DFEM vs VXUS

Quick Verdict

VXUS has a lower expense ratio. DFEM delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: DFEMMore Diversified: VXUS

Side-by-Side Comparison

MetricDFEMVXUSWinner
Expense Ratio0.39%0.05%
AUM$8.9B$156.5B
Dividend Yield1.85%2.60%
Holdings6,5128,747
YTD Return+16.85%+14.57%
1Y Return+31.38%+27.82%
3Y Return (annualized)+20.23%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)17.4%15.1%
Max Drawdown-20.8%-39.9%
Fund FamilyDimensionalVanguard (US)
CategoryEquityEquity
InceptionApr 26, 2022Jan 26, 2011

DFEM vs VXUS Performance

Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is a ETF from Dimensional and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year DFEM returned +31.38% while VXUS returned +27.82%. Year to date, DFEM is up 16.85% versus a gain of 14.57% for VXUS.

Over three years, DFEM compounded at +20.23% per year against +19.27% for VXUS. Across the full 4-year window we track, DFEM has the edge at +13.68% annualized vs +4.86%. 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 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 -39.9% for VXUS. 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 0.91. 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 1.85% against 2.60% for VXUS.

Holdings Overlap

18.0%overlap

DFEM and VXUS share 2999 holdings out of 11178 unique holdings combined, representing a 18.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DFEMWeight in VXUSDifference
2330:TW8.75%3.41%5.34%
000660:KR2.42%0.90%1.52%
0700:KY2.28%0.92%1.36%
9988:HKProProPro
PDDProProPro
2317:TWProProPro
005380:KRProProPro
2308:TWProProPro
601318:SHProProPro
7203:SAProProPro
See all 10 holdings DFEM shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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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. On a $10,000 investment, that is $34 per year of difference.

Which performed better, DFEM or VXUS?

Over the past year DFEM returned +31.38% vs +27.82% for VXUS, so DFEM leads on 1-year performance. Over the longest common window we track (4 years), DFEM annualized +13.68% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, DFEM or VXUS?

DFEM has been the more volatile fund at 17.4% annualized versus 15.1% for VXUS. Worst drawdown: DFEM -20.8% vs VXUS -39.9%.

Should I hold both DFEM and VXUS?

DFEM and VXUS have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between DFEM and VXUS?

DFEM and VXUS share 2999 common holdings with a 18.0% weight overlap. Combined, they hold 11178 unique securities.

Which pays a higher dividend, DFEM or VXUS?

DFEM yields 1.85% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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