DFAE vs SPY
Dimensional Emerging Core Equity Market ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, DFAE or SPY?
Each has led over a different period.
SPY has a lower expense ratio. DFAE led over 1Y and 3Y, SPY over 5Y and the full window.
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 | SPY |
|---|---|---|
| Expense Ratio | 0.29% | 0.09%Best |
| AUM | $10.1B | $814.4B |
| Dividend Yield | 1.84% | 1.01% |
| Holdings | 6,482 | 505 |
| YTD Return | +22.34%Best | +12.71% |
| 1Y Return | +35.29%Best | +19.36% |
| 3Y Return (annualized) | +22.82%Best | +21.09% |
| 5Y Return (annualized) | +9.90% | +12.69%Best |
| Volatility (annualized) | 16.1% | 15.0%Best |
| Max Drawdown | -32.2% | -24.5%Best |
| $10,000 over 5 years | $16,032 | $18,173Best |
| Fund Family | Dimensional | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 1, 2020 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Dec 2, 2020 to Sep 8, 2026 (5.8 years).
DFAE 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 5.8 years both funds cover.
DFAE vs SPY Performance
Dimensional Emerging Core Equity Market ETF (DFAE) 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 DFAE returned +35.29% while SPY returned +19.36%. Year to date, DFAE is up 22.34% versus a gain of 12.71% for SPY.
Over three years, DFAE compounded at +22.82% per year against +21.09% for SPY; over five years the annualized figures are +9.90% and +12.69% respectively. Across the full 6-year window we track, SPY has the edge at +15.09% annualized vs +10.63%.
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 15.0% 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 -32.2% for DFAE and -24.5% 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
DFAE charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, DFAE currently yields 1.84% against 1.01% for SPY.
Holdings Overlap
At least 0.4% of SPY'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.
We cannot see either book well enough to say how much of this pair is duplicated.
3 positions in common, counted across the 6,067 positions we hold weights for in DFAE and 503 in SPY, against full books of 6,482 and 505.
You are not choosing between two funds in isolation.
Whichever of DFAE and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAE or SPY?
DFAE has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option, by $20 a year on a $10,000 investment.
Which performed better, DFAE or SPY?
Over the past year DFAE returned +35.29% vs +19.36% for SPY, so DFAE leads on 1-year performance. Over the longest common window we track (6 years), DFAE annualized +10.63% vs +15.09% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAE or SPY?
DFAE has been the more volatile fund at 16.1% annualized versus 15.0% for SPY. Worst drawdown: DFAE -32.2% vs SPY -24.5%.
Should I hold both DFAE and SPY?
DFAE and SPY have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, DFAE or SPY?
DFAE yields 1.84% while SPY yields 1.01%, so DFAE currently pays the higher dividend yield.
Is SPY better than DFAE?
SPY has a lower expense ratio. DFAE led over 1Y and 3Y, SPY over 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.