DFAX vs SPY

Quick Verdict

SPY has a lower expense ratio. DFAX delivered stronger 1-year returns. DFAX offers more diversification with 10131 holdings.

Lower Fees: SPYHigher Returns: DFAXMore Diversified: DFAX

Side-by-Side Comparison

MetricDFAXSPYWinner
Expense Ratio0.28%0.09%
AUM$11.9B$789.1B
Dividend Yield2.34%1.01%
Holdings10,538505
YTD Return+15.00%+13.39%
1Y Return+28.59%+22.52%
3Y Return (annualized)+20.76%+21.36%
5Y Return (annualized)+10.16%+13.19%
Volatility (annualized)15.3%15.3%
Max Drawdown-28.1%-56.5%
Fund FamilyDimensionalState Street Investment Management
CategoryEquityEquity
InceptionMar 6, 2008Jan 22, 1993

DFAX vs SPY Performance

Dimensional World ex US Core Equity 2 ETF (DFAX) 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 DFAX returned +28.59% while SPY returned +22.52%. Year to date, DFAX is up 15.00% versus a gain of 13.39% for SPY.

Over three years, DFAX compounded at +20.76% per year against +21.36% for SPY; over five years the annualized figures are +10.16% and +13.19% respectively. Across the full 5-year window we track, DFAX has the edge at +10.16% annualized vs +8.84%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DFAX has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.3% for SPY. 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 -28.1% for DFAX 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

DFAX charges 0.28% per year while SPY charges 0.09%. On a $10,000 position that is $28 vs $9 annually, a gap of $19 per year that compounds over a long holding period. On income, DFAX currently yields 2.34% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

DFAX and SPY share 6 holdings out of 10628 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DFAXWeight in SPYDifference
ORCL0.00%0.38%0.38%
UNP0.00%0.26%0.26%
BG0.09%0.02%0.07%
IPProProPro
KRProProPro
PNRProProPro
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Frequently Asked Questions

Which is cheaper, DFAX or SPY?

DFAX has an expense ratio of 0.28% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $19 per year of difference.

Which performed better, DFAX or SPY?

Over the past year DFAX returned +28.59% vs +22.52% for SPY, so DFAX leads on 1-year performance. Over the longest common window we track (5 years), DFAX annualized +10.16% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, DFAX or SPY?

DFAX has been the more volatile fund at 15.3% annualized versus 15.3% for SPY. Worst drawdown: DFAX -28.1% vs SPY -56.5%.

Should I hold both DFAX and SPY?

DFAX 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 DFAX and SPY?

DFAX and SPY share 6 common holdings with a 0.1% weight overlap. Combined, they hold 10628 unique securities.

Which pays a higher dividend, DFAX or SPY?

DFAX yields 2.34% while SPY yields 1.01%, so DFAX currently pays the higher dividend yield.

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