DFCF vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. DFCF offers more diversification with 1491 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: DFCF

Side-by-Side Comparison

MetricDFCFSPYWinner
Expense Ratio0.17%0.09%
AUM$10.9B$789.1B
Dividend Yield4.34%1.01%
Holdings1,618505
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 FamilyDimensionalState Street Investment Management
CategoryFixed IncomeEquity
InceptionNov 15, 2021Jan 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

0.0%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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