DFAI vs SPY
Dimensional International Core Equity Market ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. DFAI delivered stronger 1-year returns. DFAI offers more diversification with 3759 holdings.
Side-by-Side Comparison
| Metric | DFAI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $17.2B | $789.1B | |
| Dividend Yield | 2.35% | 1.01% | |
| Holdings | 3,919 | 505 | |
| YTD Return | +13.62% | +13.39% | |
| 1Y Return | +26.16% | +22.52% | |
| 3Y Return (annualized) | +19.69% | +21.36% | |
| 5Y Return (annualized) | +10.46% | +13.19% | |
| Volatility (annualized) | 14.5% | 15.3% | |
| Max Drawdown | -27.4% | -56.5% | |
| Fund Family | Dimensional | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 17, 2020 | Jan 22, 1993 |
DFAI vs SPY Performance
Dimensional International Core Equity Market ETF (DFAI) is a ETF from Dimensional and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DFAI returned +26.16% while SPY returned +22.52%. Year to date, DFAI is up 13.62% versus a gain of 13.39% for SPY.
Over three years, DFAI compounded at +19.69% per year against +21.36% for SPY; over five years the annualized figures are +10.46% and +13.19% respectively. Across the full 6-year window we track, DFAI has the edge at +12.78% annualized vs +8.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.5% for DFAI. 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 -27.4% for DFAI and -56.5% for SPY. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAI charges 0.18% per year while SPY charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, DFAI currently yields 2.35% against 1.01% for SPY.
Holdings Overlap
DFAI and SPY share 5 holdings out of 4257 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, DFAI or SPY?
DFAI has an expense ratio of 0.18% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, DFAI or SPY?
Over the past year DFAI returned +26.16% vs +22.52% for SPY, so DFAI leads on 1-year performance. Over the longest common window we track (6 years), DFAI annualized +12.78% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, DFAI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.5% for DFAI. Worst drawdown: DFAI -27.4% vs SPY -56.5%.
Should I hold both DFAI and SPY?
DFAI and SPY have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAI and SPY?
DFAI and SPY share 5 common holdings with a 0.1% weight overlap. Combined, they hold 4257 unique securities.
Which pays a higher dividend, DFAI or SPY?
DFAI yields 2.35% while SPY yields 1.01%, so DFAI currently pays the higher dividend yield.
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