DFAE vs VXUS
Dimensional Emerging Core Equity Market ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. DFAE delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | DFAE | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.05% | |
| AUM | $9.8B | $158.1B | |
| Dividend Yield | 1.84% | 2.59% | |
| Holdings | 6,482 | 8,747 | |
| YTD Return | +16.52% | +13.56% | |
| 1Y Return | +30.52% | +24.30% | |
| 3Y Return (annualized) | +21.69% | +20.24% | |
| 5Y Return (annualized) | +9.72% | +9.37% | |
| Volatility (annualized) | 16.1% | 15.1% | |
| Max Drawdown | -32.2% | -39.9% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2020 | Jan 26, 2011 |
DFAE vs VXUS Performance
Dimensional Emerging Core Equity Market ETF (DFAE) is a ETF from Dimensional and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year DFAE returned +30.52% while VXUS returned +24.30%. Year to date, DFAE is up 16.52% versus a gain of 13.56% for VXUS.
Over three years, DFAE compounded at +21.69% per year against +20.24% for VXUS; over five years the annualized figures are +9.72% and +9.37% respectively. Across the full 6-year window we track, DFAE has the edge at +9.80% annualized vs +4.79%. 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 VXUS. 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 -39.9% for VXUS. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAE charges 0.35% per year while VXUS charges 0.05%. On a $10,000 position that is $35 vs $5 annually, a gap of $30 per year that compounds over a long holding period. On income, DFAE currently yields 1.84% against 2.59% for VXUS.
Holdings Overlap
DFAE and VXUS share 3102 holdings out of 11093 unique holdings combined, representing a 19.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFAE or VXUS?
DFAE has an expense ratio of 0.35% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, DFAE or VXUS?
Over the past year DFAE returned +30.52% vs +24.30% for VXUS, so DFAE leads on 1-year performance. Over the longest common window we track (6 years), DFAE annualized +9.80% vs +4.79% for VXUS. Past performance does not guarantee future results.
Which is riskier, DFAE or VXUS?
DFAE has been the more volatile fund at 16.1% annualized versus 15.1% for VXUS. Worst drawdown: DFAE -32.2% vs VXUS -39.9%.
Should I hold both DFAE and VXUS?
DFAE and VXUS have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAE and VXUS?
DFAE and VXUS share 3102 common holdings with a 19.0% weight overlap. Combined, they hold 11093 unique securities.
Which pays a higher dividend, DFAE or VXUS?
DFAE yields 1.84% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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