DFAE vs IEMG
Dimensional Emerging Core Equity Market ETF vs iShares Core MSCI Emerging Markets ETF
Which is better, DFAE or IEMG?
Nearly the same fund. IEMG costs less.
IEMG has a lower expense ratio. DFAE led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99.
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 | IEMG |
|---|---|---|
| Expense Ratio | 0.35% | 0.09%Best |
| AUM | $9.9B | $157.4B |
| Dividend Yield | 1.87% | 2.21% |
| Holdings | 6,482 | 2,869 |
| YTD Return | +15.84%Best | +14.89% |
| 1Y Return | +24.29%Best | +23.17% |
| 3Y Return (annualized) | +21.73%Best | +21.12% |
| 5Y Return (annualized) | +9.09%Best | +7.38% |
| Volatility (annualized) | 16.1%Best | 16.2% |
| Max Drawdown | -32.2%Best | -37.1% |
| $10,000 over 5 years | $15,450Best | $14,276 |
| Fund Family | Dimensional | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 1, 2020 | Oct 18, 2012 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Dec 2, 2020 to Oct 14, 2026 (5.9 years).
DFAE vs IEMG 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 5.9 years both funds cover.
DFAE vs IEMG Performance
Dimensional Emerging Core Equity Market ETF (DFAE) is an ETF from Dimensional and iShares Core MSCI Emerging Markets ETF (IEMG) is an ETF from iShares by BlackRock (US). Over the past year DFAE returned +24.29% while IEMG returned +23.17%. Year to date, DFAE is up 15.84% versus a gain of 14.89% for IEMG.
Over three years, DFAE compounded at +21.73% per year against +21.12% for IEMG; over five years the annualized figures are +9.09% and +7.38% respectively. Across the full 6-year window we track, DFAE has the edge at +9.42% annualized vs +7.30%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEMG has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 16.1% 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 -32.2% for DFAE and -37.1% for IEMG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. 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 IEMG charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, DFAE currently yields 1.87% against 2.21% for IEMG.
Holdings Overlap
At least 74.1% of IEMG's money is in holdings DFAE also owns.
Stated as a floor: for DFAE, our book for it covers 93.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of IEMG is already inside DFAE. Owning both mostly buys the same companies twice.
1,593 positions in common, counted across the 6,154 positions we hold weights for in DFAE and 2,792 in IEMG, against full books of 6,482 and 2,869.
Top Shared Holdings
| Stock | Weight in DFAE | Weight in IEMG | Difference |
|---|---|---|---|
| 2330:TWTaiwan Semiconductor Manufacturing Co Ltd | 12.96% | 13.81% | 0.85% |
| 005930:KRSamsung Electronics Co Ltd | 5.31% | 6.77% | 1.46% |
| 000660:KRSk Hynix | 5.09% | 5.31% | 0.22% |
| 0700:KYTencent Holdings Ltd Ordinary Shares | 2.19% | 2.40% | 0.21% |
| 2454:TWMediatek Inc Common Stock TWD10.0 | 1.18% | 1.61% | 0.43% |
| 9988:HKAlibaba Group Holding Limited Ordinary Shares | 1.03% | 1.62% | 0.59% |
| 2317:TWHon Hai Precision Industry Co., Ltd. | 0.76% | 0.70% | 0.06% |
| 2308:TWDelta Electronics Inc | 0.59% | 0.83% | 0.24% |
| 1398:HKIndustrial And Commercial Bank Of China Ltd Class H | 0.44% | 0.45% | 0.01% |
| 009150:KRSamsung Electro-Mechanics Co Ltd | 0.40% | 0.46% | 0.06% |
74.1% of IEMG is already inside DFAE.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAE or IEMG?
DFAE has an expense ratio of 0.35% while IEMG charges 0.09%. IEMG is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, DFAE or IEMG?
Over the past year DFAE returned +24.29% vs +23.17% for IEMG, so DFAE leads on 1-year performance. Over the longest common window we track (6 years), DFAE annualized +9.42% vs +7.30% for IEMG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAE or IEMG?
IEMG has been the more volatile fund at 16.2% annualized versus 16.1% for DFAE. Worst drawdown: DFAE -32.2% vs IEMG -37.1%.
Should I hold both DFAE and IEMG?
DFAE and IEMG have a monthly-return correlation of 0.99, 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.
What is the holdings overlap between DFAE and IEMG?
At least 74.1% of IEMG's money is in holdings DFAE also owns. Our book for DFAE is partial, so the real figure is this or higher. They hold 1,593 positions in common, counted across the 6,154 positions we hold weights for in DFAE and 2,792 in IEMG.
Which pays a higher dividend, DFAE or IEMG?
DFAE yields 1.87% while IEMG yields 2.21%, so IEMG currently pays the higher dividend yield.
Is IEMG better than DFAE?
IEMG has a lower expense ratio. DFAE led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.