+1.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.32%	21.19%	+0.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.06%	21.26%	+1.80%

VTSIX vs. DFAT - Expense Ratio Comparison

VTSIX has a 0.06% expense ratio, which is lower than DFAT's 0.28% expense ratio.

Dividends

VTSIX vs. DFAT - Dividend Comparison

VTSIX's dividend yield for the trailing twelve months is around 1.22%, less than DFAT's 1.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFAT Dimensional U.S. Targeted Value ETF	1.36%	1.55%	1.31%	1.34%	1.34%	1.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTSIX Vanguard Tax-Managed Small-Cap Fund Institutional Shares	1.22%	1.31%	1.47%	1.52%	1.54%	1.19%	1.11%	1.17%	1.29%	1.13%	1.03%	1.30%

Frequently Asked Questions

Can I hold both VTSIX and DFAT in my portfolio?

With a correlation of 0.93, VTSIX 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, VTSIX or DFAT?

VTSIX has higher volatility (3.48%) compared to DFAT (3.42%). In terms of maximum drawdown, VTSIX dropped -57.81% vs DFAT's -26.12%.

Which has better risk-adjusted returns?

DFAT currently has the higher Sharpe Ratio (2.01 vs 1.87), 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.