DFCF vs SPY
DFCF vs SPY
Dimensional Core Fixed Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. DFCF offers more diversification with 1491 holdings.
Side-by-Side Comparison
| Metric | DFCF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.09% | |
| AUM | $10.9B | $789.1B | |
| Dividend Yield | 4.34% | 1.01% | |
| Holdings | 1,618 | 505 | |
| YTD Return | +0.21% | +13.79% | |
| 1Y Return | +2.74% | +23.66% | |
| 3Y Return (annualized) | +4.80% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 6.9% | 15.3% | |
| Max Drawdown | -19.6% | -56.5% | |
| Fund Family | Dimensional | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2021 | Jan 22, 1993 |
DFCF vs SPY Performance
Dimensional Core Fixed Income ETF (DFCF) 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 DFCF returned +2.74% while SPY returned +23.66%. Year to date, DFCF is up 0.21% versus a gain of 13.79% for SPY.
Over three years, DFCF compounded at +4.80% per year against +21.40% for SPY. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs +0.07%. 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 6.9% for DFCF. 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 -19.6% for DFCF 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
DFCF charges 0.17% per year while SPY charges 0.09%. On a $10,000 position that is $17 vs $9 annually, a gap of $8 per year that compounds over a long holding period. On income, DFCF currently yields 4.34% against 1.01% for SPY.
Holdings Overlap
DFCF and SPY share 0 holdings out of 1994 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, DFCF or SPY?
DFCF has an expense ratio of 0.17% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, DFCF or SPY?
Over the past year DFCF returned +2.74% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), DFCF annualized +0.07% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, DFCF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.9% for DFCF. Worst drawdown: DFCF -19.6% vs SPY -56.5%.
Should I hold both DFCF and SPY?
DFCF 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 DFCF and SPY?
DFCF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1994 unique securities.
Which pays a higher dividend, DFCF or SPY?
DFCF yields 4.34% while SPY yields 1.01%, so DFCF currently pays the higher dividend yield.
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