DFEM vs IVV
Dimensional Emerging Markets Core Equity 2 ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. DFEM delivered stronger 1-year returns. DFEM offers more diversification with 6316 holdings.
Side-by-Side Comparison
| Metric | DFEM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $8.9B | $865.2B | |
| Dividend Yield | 1.85% | 1.09% | |
| Holdings | 6,512 | 508 | |
| YTD Return | +16.40% | +13.80% | |
| 1Y Return | +31.26% | +23.01% | |
| 3Y Return (annualized) | +20.46% | +21.77% | |
| 5Y Return (annualized) | - | +13.39% | |
| Volatility (annualized) | 17.4% | 15.1% | |
| Max Drawdown | -20.8% | -56.5% | |
| Fund Family | Dimensional | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2022 | May 15, 2000 |
DFEM vs IVV Performance
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is a ETF from Dimensional and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year DFEM returned +31.26% while IVV returned +23.01%. Year to date, DFEM is up 16.40% versus a gain of 13.80% for IVV.
Over three years, DFEM compounded at +20.46% per year against +21.77% for IVV. Across the full 4-year window we track, DFEM has the edge at +13.55% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEM has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 15.1% for IVV. 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 -20.8% for DFEM and -56.5% for IVV. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFEM charges 0.39% per year while IVV charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, DFEM currently yields 1.85% against 1.09% for IVV.
Holdings Overlap
DFEM and IVV share 1 holdings out of 6820 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DFEM | Weight in IVV | Difference |
|---|---|---|---|
| HAL | 0.06% | 0.04% | 0.02% |
Frequently Asked Questions
Which is cheaper, DFEM or IVV?
DFEM has an expense ratio of 0.39% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, DFEM or IVV?
Over the past year DFEM returned +31.26% vs +23.01% for IVV, so DFEM leads on 1-year performance. Over the longest common window we track (4 years), DFEM annualized +13.55% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, DFEM or IVV?
DFEM has been the more volatile fund at 17.4% annualized versus 15.1% for IVV. Worst drawdown: DFEM -20.8% vs IVV -56.5%.
Should I hold both DFEM and IVV?
DFEM and IVV have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFEM and IVV?
DFEM and IVV share 1 common holdings with a 0.0% weight overlap. Combined, they hold 6820 unique securities.
Which pays a higher dividend, DFEM or IVV?
DFEM yields 1.85% while IVV yields 1.09%, so DFEM currently pays the higher dividend yield.
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