DFEM vs VXUS
Dimensional Emerging Markets Core Equity 2 ETF vs Vanguard Total International Stock ETF
Which is better, DFEM or VXUS?
DFEM has been ahead.
VXUS has a lower expense ratio. DFEM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.90.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFEM | VXUS |
|---|---|---|
| Expense Ratio | 0.39% | 0.05%Best |
| AUM | $9.6B | $164.9B |
| Dividend Yield | 1.84% | 2.51% |
| Holdings | 6,512 | 8,844 |
| YTD Return | +19.95%Best | +11.63% |
| 1Y Return | +26.10%Best | +17.78% |
| 3Y Return (annualized) | +22.42%Best | +19.91% |
| 5Y Return (annualized) | - | +9.30% |
| Volatility (annualized) | 17.3% | 15.1%Best |
| Max Drawdown | -20.8% | -19.3%Best |
| $10,000 over 4.5 years | $17,877Best | $17,610 |
| Fund Family | Dimensional | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 26, 2022 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.5 years row, are measured over the window both funds cover: Apr 27, 2022 to Oct 9, 2026 (4.5 years).
DFEM vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.5 years both funds cover.
DFEM vs VXUS Performance
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is an ETF from Dimensional and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year DFEM returned +26.10% while VXUS returned +17.78%. Year to date, DFEM is up 19.95% versus a gain of 11.63% for VXUS.
Over three years, DFEM compounded at +22.42% per year against +19.91% for VXUS.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEM has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 15.1% for VXUS. 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 -19.3% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DFEM charges 0.39% per year while VXUS charges 0.05%. On a $10,000 position that is $39 vs $5 annually, a gap of $34 per year that compounds over a long holding period. On income, DFEM currently yields 1.84% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 6,630 holdings in DFEM and 8,082 in VXUS, totalling 93.2% and 89.3% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 3,111 positions appear in both.
The two holdings books were reported 46 days apart, DFEM as of Sep 15, 2026 and VXUS as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
3,111 positions in common, counted across the 6,630 positions we hold weights for in DFEM and 8,082 in VXUS, against full books of 6,512 and 8,844.
Top Shared Holdings
| Stock | Weight in DFEM | Weight in VXUS | Difference |
|---|---|---|---|
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 4.47% | 1.41% | 3.06% |
| 9988:HKAlibaba Group Holding, Ltd. | 0.71% | 0.62% | 0.09% |
| 2454:TWMediaTek Inc ORD TWD10 | 0.51% | 0.35% | 0.16% |
| 2317:TWHon Hai Precision Industry Co Ltd | 0.45% | 0.21% | 0.24% |
| 2308:TWDelta Electronics Inc | 0.34% | 0.21% | 0.13% |
| 3037:TWUnimicron Technology | 0.47% | 0.07% | 0.40% |
| 009150:KRSamsung Electro-Mechanics Co Ltd | 0.44% | 0.09% | 0.35% |
| 3711:TWAse Technology Holding Co Lt | 0.36% | 0.13% | 0.23% |
| BHARTIARTL:MBBharti Airtel Ltd | 0.34% | 0.14% | 0.20% |
| 6223:TWMpi Corp | 0.45% | 0.03% | 0.42% |
You are not choosing between two funds in isolation.
Whichever of DFEM and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFEM or VXUS?
DFEM has an expense ratio of 0.39% while VXUS charges 0.05%. VXUS is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, DFEM or VXUS?
Over the past year DFEM returned +26.10% vs +17.78% for VXUS, so DFEM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFEM or VXUS?
DFEM has been the more volatile fund at 17.3% annualized versus 15.1% for VXUS. Worst drawdown: DFEM -20.8% vs VXUS -19.3%.
Should I hold both DFEM and VXUS?
DFEM and VXUS have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, DFEM or VXUS?
DFEM yields 1.84% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than DFEM?
VXUS has a lower expense ratio. DFEM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.