DFEM vs VOO
Dimensional Emerging Markets Core Equity 2 ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. DFEM delivered stronger 1-year returns. DFEM offers more diversification with 6316 holdings.
Side-by-Side Comparison
| Metric | DFEM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $8.9B | $979.0B | |
| Dividend Yield | 1.85% | 1.09% | |
| Holdings | 6,512 | 509 | |
| YTD Return | +16.85% | +13.80% | |
| 1Y Return | +31.38% | +23.71% | |
| 3Y Return (annualized) | +20.23% | +21.50% | |
| 5Y Return (annualized) | - | +13.44% | |
| Volatility (annualized) | 17.4% | 14.1% | |
| Max Drawdown | -20.8% | -34.3% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2022 | Sep 7, 2010 |
DFEM vs VOO Performance
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is a ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DFEM returned +31.38% while VOO returned +23.71%. Year to date, DFEM is up 16.85% versus a gain of 13.80% for VOO.
Over three years, DFEM compounded at +20.23% per year against +21.50% for VOO. Across the full 4-year window we track, DFEM has the edge at +13.68% annualized vs +13.58%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFEM charges 0.39% per year while VOO 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 VOO.
Holdings Overlap
DFEM and VOO 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 VOO | Difference |
|---|---|---|---|
| HAL | 0.06% | 0.04% | 0.02% |
Frequently Asked Questions
Which is cheaper, DFEM or VOO?
DFEM has an expense ratio of 0.39% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, DFEM or VOO?
Over the past year DFEM returned +31.38% vs +23.71% for VOO, so DFEM leads on 1-year performance. Over the longest common window we track (4 years), DFEM annualized +13.68% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, DFEM or VOO?
DFEM has been the more volatile fund at 17.4% annualized versus 14.1% for VOO. Worst drawdown: DFEM -20.8% vs VOO -34.3%.
Should I hold both DFEM and VOO?
DFEM and VOO have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFEM and VOO?
DFEM and VOO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 6820 unique securities.
Which pays a higher dividend, DFEM or VOO?
DFEM yields 1.85% while VOO yields 1.09%, so DFEM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.