DFCA vs SPY
DFCA vs SPY
Dimensional California Municipal Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | DFCA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.09% | |
| AUM | $707M | $789.1B | |
| Dividend Yield | 2.73% | 1.01% | |
| Holdings | 434 | 505 | |
| YTD Return | +0.67% | +13.79% | |
| 1Y Return | +3.71% | +23.66% | |
| 3Y Return (annualized) | +2.75% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 3.2% | 15.3% | |
| Max Drawdown | -3.3% | -56.5% | |
| Fund Family | Dimensional | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 2023 | Jan 22, 1993 |
DFCA vs SPY Performance
Dimensional California Municipal Bond ETF (DFCA) 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 DFCA returned +3.71% while SPY returned +23.66%. Year to date, DFCA is up 0.67% versus a gain of 13.79% for SPY.
Over three years, DFCA compounded at +2.75% per year against +21.40% for SPY. Across the full 3-year window we track, SPY has the edge at +8.85% annualized vs +2.51%. 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 3.2% for DFCA. 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 -3.3% for DFCA 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFCA charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, DFCA currently yields 2.73% against 1.01% for SPY.
Holdings Overlap
DFCA and SPY share 0 holdings out of 591 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFCA or SPY?
DFCA has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, DFCA or SPY?
Over the past year DFCA returned +3.71% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), DFCA annualized +2.51% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, DFCA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.2% for DFCA. Worst drawdown: DFCA -3.3% vs SPY -56.5%.
Should I hold both DFCA and SPY?
DFCA and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFCA and SPY?
DFCA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 591 unique securities.
Which pays a higher dividend, DFCA or SPY?
DFCA yields 2.73% while SPY yields 1.01%, so DFCA currently pays the higher dividend yield.
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