🤝 BFF Take
VTI for Simplicity and Cost. DFAC If You Believe in Factor Premiums.
VTI (Vanguard Total Stock Market) holds roughly 3,700 US stocks weighted by market cap at 0.03%. DFAC (Dimensional US Core Equity 2) holds similar breadth but systematically overweights small cap and value characteristics and screens for profitability, all at 0.19%. DFAC's approach is grounded in the Fama-French three-factor model and decades of empirical research suggesting that small, cheap, profitable companies earn higher expected returns than the market-cap-weighted average. The debate is whether this premium persists going forward, especially after widespread adoption of factor strategies. Historically, DFAC-style strategies have outperformed pure cap-weighted funds over 20+ year periods. In the 2010s, growth and mega-cap tech dominated and factor tilts underperformed. VTI's 0.03% cost and total-market simplicity make it appropriate for most investors. DFAC is a serious, evidence-based alternative for investors who understand factor investing and are committed to a multi-decade holding period.
📋 Quick Takeaways
💰VTI: 0.03% ER, market-cap weighted, ~3,700 stocks. DFAC: 0.19% ER, tilted toward small/value/profitable, ~2,500 stocks.
📚DFAC's methodology comes from decades of academic factor research. Factor premiums are real but can underperform for 5-10 years.
🎯Default choice: VTI. For long-term factor believers who can stick with underperformance: DFAC earns its cost.
📊 Data-Based Take: VTI has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
DFAC
Dimensional US Core Equity 2 ETF
VTI
Vanguard Total Stock Market ETF
📋 DFAC vs VTI — Key Facts Side by Side
| Metric |
DFAC |
VTI |
| Fund Name |
Dimensional US Core Equity 2 ETF |
Vanguard Total Stock Market ETF |
| Issuer |
Dimensional |
Vanguard |
| Tracks Index |
Active (factor-based) |
CRSP US Total Market Index |
| Expense Ratio |
0.19% |
0.03% ✓ |
| Cost per $10K/yr |
$19.00 |
$3.00 |
| AUM |
$30B |
$450B |
| Holdings |
2,500 |
3,700 |
| Inception |
2022 |
2001 |
| 1-Year Return |
+22.40% |
+25.10% |
| 3-Year Return |
— |
+9.60% |
| 5-Year Return |
— |
+15.20% |
| Avg Bid-Ask Spread |
0.03% |
0.00% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 DFAC vs VTI — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy DFAC or VTI?
Choose if...
DFAC
- You already use Dimensional and prefer staying within their fund family
Choose if...
VTI
- You want the lowest fees — saves ~$16/yr per $10K vs DFAC
- You want broader diversification (3,700 holdings vs 2,500)
- You want the entire US stock market — large, mid, and small cap in one fund
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❓ DFAC vs VTI — Frequently Asked Questions
What does DFAC invest in?
DFAC (Dimensional US Core Equity 2) invests in US stocks but systematically tilts toward three factors: small capitalization (smaller companies than the market-cap average), value (companies trading at lower valuations), and profitability (companies with strong operating profits). It holds roughly 2,500 stocks, a broad portfolio that overweights characteristics academic research suggests earn higher long-run returns than the market average.
Is DFAC better than VTI?
DFAC has the potential to outperform VTI over very long periods if factor premiums persist, but it underperformed significantly during the 2010s growth-dominated decade. VTI is simpler, 6x cheaper, and has delivered excellent returns without any factor complexity. Most investors are better served by VTI's simplicity and near-zero cost. DFAC is appropriate for committed factor investors who understand the strategy's periods of underperformance and plan to hold for 20+ years.
Who should invest in DFAC?
DFAC is appropriate for investors who have studied factor investing, understand that small cap value can underperform for extended periods, and are committed to a long-term factor strategy. It is popular among fee-only financial advisors who structure client portfolios around Fama-French factor research. Investors who would sell after three years of underperformance should stick with VTI.
How does DFAC compare to AVUS or AVUV?
AVUS (Avantis US Equity) is the Avantis equivalent of DFAC: a broad US equity fund with a factor tilt at 0.15%. AVUV is Avantis's small-cap value fund, more concentrated in the factor premium. DFAC and AVUS are broad factor-tilted core positions; AVUV is a more concentrated factor bet. Many factor investors hold a VTI core with a DFAC or AVUS tilt and an AVUV allocation for concentrated small cap value exposure.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.