Dimensional Fund Advisors Lists Active Exchange-Traded Funds
New ETFs offer broadly diversified, all cap core equity exposure with robust daily implementation
Austin, TX—Wednesday, November 18, 2020—Dimensional Fund Advisors, a global leader in systematic factor investing, has announced the listing of two active transparent exchange-traded funds (ETFs) that offer exposure to the US equity market and non-US developed equity market.
The ETFs, which are listed on the New York Stock Exchange (NYSE) starting today, are designed to leverage the power of Dimensional’s investment engine—a consistent investment philosophy combined with a value-added approach to implementation that the firm has been testing, refining, and advancing for nearly four decades. The NYSE-listed funds are:
Dimensional US Core Equity Market ETF (NYSE Arca: DFAU)
Net expense ratio: 0.12%
Dimensional International Core Equity Market ETF (NYSE Arca: DFAI)
Net expense ratio: 0.18%
Dimensional also plans to launch an Emerging Core Equity Market ETF in early December.
“We are pleased to list the first of what we expect to be a growing suite of Dimensional ETF solutions,” Co-CEO and Chief Investment Officer Gerard O’Reilly said. “We believe that our approach to systematic investing, using a flexible daily process based on rigorous research, offers investors a compelling alternative to existing active and index-based ETFs.”
Dimensional Core Equity solutions are designed to offer broadly diversified, all cap core exposure, with an emphasis on securities with higher expected returns using variables such as company size, relative price, and profitability. The Core Equity market portfolios aim to achieve a light level of tilt from market cap weights and low tracking error to the market through a daily managed approach.
“We have always worked with clients to anticipate their needs and understand where we can add value,” Co-CEO Dave Butler said. “With continued enhancements to our Mutual Fund offering, expansion of our separately managed accounts program, and today’s launch of Dimensional’s first active ETFs, we are providing clients with choices in how they access our investment expertise."
ABOUT DIMENSIONAL FUND ADVISORS
Dimensional is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in markets, we help investors pursue higher expected returns through a systematic investment process that integrates research insights with advanced portfolio design, management, and trading, while balancing tradeoffs that can impact returns. Dimensional is headquartered in Austin, Texas, and has offices across North America, Europe, and Asia. As of September 30, 2020, Dimensional manages $527 billion for investors worldwide.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at us.dimensional.com. Risks include loss of principal and fluctuating value. These risks are described in the Principal Risks section of the prospectus. Dimensional funds are distributed by DFA Securities LLC.
ETFs trade like stocks, fluctuate in market value, and may trade either at a premium or discount to their net asset value. ETF shares trade at market price and are not individually redeemable with the issuing fund, other than in large share amounts called creation units. ETFs are subject to risks similar to those of stocks, including those regarding short-selling and margin account maintenance. Ordinary broker commissions may apply.