DFSD vs IVV
Dimensional Short-Duration Fixed Income ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. DFSD offers more diversification with 1125 holdings.
Side-by-Side Comparison
| Metric | DFSD | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.16% | 0.03% | |
| AUM | $7.1B | $865.2B | |
| Dividend Yield | 4.18% | 1.09% | |
| Holdings | 1,500 | 508 | |
| YTD Return | +1.02% | +13.80% | |
| 1Y Return | +3.07% | +23.70% | |
| 3Y Return (annualized) | +5.19% | +21.49% | |
| 5Y Return (annualized) | - | +13.43% | |
| Volatility (annualized) | 2.7% | 15.1% | |
| Max Drawdown | -8.4% | -56.5% | |
| Fund Family | Dimensional | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2021 | May 15, 2000 |
DFSD vs IVV Performance
Dimensional Short-Duration Fixed Income ETF (DFSD) 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 DFSD returned +3.07% while IVV returned +23.70%. Year to date, DFSD is up 1.02% versus a gain of 13.80% for IVV.
Over three years, DFSD compounded at +5.19% per year against +21.49% for IVV. Across the full 5-year window we track, IVV has the edge at +7.05% annualized vs +2.53%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.7% for DFSD. 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 -8.4% for DFSD 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFSD charges 0.16% per year while IVV charges 0.03%. On a $10,000 position that is $16 vs $3 annually, a gap of $13 per year that compounds over a long holding period. On income, DFSD currently yields 4.18% against 1.09% for IVV.
Holdings Overlap
DFSD and IVV share 0 holdings out of 1630 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, DFSD or IVV?
DFSD has an expense ratio of 0.16% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, DFSD or IVV?
Over the past year DFSD returned +3.07% vs +23.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (5 years), DFSD annualized +2.53% vs +7.05% for IVV. Past performance does not guarantee future results.
Which is riskier, DFSD or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 2.7% for DFSD. Worst drawdown: DFSD -8.4% vs IVV -56.5%.
Should I hold both DFSD and IVV?
DFSD and IVV have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFSD and IVV?
DFSD and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1630 unique securities.
Which pays a higher dividend, DFSD or IVV?
DFSD yields 4.18% while IVV yields 1.09%, so DFSD currently pays the higher dividend yield.
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