DFAS vs FESM
Dimensional US Small Cap ETF vs Fidelity Enhanced Small Cap Core ETF
Which is better, DFAS or FESM?
Nearly the same fund. DFAS costs less.
DFAS has a lower expense ratio. FESM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.97. DFAS is less concentrated, with 2.7% of the fund in its ten largest positions against 7.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFAS | FESM |
|---|---|---|
| Expense Ratio | 0.26%Best | 0.28% |
| AUM | $33.7B | $6.7B |
| Dividend Yield | 1.01% | 0.86% |
| Holdings | 3,996 | 1,788 |
| YTD Return | +15.49% | +21.94%Best |
| 1Y Return | +19.24% | +24.83%Best |
| 3Y Return (annualized) | +17.75% | +23.81%Best |
| 5Y Return (annualized) | +6.45% | - |
| Volatility (annualized) | 16.6%Best | 19.4% |
| Max Drawdown | -26.1%Best | -26.9% |
| $10,000 over 3 years | $15,516 | $18,979Best |
| Top 10 Weight | 2.7%Best | 7.1% |
| Fund Family | Dimensional | Fidelity Investments (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Small Cap Blend |
| Inception | Dec 15, 1998 | Nov 20, 2023 |
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Nov 20, 2023 to Nov 11, 2026 (3 years).
DFAS vs FESM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
DFAS vs FESM Performance
Dimensional US Small Cap ETF (DFAS) is an ETF from Dimensional and Fidelity Enhanced Small Cap Core ETF (FESM) is an ETF from Fidelity Investments (US). Over the past year DFAS returned +19.24% while FESM returned +24.83%. Year to date, DFAS is up 15.49% versus a gain of 21.94% for FESM.
Over three years, DFAS compounded at +17.75% per year against +23.81% for FESM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.4% compared with 16.6% for DFAS. 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 -26.1% for DFAS and -26.9% for FESM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DFAS charges 0.26% per year while FESM charges 0.28%. On a $10,000 position that is $26 vs $28 annually, a gap of $2 per year that compounds over a long holding period. On income, DFAS currently yields 1.01% against 0.86% for FESM.
Holdings Overlap
31.2% of DFAS's money is in holdings FESM also owns. 83.5% of FESM's money is in holdings DFAS also owns.
Most of FESM is already inside DFAS. Owning both mostly buys the same companies twice.
666 positions in common, counted across the 2,093 positions we hold weights for in DFAS and 846 in FESM, against full books of 3,996 and 1,788.
What only one of them owns
Our book lists 110 positions for FESM that do not appear in our book for DFAS (11.6% of the fund), and 968 for DFAS that do not appear in FESM (66.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFAS | Weight in FESM | Difference |
|---|---|---|---|
| OPCHOption Care Health Inc | 0.14% | 0.89% | 0.75% |
| OSCROscar Health, Inc. | 0.17% | 0.81% | 0.64% |
| CMCCommercial Metals Co | 0.17% | 0.77% | 0.60% |
| PLXSPlexus Corp | 0.16% | 0.68% | 0.52% |
| HQYHealthequity Inc | 0.17% | 0.65% | 0.48% |
| ENSEnersys | 0.15% | 0.64% | 0.49% |
| IBPInstalled Building Products | 0.12% | 0.64% | 0.52% |
| BTSGBrightspring Health | 0.16% | 0.60% | 0.44% |
| FLRFluor Corp | 0.15% | 0.60% | 0.45% |
| BCPCBalchem Corp | 0.13% | 0.60% | 0.47% |
83.5% of FESM is already inside DFAS.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFAS or FESM?
DFAS has an expense ratio of 0.26% while FESM charges 0.28%. DFAS is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, DFAS or FESM?
Over the past year DFAS returned +19.24% vs +24.83% for FESM, so FESM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFAS or FESM?
FESM has been the more volatile fund at 19.4% annualized versus 16.6% for DFAS. Worst drawdown: DFAS -26.1% vs FESM -26.9%.
Should I hold both DFAS and FESM?
DFAS and FESM have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between DFAS and FESM?
83.5% of FESM's money is in holdings DFAS also owns. 83.5% of FESM's is in holdings DFAS also owns. They hold 666 positions in common, counted across the 2,093 positions we hold weights for in DFAS and 846 in FESM.
Which pays a higher dividend, DFAS or FESM?
DFAS yields 1.01% while FESM yields 0.86%, so DFAS currently pays the higher dividend yield.
Is FESM better than DFAS?
DFAS has a lower expense ratio. FESM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.97. DFAS is less concentrated, with 2.7% of the fund in its ten largest positions against 7.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.