DFAE vs DFEM
Dimensional Emerging Core Equity Market ETF vs Dimensional Emerging Markets Core Equity 2 ETF
Which is better, DFAE or DFEM?
Nearly the same fund. DFAE costs less.
DFAE has a lower expense ratio. DFAE led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 1.00.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFAE | DFEM |
|---|---|---|
| Expense Ratio | 0.35%Best | 0.39% |
| AUM | $9.9B | $9.4B |
| Dividend Yield | 1.87% | 1.96% |
| Holdings | 6,482 | 6,512 |
| YTD Return | +15.84% | +16.20%Best |
| 1Y Return | +24.29%Best | +24.16% |
| 3Y Return (annualized) | +21.73%Best | +21.20% |
| 5Y Return (annualized) | +9.09% | - |
| Volatility (annualized) | 17.3%Best | 17.4% |
| Max Drawdown | -20.6%Best | -20.8% |
| $10,000 over 4.5 years | $17,533Best | $17,284 |
| Fund Family | Dimensional | Dimensional |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 1, 2020 | Apr 26, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.5 years row, are measured over the window both funds cover: Apr 27, 2022 to Oct 14, 2026 (4.5 years).
DFAE vs DFEM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.5 years both funds cover.
DFAE vs DFEM Performance
Dimensional Emerging Core Equity Market ETF (DFAE) is an ETF from Dimensional and Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is an ETF from Dimensional. Over the past year DFAE returned +24.29% while DFEM returned +24.16%. Year to date, DFAE is up 15.84% versus a gain of 16.20% for DFEM.
Over three years, DFAE compounded at +21.73% per year against +21.20% for DFEM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEM has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 17.3% for DFAE. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -20.6% for DFAE and -20.8% for DFEM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DFAE charges 0.35% per year while DFEM charges 0.39%. On a $10,000 position that is $35 vs $39 annually, a gap of $4 per year that compounds over a long holding period. On income, DFAE currently yields 1.87% against 1.96% for DFEM.
Holdings Overlap
We hold position weights for 6,154 holdings in DFAE and 6,649 in DFEM, totalling 93.2% and 83.3% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 5,619 positions appear in both.
5,619 positions in common, counted across the 6,154 positions we hold weights for in DFAE and 6,649 in DFEM, against full books of 6,482 and 6,512.
Top Shared Holdings
| Stock | Weight in DFAE | Weight in DFEM | Difference |
|---|---|---|---|
| 2330:TWTsmc | 12.96% | 0.09% | 12.87% |
| 005930:KRSamsung Electronics (Equity) | 5.31% | 4.29% | 1.02% |
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 5.09% | 4.47% | 0.62% |
| 0700:KYTencent Holdings Ltd Ordinary Shares | 2.19% | 1.69% | 0.50% |
| 9988:HKAlibaba Group Holding Limited Ordinary Shares | 1.03% | 0.71% | 0.32% |
| 2454:TWMediaTek Inc ORD TWD10 | 1.18% | 0.51% | 0.67% |
| 0939:SHBank China Construction B | 0.76% | 0.75% | 0.01% |
| SMSN:KRSamsung Electronics Co. Ltd. GDR | 0.79% | 0.52% | 0.27% |
| 2317:TWHon Hai Precision Industry Co Ltd | 0.76% | 0.45% | 0.31% |
| 2308:TWDelta Electronics Inc | 0.59% | 0.34% | 0.25% |
You are not choosing between two funds in isolation.
Whichever of DFAE and DFEM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAE or DFEM?
DFAE has an expense ratio of 0.35% while DFEM charges 0.39%. DFAE is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, DFAE or DFEM?
Over the past year DFAE returned +24.29% vs +24.16% for DFEM, so DFAE leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAE or DFEM?
DFEM has been the more volatile fund at 17.4% annualized versus 17.3% for DFAE. Worst drawdown: DFAE -20.6% vs DFEM -20.8%.
Should I hold both DFAE and DFEM?
DFAE and DFEM have a monthly-return correlation of 1.00, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, DFAE or DFEM?
DFAE yields 1.87% while DFEM yields 1.96%, so DFEM currently pays the higher dividend yield.
Is DFEM better than DFAE?
DFAE has a lower expense ratio. DFAE led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 1.00. Which one suits a particular account depends on what it is for. This is information, not a recommendation.