DFAC vs VTI: Dimensional Factor Tilt vs Total Market
VTI gives you the entire US market at near-zero cost. DFAC overweights small, cheap, profitable companies based on decades of academic factor research at 0.19%. The question is whether factor premiums are worth paying for.
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.
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.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 DFAC vs VTI: Key Facts Side by Side
| Metric | DFAC | VTI |
|---|---|---|
| Fund Name | U.S. Core Equity 2 Portfolio-ETF Class Shares | Vanguard Morningstar Total Stock Market ETF |
| Issuer | Dimensional | Vanguard |
| Tracks Index | Active (factor-based) | CRSP US Total Market Index |
| Expense Ratio | 0.17% | 0.03% ✓ |
| Cost per $10K/yr | $17.00 | $3.00 |
| AUM | $38.4B | $2,202.6B |
| Holdings | 2,500 | 3,700 |
| Inception | 2022 | 2001 |
| 1-Year Return | +22.40% | +16.12% |
| 3-Year Return | — | +22.88% |
| 5-Year Return | — | +12.63% |
| Dividend Yield | — | 1.06% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.03% | 0.00% |
AUM and returns updated Oct 15, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 DFAC vs VTI: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- already use Dimensional and prefer staying within one fund family
- want the lowest fees: saves ~$14/yr per $10K vs DFAC
- want broader diversification (3,700 holdings vs 2,500)
- want the entire US stock market: large, mid, and small cap in one fund
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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