DFSB vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricDFSBSPYWinner
Expense Ratio0.24%0.09%
AUM$725M$789.1B
Dividend Yield4.32%1.01%
Holdings715505
YTD Return+0.59%+13.75%
1Y Return+2.11%+22.91%
3Y Return (annualized)+4.86%+21.67%
5Y Return (annualized)-+13.32%
Volatility (annualized)5.6%15.3%
Max Drawdown-5.2%-56.5%
Fund FamilyDimensionalState Street Investment Management
CategoryFixed IncomeEquity
InceptionNov 15, 2022Jan 22, 1993

DFSB vs SPY Performance

Dimensional Global Sustainability Fixed Income ETF (DFSB) 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 DFSB returned +2.11% while SPY returned +22.91%. Year to date, DFSB is up 0.59% versus a gain of 13.75% for SPY.

Over three years, DFSB compounded at +4.86% per year against +21.67% for SPY. Across the full 4-year window we track, SPY has the edge at +8.85% annualized vs +4.42%. 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 5.6% for DFSB. 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 -5.2% for DFSB 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DFSB charges 0.24% per year while SPY charges 0.09%. On a $10,000 position that is $24 vs $9 annually, a gap of $15 per year that compounds over a long holding period. On income, DFSB currently yields 4.32% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

DFSB and SPY share 0 holdings out of 885 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, DFSB or SPY?

DFSB has an expense ratio of 0.24% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, DFSB or SPY?

Over the past year DFSB returned +2.11% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), DFSB annualized +4.42% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, DFSB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.6% for DFSB. Worst drawdown: DFSB -5.2% vs SPY -56.5%.

Should I hold both DFSB and SPY?

DFSB and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DFSB and SPY?

DFSB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 885 unique securities.

Which pays a higher dividend, DFSB or SPY?

DFSB yields 4.32% while SPY yields 1.01%, so DFSB currently pays the higher dividend yield.

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