DFAE vs IVV
Dimensional Emerging Core Equity Market ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. DFAE delivered stronger 1-year returns. DFAE offers more diversification with 6,482 holdings.
Side-by-Side Comparison
| Metric | DFAE | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $9.8B | $907.0B | |
| Dividend Yield | 1.84% | 1.10% | |
| Holdings | 6,482 | 508 | |
| YTD Return | +16.52% | +12.96% | |
| 1Y Return | +30.52% | +20.70% | |
| 3Y Return (annualized) | +21.69% | +22.10% | |
| 5Y Return (annualized) | +9.72% | +13.40% | |
| Volatility (annualized) | 16.1% | 15.1% | |
| Max Drawdown | -32.2% | -56.5% | |
| Fund Family | Dimensional | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2020 | May 15, 2000 |
DFAE vs IVV Performance
Dimensional Emerging Core Equity Market ETF (DFAE) 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 DFAE returned +30.52% while IVV returned +20.70%. Year to date, DFAE is up 16.52% versus a gain of 12.96% for IVV.
Over three years, DFAE compounded at +21.69% per year against +22.10% for IVV; over five years the annualized figures are +9.72% and +13.40% respectively. Across the full 6-year window we track, DFAE has the edge at +9.80% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAE has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -32.2% for DFAE 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFAE charges 0.35% per year while IVV charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, DFAE currently yields 1.84% against 1.10% for IVV.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, DFAE or IVV?
DFAE has an expense ratio of 0.35% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, DFAE or IVV?
Over the past year DFAE returned +30.52% vs +20.70% for IVV, so DFAE leads on 1-year performance. Over the longest common window we track (6 years), DFAE annualized +9.80% vs +7.01% for IVV. Past performance does not guarantee future results.
Which is riskier, DFAE or IVV?
DFAE has been the more volatile fund at 16.1% annualized versus 15.1% for IVV. Worst drawdown: DFAE -32.2% vs IVV -56.5%.
Should I hold both DFAE and IVV?
DFAE and IVV have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAE and IVV?
DFAE and IVV share 2 common holdings with a 0.1% weight overlap. Combined, they hold 6829 unique securities.
Which pays a higher dividend, DFAE or IVV?
DFAE yields 1.84% while IVV yields 1.10%, so DFAE currently pays the higher dividend yield.
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