DFAR vs IVV
Dimensional US Real Estate ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | DFAR | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $1.8B | $865.2B | |
| Dividend Yield | 2.69% | 1.09% | |
| Holdings | 130 | 508 | |
| YTD Return | +14.99% | +13.80% | |
| 1Y Return | +17.79% | +23.01% | |
| 3Y Return (annualized) | +10.04% | +21.77% | |
| 5Y Return (annualized) | - | +13.39% | |
| Volatility (annualized) | 18.4% | 15.1% | |
| Max Drawdown | -32.3% | -56.5% | |
| Fund Family | Dimensional | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Feb 23, 2022 | May 15, 2000 |
DFAR vs IVV Performance
Dimensional US Real Estate ETF (DFAR) is a ETF from Dimensional and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year DFAR returned +17.79% while IVV returned +23.01%. Year to date, DFAR is up 14.99% versus a gain of 13.80% for IVV.
Over three years, DFAR compounded at +10.04% per year against +21.77% for IVV. Across the full 5-year window we track, IVV has the edge at +7.04% annualized vs +3.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFAR has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 15.1% for IVV. 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 -32.3% for DFAR and -56.5% for IVV. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFAR charges 0.19% per year while IVV charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, DFAR currently yields 2.69% against 1.09% for IVV.
Holdings Overlap
DFAR and IVV share 28 holdings out of 601 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFAR or IVV?
DFAR has an expense ratio of 0.19% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, DFAR or IVV?
Over the past year DFAR returned +17.79% vs +23.01% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (5 years), DFAR annualized +3.56% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, DFAR or IVV?
DFAR has been the more volatile fund at 18.4% annualized versus 15.1% for IVV. Worst drawdown: DFAR -32.3% vs IVV -56.5%.
Should I hold both DFAR and IVV?
DFAR and IVV have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFAR and IVV?
DFAR and IVV share 28 common holdings with a 1.8% weight overlap. Combined, they hold 601 unique securities.
Which pays a higher dividend, DFAR or IVV?
DFAR yields 2.69% while IVV yields 1.09%, so DFAR currently pays the higher dividend yield.
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