DFEM vs IEMG
Dimensional Emerging Markets Core Equity 2 ETF vs iShares Core MSCI Emerging Markets ETF
Which is better, DFEM or IEMG?
Nearly the same fund. IEMG costs less.
IEMG has a lower expense ratio. DFEM led over 1Y, 3Y 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 | DFEM | IEMG |
|---|---|---|
| Expense Ratio | 0.39% | 0.09%Best |
| AUM | $9.4B | $157.4B |
| Dividend Yield | 1.96% | 2.21% |
| Holdings | 6,512 | 2,869 |
| YTD Return | +15.30%Best | +14.08% |
| 1Y Return | +21.18%Best | +20.28% |
| 3Y Return (annualized) | +20.86%Best | +20.82% |
| 5Y Return (annualized) | - | +6.96% |
| Volatility (annualized) | 17.4%Tie | 17.4%Tie |
| Max Drawdown | -20.8% | -20.2%Best |
| $10,000 over 4.5 years | $17,147Best | $17,017 |
| Fund Family | Dimensional | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 26, 2022 | Oct 18, 2012 |
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 15, 2026 (4.5 years).
DFEM 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 4.5 years both funds cover.
DFEM vs IEMG Performance
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) 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 DFEM returned +21.18% while IEMG returned +20.28%. Year to date, DFEM is up 15.30% versus a gain of 14.08% for IEMG.
Over three years, DFEM compounded at +20.86% per year against +20.82% for IEMG.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEM and IEMG have been equally volatile, both at 17.4% annualized.
The deepest peak-to-trough decline in our data was -20.8% for DFEM and -20.2% 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
DFEM charges 0.39% per year while IEMG charges 0.09%. On a $10,000 position that is $39 vs $9 annually, a gap of $30 per year that compounds over a long holding period. On income, DFEM currently yields 1.96% against 2.21% for IEMG.
Holdings Overlap
At least 74.8% of IEMG's money is in holdings DFEM also owns.
Stated as a floor: for DFEM, our book for it covers 83.3% 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 DFEM. Owning both mostly buys the same companies twice.
1,596 positions in common, counted across the 6,649 positions we hold weights for in DFEM and 2,792 in IEMG, against full books of 6,512 and 2,869.
Top Shared Holdings
| Stock | Weight in DFEM | Weight in IEMG | Difference |
|---|---|---|---|
| 2330:TWTsmc | 0.09% | 13.81% | 13.72% |
| 005930:KRSamsung Electronics Co Ltd | 4.29% | 6.77% | 2.48% |
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 4.47% | 5.31% | 0.84% |
| 0700:KYTencent Holdings Ltd Ordinary Shares | 1.69% | 2.40% | 0.71% |
| 9988:HKAlibaba Group Holding Limited Ordinary Shares | 0.71% | 1.62% | 0.91% |
| 2454:TWMediaTek Inc ORD TWD10 | 0.51% | 1.61% | 1.10% |
| 2308:TWDelta Electronics Inc | 0.34% | 0.83% | 0.49% |
| 2317:TWHon Hai Precision Industry Co Ltd Ord Twd10 | 0.45% | 0.70% | 0.25% |
| 009150:KRSamsung Electro-Mechanics Co L | 0.44% | 0.46% | 0.02% |
| 3711:TWASE Technology Holding Co., Ltd. | 0.36% | 0.53% | 0.17% |
74.8% of IEMG is already inside DFEM.
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, DFEM or IEMG?
DFEM has an expense ratio of 0.39% while IEMG charges 0.09%. IEMG is the cheaper option, by $30 a year on a $10,000 investment.
Which performed better, DFEM or IEMG?
Over the past year DFEM returned +21.18% vs +20.28% for IEMG, so DFEM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFEM or IEMG?
DFEM and IEMG have been equally volatile, both at 17.4% annualized. Worst drawdown: DFEM -20.8% vs IEMG -20.2%.
Should I hold both DFEM and IEMG?
DFEM 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 DFEM and IEMG?
At least 74.8% of IEMG's money is in holdings DFEM also owns. Our book for DFEM is partial, so the real figure is this or higher. They hold 1,596 positions in common, counted across the 6,649 positions we hold weights for in DFEM and 2,792 in IEMG.
Which pays a higher dividend, DFEM or IEMG?
DFEM yields 1.96% while IEMG yields 2.21%, so IEMG currently pays the higher dividend yield.
Is IEMG better than DFEM?
IEMG has a lower expense ratio. DFEM led over 1Y, 3Y 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.