DFAC vs IVV
Dimensional US Core Equity 2 ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. DFAC delivered stronger 1-year returns. DFAC offers more diversification with 2,554 holdings.
Side-by-Side Comparison
| Metric | DFAC | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.03% | |
| AUM | $49.4B | $886.7B | |
| Dividend Yield | 0.91% | 1.10% | |
| Holdings | 2,554 | 508 | |
| YTD Return | +14.62% | +12.92% | |
| 1Y Return | +22.13% | +21.22% | |
| 3Y Return (annualized) | +19.14% | +20.95% | |
| 5Y Return (annualized) | +11.67% | +12.76% | |
| Volatility (annualized) | 15.8% | 15.1% | |
| Max Drawdown | -23.1% | -56.5% | |
| Fund Family | Dimensional | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Oct 4, 2007 | May 15, 2000 |
DFAC vs IVV Performance
Dimensional US Core Equity 2 ETF (DFAC) is a ETF from Dimensional and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year DFAC returned +22.13% while IVV returned +21.22%. Year to date, DFAC is up 14.62% versus a gain of 12.92% for IVV.
Over three years, DFAC compounded at +19.14% per year against +20.95% for IVV; over five years the annualized figures are +11.67% and +12.76% respectively. Across the full 5-year window we track, DFAC has the edge at +12.06% annualized vs +7.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAC has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 15.1% for IVV. 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 -23.1% for DFAC and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DFAC charges 0.17% per year while IVV charges 0.03%. On a $10,000 position that is $17 vs $3 annually, a gap of $14 per year that compounds over a long holding period. On income, DFAC currently yields 0.91% against 1.10% for IVV.
Holdings Overlap
DFAC and IVV share 465 holdings out of 2551 unique holdings combined, representing a 66.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, DFAC or IVV?
DFAC has an expense ratio of 0.17% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, DFAC or IVV?
Over the past year DFAC returned +22.13% vs +21.22% for IVV, so DFAC leads on 1-year performance. Over the longest common window we track (5 years), DFAC annualized +12.06% vs +7.00% for IVV. Past performance does not guarantee future results.
Which is riskier, DFAC or IVV?
DFAC has been the more volatile fund at 15.8% annualized versus 15.1% for IVV. Worst drawdown: DFAC -23.1% vs IVV -56.5%.
Should I hold both DFAC and IVV?
DFAC and IVV have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between DFAC and IVV?
DFAC and IVV share 465 common holdings with a 66.7% weight overlap. Combined, they hold 2551 unique securities.
Which pays a higher dividend, DFAC or IVV?
DFAC yields 0.91% while IVV yields 1.10%, so IVV currently pays the higher dividend yield.
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