What is the main difference between DFAE and DFAI in terms of market exposure?

DFAE focuses on emerging markets, providing access to economies in transition and high-growth potential. DFAI targets international developed markets, offering exposure to established economies like Europe, Japan, and Australia. This distinction means DFAE may experience higher volatility due to less mature markets, whereas DFAI tends to be more stable with mature corporate governance structures.

How do expense ratios impact long-term returns in ETFs like DFAE and DFAI?

The expense ratio is the annual fee for managing the fund. DFAE has an expense ratio of 0.29%, while DFAI has 0.18%. Over time, the 0.11 percentage point difference compounds, reducing net returns. Lower fees allow more of your investment to remain invested, enhancing long-term growth. DFAI's lower cost makes it more attractive for fee-conscious investors.

What role do dividends play in the total return of ETFs?

Dividends contribute to the total return of ETFs, along with capital appreciation. DFAE has a dividend yield of 1.72%, while DFAI offers 2.28%. These payments provide income and can be reinvested to compound returns. While higher dividends are beneficial for income-focused strategies, they should be considered alongside growth potential and market conditions.

Which type of investor is DFAE typically suited for?

DFAE is typically suited for investors seeking exposure to emerging markets. These investors are often growth-oriented, willing to tolerate higher volatility in exchange for potentially higher returns. DFAE's diversified holdings in emerging markets cater to those looking to capture economic growth in developing economies.

Which type of investor is DFAI typically suited for?

DFAI is typically suited for investors seeking exposure to international developed markets. These investors are often income-focused or prefer stable growth with established economies. DFAI's higher dividend yield and lower expense ratio make it appealing to those looking for consistent income and lower costs.

Are DFAE and DFAI diversified within their respective markets?

Both funds are designed to be diversified within their respective markets. DFAE holds a broad range of emerging market companies, reducing single-stock risk. DFAI similarly invests across various sectors in international developed markets. Their diversification helps mitigate individual company performance impacts on the overall fund.

What is the significance of the top holdings in DFAE and DFAI?

The top holdings, such as IBN and BABA in DFAE and ASML in DFAI, provide insight into the largest exposures. While not heavily concentrated, these holdings reflect the fund's investment focus and potential drivers of performance. A diversified approach means no single holding dominates returns, promoting stability.

How do the top-10 holdings of DFAE and DFAI compare?

The top-10 holdings of DFAE and DFAI have no overlap, indicating distinct portfolios. DFAE focuses on emerging market companies like IBN and BABA, while DFAI invests in developed market giants such as ASML. This differentiation supports the unique exposure of each fund, aligning with their respective market segments.

What is the impact of market conditions on emerging versus developed market ETFs?

Market conditions significantly influence emerging and developed market ETFs. Emerging markets, targeted by DFAE, can be more volatile due to economic and political factors. Developed markets, represented by DFAI, tend to be more stable, influenced by mature economies' resilience. Investors should consider these factors when evaluating performance.

How does liquidity affect ETFs like DFAE and DFAI?

Liquidity, indicated by net assets, affects trading efficiency. DFAE has $10.2 billion, and DFAI has $18.0 billion, making both highly liquid. High liquidity ensures ease of entry and exit, reducing trading costs and minimizing bid-ask spreads. This liquidity supports active trading and stable NAVs.

What are the risks associated with investing in emerging markets?

Emerging markets carry risks such as economic instability, political turmoil, and currency fluctuations. DFAE addresses these with diversified holdings across sectors and geographies. Investors should be aware of these risks, which can lead to higher volatility but potentially offer high growth.

What considerations should be made when choosing between DFAE and DFAI?

Investors should consider market exposure, expense ratios, dividend yields, and risk tolerance. DFAE suits growth-oriented investors seeking emerging markets, while DFAI aligns with income-focused investors targeting developed markets. Evaluate personal financial goals and consult a financial advisor for personalised guidance.

DFAE vs DFAI

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare the Dimensional Emerging Core Equity ETF (DFAE) and Dimensional International Core Equity Market ETF (DFAI). This page examines their expense ratios (0.29% vs 0.18%), dividend yields, top holdings, and how each fund tracks its respective market segment. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

DFAE

Metric

DFAI

0.29%

Expense Ratio

0.18%

1.72%

Dividend Yield

2.28%

$10.16B

Net Assets

$17.96B

6,234

Holdings

3,675

Dec 2, 2020

Inception Date

Nov 17, 2020

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Index Tracked

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Diversified Emerging Mkts

Fund Category

Foreign Large Blend

DFAI costs about $11.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

DFAE vs DFEM

Compare DFAE and DFEM emerging equity ETFs. Review 0.29% versus 0.39% fees, 1.72% versus 1.81% yields, shared IBN holding, and tracking details.

AVDE vs DFAI

Compare Avantis International Equity (AVDE) and Dimensional International Core Equity (DFAI) on expense ratios, yields, holdings, and tracking methods.

Investment Analysis

DFAE

Pros

Fund A holds $10.2 billion in net assets, indicating a well established and liquid trading vehicle for investors.
The fund’s $10.2 billion scale provides substantial liquidity, facilitating efficient entry and exit for retail investors.
The dividend yield of 1.72 percent contributes to total return, though it remains modest for emerging market equity funds.

Considerations

The expense ratio of 0.29 percent is higher than many comparable broad emerging market exchange-traded funds.
Top holdings are individually under 0.5 percent, which may limit concentrated exposure to single-stock performance drivers.
The dividend yield of 1.72 percent is lower than many income-focused emerging market equity strategies currently available.

DFAI

Pros

The 0.18 percent expense ratio represents a cost-efficient approach for gaining exposure to international developed markets.
Firm’s $18 billion asset base ensures the fund is large and highly liquid for traders of all sizes.
A 2.28 percent dividend yield provides a more substantial income component compared to many low-cost international blend ETFs.

Considerations

The issuer is recorded as ARK, which contrasts with the Dimensional brand typically expected for this fund.
Track record data and index methodology are not available, limiting the ability to assess historical tracking precision.
Only one top holding is provided, making a comprehensive assessment of current concentration or portfolio breadth difficult.

About DFAE and DFAI

DFAE (DFAE)

The Dimensional Emerging Core Equity ETF (DFAE) offers investors broad exposure to the global emerging markets landscape. Launched in late 2020, this fund holds a substantial net asset base of approximately USD 10.16 billion and maintains a competitive expense ratio of 0.29%. With over 6,200 individual holdings, it provides extensive diversification across various sectors and countries within emerging economies. The fund currently yields an estimated 1.72% through dividends, although it is worth noting that dividends are not guaranteed and can fluctuate based on market conditions and company performance. Designed for those seeking to participate in the growth potential of developing nations, this ETF aims to capture core market returns rather than betting on specific sectors. Investors should remember that emerging markets can be more volatile than developed ones, and the value of investments can fall as well as rise.

DFAI (DFAI)

The Dimensional International Core Equity Market ETF (DFAI) provides investors with exposure to large and mid-capitalisation companies in developed markets outside the United States. As an exchange-traded fund, it aims to offer broad diversification across the international equity landscape, potentially capturing growth opportunities in established global economies. With a low expense ratio of 0.18%, DFAI seeks to be a cost-efficient vehicle for gaining access to international stock markets. The fund holds over 3,600 stocks, reflecting a comprehensive approach to diversification. It launched in November 2020 and currently manages approximately USD 17.96 billion in net assets. Investors should note that while the fund has a historical dividend yield of 2.28%, values can fluctuate, and past performance does not guarantee future results. This ETF suits those looking to broaden their portfolio's geographic mix beyond domestic markets, though it carries inherent risks associated with foreign investment, including currency fluctuations.

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DFAE vs DFAI

Fund Snapshot

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DFAE vs DFEM

AVDE vs DFAI

Investment Analysis

DFAE

Pros

Considerations

DFAI

Pros

Considerations

About DFAE and DFAI

Buy DFAE or DFAI in Nemo

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Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the main difference between DFAE and DFAI in terms of market exposure?

How do expense ratios impact long-term returns in ETFs like DFAE and DFAI?

What role do dividends play in the total return of ETFs?

Which type of investor is DFAE typically suited for?

Which type of investor is DFAI typically suited for?

Are DFAE and DFAI diversified within their respective markets?

What is the significance of the top holdings in DFAE and DFAI?

How do the top-10 holdings of DFAE and DFAI compare?

What is the impact of market conditions on emerging versus developed market ETFs?

How does liquidity affect ETFs like DFAE and DFAI?

What are the risks associated with investing in emerging markets?

What considerations should be made when choosing between DFAE and DFAI?

Fund Snapshot

About DFAE and DFAI

Discover More Comparisons

DFAE vs DFEM

AVDE vs DFAI