DFSE vs VOO
Dimensional Emerging Markets Sustainability Core 1 ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. DFSE delivered stronger 1-year returns. DFSE offers more diversification with 1859 holdings.
Side-by-Side Comparison
| Metric | DFSE | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.41% | 0.03% | |
| AUM | $582M | $979.0B | |
| Dividend Yield | 1.89% | 1.09% | |
| Holdings | 4,274 | 509 | |
| YTD Return | +13.28% | +13.79% | |
| 1Y Return | +25.35% | +23.01% | |
| 3Y Return (annualized) | +18.68% | +21.78% | |
| 5Y Return (annualized) | - | +13.39% | |
| Volatility (annualized) | 15.0% | 14.1% | |
| Max Drawdown | -19.8% | -34.3% | |
| Fund Family | Dimensional | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2022 | Sep 7, 2010 |
DFSE vs VOO Performance
Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is a ETF from Dimensional and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DFSE returned +25.35% while VOO returned +23.01%. Year to date, DFSE is up 13.28% versus a gain of 13.79% for VOO.
Over three years, DFSE compounded at +18.68% per year against +21.78% for VOO. Across the full 4-year window we track, DFSE has the edge at +20.68% annualized vs +13.57%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFSE has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -19.8% for DFSE 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFSE charges 0.41% per year while VOO charges 0.03%. On a $10,000 position that is $41 vs $3 annually, a gap of $38 per year that compounds over a long holding period. On income, DFSE currently yields 1.89% against 1.09% for VOO.
Holdings Overlap
DFSE and VOO share 373 holdings out of 1991 unique holdings combined, representing a 66.5% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, DFSE or VOO?
DFSE has an expense ratio of 0.41% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, DFSE or VOO?
Over the past year DFSE returned +25.35% vs +23.01% for VOO, so DFSE leads on 1-year performance. Over the longest common window we track (4 years), DFSE annualized +20.68% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, DFSE or VOO?
DFSE has been the more volatile fund at 15.0% annualized versus 14.1% for VOO. Worst drawdown: DFSE -19.8% vs VOO -34.3%.
Should I hold both DFSE and VOO?
DFSE and VOO have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFSE and VOO?
DFSE and VOO share 373 common holdings with a 66.5% weight overlap. Combined, they hold 1991 unique securities.
Which pays a higher dividend, DFSE or VOO?
DFSE yields 1.89% while VOO yields 1.09%, so DFSE currently pays the higher dividend yield.
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