DFAI vs VOO
Dimensional International Core Equity Market ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. DFAI delivered stronger 1-year returns. DFAI offers more diversification with 3759 holdings.
Side-by-Side Comparison
| Metric | DFAI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $17.2B | $979.0B | |
| Dividend Yield | 2.35% | 1.09% | |
| Holdings | 3,919 | 509 | |
| YTD Return | +13.62% | +13.44% | |
| 1Y Return | +26.16% | +22.62% | |
| 3Y Return (annualized) | +19.69% | +21.47% | |
| 5Y Return (annualized) | +10.46% | +13.27% | |
| Volatility (annualized) | 14.5% | 14.1% | |
| Max Drawdown | -27.4% | -34.3% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 17, 2020 | Sep 7, 2010 |
DFAI vs VOO Performance
Dimensional International Core Equity Market ETF (DFAI) is a ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DFAI returned +26.16% while VOO returned +22.62%. Year to date, DFAI is up 13.62% versus a gain of 13.44% for VOO.
Over three years, DFAI compounded at +19.69% per year against +21.47% for VOO; over five years the annualized figures are +10.46% and +13.27% respectively. Across the full 6-year window we track, VOO has the edge at +13.55% annualized vs +12.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAI has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 14.1% for VOO. 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, DFAI currently yields 2.35% against 1.09% for VOO.
Holdings Overlap
DFAI and VOO share 5 holdings out of 4259 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 VOO?
DFAI has an expense ratio of 0.18% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, DFAI or VOO?
Over the past year DFAI returned +26.16% vs +22.62% for VOO, so DFAI leads on 1-year performance. Over the longest common window we track (6 years), DFAI annualized +12.78% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, DFAI or VOO?
DFAI has been the more volatile fund at 14.5% annualized versus 14.1% for VOO. Worst drawdown: DFAI -27.4% vs VOO -34.3%.
Should I hold both DFAI and VOO?
DFAI and VOO 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 VOO?
DFAI and VOO share 5 common holdings with a 0.1% weight overlap. Combined, they hold 4259 unique securities.
Which pays a higher dividend, DFAI or VOO?
DFAI yields 2.35% while VOO yields 1.09%, so DFAI currently pays the higher dividend yield.
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