At a glance
DFCF charges 0.17% a year, above the 0.1% average of the 7 funds most like it (the 7th cheapest of 8). It has $10.98B in assets, the 7th largest of that group; it paid 4.51% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.4% with distributions reinvested, the weakest of those 8 funds; over three years it returned +5.5% a year. At its worst it fell 17.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 35 months after the low. Its ten largest positions make up 37.4% of the fund, out of 1,775 in all.
The short version
Dimensional Core Fixed Income ETF (DFCF) is an actively managed bond fund. It holds investment-grade US Treasurys, mortgage-backed securities and corporate bonds, plus a small slice of foreign bonds with the currency risk hedged. Unlike similar index funds, Dimensional leans toward longer-term and lower-rated investment-grade bonds when it expects extra return for the risk. That approach costs 0.17% a year, compared with 0.03% for BND, AGG and SCHZ.
Price history
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DFCF -1.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| DFCF official prospectus, to Dec 31, 2025 | — | +7.86% | — | — | — | +0.06% |
| Bloomberg U.S. Aggregate Bond Index index, same period | — | +7.30% | — | — | — | +0.05% |
| DFCF price data to Oct 27, 2026 | -1.1% | -1.4% | +5.5% | — | — | -0.1% |
- Over the year to Oct 27, 2026, DFCF returned -1.4%, 8th of 8 among similar funds.
- Its worst full calendar year was 2022 (-14.5%); its best was 2025 (+7.8%).
- The deepest fall in its price history was 19.6% (Dec 3, 2021 to Oct 20, 2022), recovered by Oct 16, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.1% | — |
| 2025 | +7.8% | +7.86% |
| 2024 | +1.9% | +1.95% |
| 2023 | +7.0% | +6.97% |
| 2022 | -14.5% | -14.96% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.1% over that stretch · deepest drop along the way 17.2%, back to its old high 35.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.3600 | |
| 2025 | $1.8900 | -0.5% |
| 2024 | $1.9000 | -1.0% |
| 2023 | $1.9200 | +41.2% |
| 2022 | $1.3600 |
What's inside
As of Jul 31, 2026, the fund held 1,775 securities; the ten largest made up 37.37% of assets, and 6.07% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Federal National Mortgage Association Mortgage-backed securities | 6.19% | |
| Federal National Mortgage Association Mortgage-backed securities | 5.34% | |
| United States of America Bonds and notes | 4.70% | |
| Federal National Mortgage Association Mortgage-backed securities | 4.10% | |
| United States of America Bonds and notes | 3.07% | |
| Government National Mortgage Association 2 Mortgage-backed securities | 3.00% | |
| United States of America Bonds and notes | 2.94% | |
| United States of America Bonds and notes | 2.93% | |
| Federal National Mortgage Association Mortgage-backed securities | 2.85% | |
| United States of America Bonds and notes | 2.25% | |
| United States of America Bonds and notes | 1.99% | |
| Government National Mortgage Association 2 Mortgage-backed securities | 1.74% | |
| Federal National Mortgage Association Mortgage-backed securities | 1.65% | |
| United States of America Bonds and notes | 1.06% | |
| United States of America Bonds and notes | 1.00% |
By country
United States 110.03%Japan 1.98%Canada 1.97%Australia 1.74%Netherlands 1.07%By issuer
Companies 48.54%US Treasury 46.11%US government-sponsored enterprises 20.14%US government agencies 4.74%Foreign governments 1.41%The bonds mature in 11.4 years on average (weighted by size), with an average coupon of 4.43%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $1.11B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.42%, +0.20%, -1.29%.
How it works
DFCF is actively managed and does not track an index. Dimensional aims for the highest total return (interest plus price changes) from investment-grade bonds, meaning bonds rated BBB- or higher. These must make up at least 80% of net assets. The manager adjusts two things. The term premium is the extra return expected for owning longer-maturity bonds. The credit premium is the extra return expected for owning bonds riskier than US Treasurys. When Dimensional expects those premiums to be larger, it adds intermediate-term bonds or lower-rated investment-grade bonds (A+ to BBB-). It pulls back when they look smaller.
A limit keeps the fund from straying too far. Duration measures how much a bond's price moves when interest rates change. The fund's duration normally stays between one year below and a quarter year above that of the Bloomberg U.S. Aggregate Bond Index, which was about 5.98 years as of December 31, 2025. Most of its bonds mature within 20 years, though mortgage-backed securities can run longer. Portfolio turnover was 23%.
A few mechanics are worth knowing. The fund buys mortgage-backed securities through the to-be-announced (TBA) market, which means agreeing to buy mortgage pools before they settle. It aims to hedge foreign currency exposure with forward contracts. It may also use futures, options on futures and credit default swaps, and it lends securities for extra income.
What it really costs
- DFCF charges 0.17% a year, versus an average of 0.1% for the similar funds below (7th of 8, cheapest first).
- Of that, 0.16% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.01% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $17 in the first year and $229 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| DFCF | $17 | $57 | $100 | $229 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
DFCF spreads money across Treasurys, mortgage-backed securities and investment-grade corporate bonds, so it can serve as the main bond holding alongside stocks.
DFCF can add steadier returns and monthly income to a stock-heavy portfolio. Its trailing 12-month yield was 4.51% as of October 27, 2026. The fund launched in November 2021, so it has no record through the 2008 financial crisis or the 2020 COVID crash. It did go through 2022, when rising rates hit bonds hard. The fund lost 14.96% that calendar year. Its deepest drop was 19.6%, from December 2021 to October 2022, and it took about 36 months to recover.
A retiree drawing from it in 2022 would have been selling shares below their earlier value for a long stretch. Costs are modest but above those of comparable index funds. The SEC's standard example shows $17 in costs in the first year and $229 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting one broad investment-grade bond fund that mixes Treasurys, mortgage-backed securities and corporate bonds, with foreign bonds hedged back to dollars.
- Investors who like Dimensional's approach of leaning into credit and term premiums and accept a 0.17% expense ratio for active management.
- Retirees wanting monthly income; the trailing 12-month yield was 4.51%, or $1.84 per share, as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: BND, AGG and SCHZ charge 0.03% a year and have a similar average maturity and issuer mix.
- Anyone who needs stable value in the short term; DFCF fell 19.6% from December 2021 to October 2022 and took about 36 months to recover.
- Investors expecting active management to win every year; DFCF had the lowest one-year return (-1.4%) of eight similar funds through October 27, 2026.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| DFCF this fund | 11.4 yrs | 0.17% | $10.98B | -1.4% | +5.5% |
| BND Vanguard Total Bond Market ETF | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
| IUSB iShares Core Total USD Bond Market ETF | 11.8 yrs | 0.06% | $43.00B | -0.3% | +5.1% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| SCHZ Schwab U.S. Aggregate Bond ETF | 12.5 yrs | 0.03% | $10.60B | -1.1% | +5.2% |
| FBND Fidelity Total Bond ETF | 14.4 yrs | 0.36% | $28.16B | -0.2% | +5.4% |
| BIV Vanguard Intermediate-Term Bond ETF | 7.5 yrs | 0.03% | $52.45B | -0.7% | +5.1% |
| PULS PGIM Ultra Short Bond ETF | 8.8 yrs | 0.15% | $18.71B | +4.1% | +5.2% |
Questions investors ask
Does DFCF pay monthly dividends?
Yes. DFCF pays distributions every month. Its trailing 12-month yield was 4.51% as of October 27, 2026, or about $1.84 per share. That income isn't fixed. If interest rates fall, maturing bonds get reinvested at lower rates and payouts can shrink. The share price also moves. The fund lost 14.96% in 2022 when rates jumped, so the income does not protect the amount invested.
What's the difference between DFCF and BND?
The biggest differences are cost and approach. DFCF is actively managed and costs 0.17% a year. Vanguard's BND, the closest match by maturity and issuer mix, costs 0.03%. Their portfolios look alike, with average maturities of 11.4 and 11.7 years. Over three years, DFCF returned 5.5% a year through October 27, 2026, compared with 5.2% for BND through October 29. Over one year, DFCF lost 1.4% and BND lost 0.6%. BND is far larger, with about $397 billion in net assets.
Is DFCF an index fund?
No. DFCF is actively managed and doesn't try to copy an index. Dimensional decides how much to hold in longer-term and lower-rated investment-grade bonds based on the extra return it expects. It does keep its interest-rate sensitivity close to that of the Bloomberg U.S. Aggregate Bond Index. Through December 31, 2025, DFCF returned 7.86% over one year, compared with 7.30% for that index. Since inception, it returned 0.06% a year, compared with 0.05% for the index.
How much did DFCF lose in 2022?
DFCF lost 14.96% in calendar 2022, its worst calendar year, as rising interest rates pushed bond prices down. Its worst quarter was the first quarter of 2022, at -7.32%. From its December 2021 peak to its October 2022 low, the share price fell 19.6%. It did not get back to that peak until October 16, 2025, about 36 months later. The fund gained 6.97% in 2023, 1.95% in 2024 and 7.86% in 2025.
What bonds are in DFCF?
As of July 31, 2026, DFCF had 1,775 holdings, almost all of them in the US. Corporate bonds made up 48.5% of net assets and US Treasurys 46.1%. Bonds from government-sponsored enterprises such as Fannie Mae made up 20.1%. The largest positions were two Fannie Mae mortgage-backed securities, at 6.2% and 5.3%, and a Treasury note at 4.7%. Smaller stakes came from Japan, Canada and Australia, each about 2%. The fund aims to hedge its foreign currency exposure.