DFAR vs SPY
Dimensional US Real Estate ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, DFAR or SPY?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 50.2%.
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 | DFAR | SPY |
|---|---|---|
| Expense Ratio | 0.19% | 0.09%Best |
| AUM | $8.2B | $823.2B |
| Dividend Yield | 3.59% | 0.99% |
| Holdings | 242 | 1,515 |
| YTD Return | +7.13% | +13.53%Best |
| 1Y Return | +6.57% | +17.47%Best |
| 3Y Return (annualized) | +10.06% | +22.36%Best |
| 5Y Return (annualized) | - | +13.21% |
| Volatility (annualized) | 18.3% | 15.5%Best |
| Max Drawdown | -32.3% | -22.1%Best |
| $10,000 over 4.6 years | $10,880 | $19,050Best |
| Top 10 Weight | 50.2% | 38.2%Best |
| Fund Family | Dimensional | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Feb 23, 2022 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 24, 2022 to Oct 14, 2026 (4.6 years).
DFAR vs SPY 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 4.6 years both funds cover.
DFAR vs SPY Performance
Dimensional US Real Estate ETF (DFAR) is an ETF from Dimensional and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year DFAR returned +6.57% while SPY returned +17.47%. Year to date, DFAR is up 7.13% versus a gain of 13.53% for SPY.
Over three years, DFAR compounded at +10.06% per year against +22.36% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAR has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.5% for SPY. 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 -32.3% for DFAR and -22.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAR charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, DFAR currently yields 3.59% against 0.99% for SPY.
Holdings Overlap
72.5% of DFAR's money is in holdings SPY also owns. 1.6% of SPY's money is in holdings DFAR also owns.
Most of DFAR is already inside SPY. Owning both mostly buys the same companies twice.
27 positions in common, counted across the 120 positions we hold weights for in DFAR and 504 in SPY, against full books of 242 and 1,515.
What only one of them owns
Our book lists 469 positions for SPY that do not appear in our book for DFAR (97.4% of the fund), and 90 for DFAR that do not appear in SPY (27.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFAR | Weight in SPY | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 8.29% | 0.25% | 8.04% |
| PLDPrologis Inc | 6.96% | 0.19% | 6.77% |
| EQIXEquinix Inc. Real Estate Investment Trust | 5.61% | 0.15% | 5.46% |
| SPGSimon Property Group Inc | 4.77% | 0.10% | 4.67% |
| DLRDigital Realty Trust Inc. | 4.69% | 0.09% | 4.60% |
| AMTAmerican Tower Corporation | 4.59% | 0.13% | 4.46% |
| ORealty Income Corp. | 4.30% | 0.08% | 4.22% |
| PSAPublic Storage | 3.90% | 0.07% | 3.83% |
| EQRVivmark Residential | 3.59% | 0.07% | 3.52% |
| VTRVentas Inc . | 3.47% | 0.07% | 3.40% |
72.5% of DFAR is already inside SPY.
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, DFAR or SPY?
DFAR has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, DFAR or SPY?
Over the past year DFAR returned +6.57% vs +17.47% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAR or SPY?
DFAR has been the more volatile fund at 18.3% annualized versus 15.5% for SPY. Worst drawdown: DFAR -32.3% vs SPY -22.1%.
Should I hold both DFAR and SPY?
DFAR and SPY have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DFAR and SPY?
72.5% of DFAR's money is in holdings SPY also owns. 1.6% of SPY's is in holdings DFAR also owns. They hold 27 positions in common, counted across the 120 positions we hold weights for in DFAR and 504 in SPY.
Which pays a higher dividend, DFAR or SPY?
DFAR yields 3.59% while SPY yields 0.99%, so DFAR currently pays the higher dividend yield.
Is SPY better than DFAR?
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 50.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.