XC vs. DFEM

Last updated Jun 4, 2026

XC (WisdomTree Emerging Markets ex-China Fund) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both Emerging Markets Diversified funds. XC is passively managed, while DFEM is actively managed. Over the past 3 years, XC returned 9.87%/yr vs 23.24%/yr for DFEM. Their correlation of 0.84 suggests significant overlap in exposure. XC charges 0.32%/yr vs 0.39%/yr for DFEM.

Performance

XC vs. DFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets ex-China Fund (XC) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XC achieves a -3.47% return, which is significantly lower than DFEM's 25.59% return.

XC

• 1D: -1.53%
• 1M: -1.76%
• YTD: -3.47%
• 6M: -2.10%
• 1Y: 8.33%
• 3Y*: 9.87%
• 5Y*: —
• 10Y*: —

DFEM

• 1D: -1.28%
• 1M: 6.85%
• YTD: 25.59%
• 6M: 27.96%
• 1Y: 50.40%
• 3Y*: 23.24%
• 5Y*: —
• 10Y*: —

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

XC vs. DFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
XC WisdomTree Emerging Markets ex-China Fund	-3.47%	18.19%	5.49%	21.31%	1.49%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	25.59%	29.51%	7.53%	13.91%	3.91%

Correlation

The correlation between XC and DFEM is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (All Time) Calculated using the full available price history since Sep 23, 2022	0.84

The correlation between XC and DFEM has been stable across timeframes, ranging from 0.79 to 0.84 - a consistent structural relationship.

XC vs. DFEM - Sectors Allocation Comparison

Sectors	XC	DFEM
Financial Services	13.8%	15.4%
Basic Materials	7.0%	8.4%
Consumer Cyclical	6.8%	9.8%
Consumer Defensive	4.9%	3.7%
Industrials	4.7%	11.9%
Communication Services	2.7%	5.5%
Energy	1.6%	4.4%
Utilities	1.3%	2.2%
Real Estate	1.3%	2.0%
Technology	1.2%	32.9%
Healthcare	0.7%	3.8%

Return for Risk

XC vs. DFEM — Risk / Return Rank

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

XC

XC Risk / Return Rank: 18
XC Sharpe Ratio Rank: 18
XC Sortino Ratio Rank: 18
XC Omega Ratio Rank: 17
XC Calmar Ratio Rank: 17
XC Martin Ratio Rank: 18

DFEM

DFEM Risk / Return Rank: 81
DFEM Sharpe Ratio Rank: 83
DFEM Sortino Ratio Rank: 78
DFEM Omega Ratio Rank: 82
DFEM Calmar Ratio Rank: 80
DFEM Martin Ratio Rank: 81

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.

XC vs. DFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets ex-China Fund (XC) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). 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.

	XC	DFEM	Difference
Sharpe ratio: Return per unit of total volatility	0.57	2.74	-2.18
Sortino ratio: Return per unit of downside risk	0.91	3.54	-2.63
Omega ratio: Gain probability vs. loss probability	1.11	1.50	-0.39
Calmar ratio: Return relative to maximum drawdown	0.67	4.18	-3.51
Martin ratio: Return relative to average drawdown	1.94	16.33	-14.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XC vs. DFEM - Sharpe Ratio Comparison

The current XC Sharpe Ratio is 0.57, which is lower than the DFEM Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of XC and DFEM, 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

	XC	DFEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.57	2.74	-2.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.92	-0.20

Drawdowns

XC vs. DFEM - Drawdown Comparison

The maximum XC drawdown since its inception was -20.97%, roughly equal to the maximum DFEM drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for XC and DFEM.

Drawdown Indicators

	XC	DFEM	Difference
Max Drawdown Largest peak-to-trough decline	-20.97%	-20.82%	-0.15%
Max Drawdown (1Y) Largest decline over 1 year	-12.47%	-12.12%	-0.35%
Max Drawdown (3Y) Largest decline over 3 years	-20.97%	-18.09%	-2.88%
Current Drawdown Current decline from peak	-9.35%	-1.28%	-8.07%
Average Drawdown Average peak-to-trough decline	-4.12%	-5.03%	+0.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.29%	3.09%	+1.20%

Volatility

XC vs. DFEM - Volatility Comparison

The current volatility for WisdomTree Emerging Markets ex-China Fund (XC) is 5.00%, while Dimensional Emerging Markets Core Equity 2 ETF (DFEM) has a volatility of 7.78%. This indicates that XC experiences smaller price fluctuations and is considered to be less risky than DFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XC	DFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.00%	7.78%	-2.78%
Volatility (6M) Calculated over the trailing 6-month period	12.60%	16.02%	-3.42%
Volatility (1Y) Calculated over the trailing 1-year period	14.78%	18.45%	-3.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.87%	17.26%	-1.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.87%	17.26%	-1.39%

XC vs. DFEM - Expense Ratio Comparison

XC has a 0.32% expense ratio, which is lower than DFEM's 0.39% expense ratio.

Dividends

XC vs. DFEM - Dividend Comparison

XC's dividend yield for the trailing twelve months is around 12.41%, more than DFEM's 1.82% yield.

Position	TTM	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.82%	2.32%	2.50%	2.38%	1.99%
XC WisdomTree Emerging Markets ex-China Fund	12.41%	11.74%	1.49%	1.42%	0.57%

Frequently Asked Questions

Can I hold both XC and DFEM in my portfolio?

XC and DFEM have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XC or DFEM?

DFEM has higher volatility (7.78%) compared to XC (5.00%). In terms of maximum drawdown, XC dropped -20.97% vs DFEM's -20.82%.

Which ETF is better, XC or DFEM?

On 3-year performance, DFEM leads with 23.24% vs 9.87% for XC. On fees, XC is cheaper at 0.32% per year. On volatility, XC has been the lower-risk option at 5.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XC or DFEM?

Over the 3-year period, DFEM has performed better with a 23.24% return vs 9.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XC or DFEM?

XC is cheaper with a 0.32% expense ratio, compared with 0.39% for DFEM.

Which ETF pays a higher dividend yield, XC or DFEM?

XC has the higher dividend yield at 12.41%, compared with 1.82% for DFEM.

What is the main difference between XC and DFEM?

They also come from different issuers: WisdomTree and Dimensional. Their fees differ too: 0.32% for XC and 0.39% for DFEM.

Which has better risk-adjusted returns?

DFEM currently has the higher Sharpe Ratio (2.74 vs 0.57), 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.