DFAE vs VTI
Dimensional Emerging Core Equity Market ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI 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 | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $9.8B | $666.9B | |
| Dividend Yield | 1.84% | 1.07% | |
| Holdings | 6,482 | 3,543 | |
| YTD Return | +16.52% | +13.38% | |
| 1Y Return | +30.52% | +21.12% | |
| 3Y Return (annualized) | +21.69% | +21.85% | |
| 5Y Return (annualized) | +9.72% | +12.44% | |
| Volatility (annualized) | 16.1% | 15.3% | |
| Max Drawdown | -32.2% | -56.6% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2020 | May 24, 2001 |
DFAE vs VTI Performance
Dimensional Emerging Core Equity Market ETF (DFAE) is a ETF from Dimensional and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year DFAE returned +30.52% while VTI returned +21.12%. Year to date, DFAE is up 16.52% versus a gain of 13.38% for VTI.
Over three years, DFAE compounded at +21.69% per year against +21.85% for VTI; over five years the annualized figures are +9.72% and +12.44% respectively. Across the full 6-year window we track, DFAE has the edge at +9.80% annualized vs +8.10%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.
Holdings Overlap
DFAE and VTI share 9 holdings out of 9104 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFAE or VTI?
DFAE has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, DFAE or VTI?
Over the past year DFAE returned +30.52% vs +21.12% for VTI, so DFAE leads on 1-year performance. Over the longest common window we track (6 years), DFAE annualized +9.80% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, DFAE or VTI?
DFAE has been the more volatile fund at 16.1% annualized versus 15.3% for VTI. Worst drawdown: DFAE -32.2% vs VTI -56.6%.
Should I hold both DFAE and VTI?
DFAE and VTI 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 VTI?
DFAE and VTI share 9 common holdings with a 0.1% weight overlap. Combined, they hold 9104 unique securities.
Which pays a higher dividend, DFAE or VTI?
DFAE yields 1.84% while VTI yields 1.07%, so DFAE currently pays the higher dividend yield.
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