Dimensional expanded its ETF offering with three funds that offer exposure to US small cap value and US high profitability equities, as well as US real estate markets.
Austin, TX—February 24, 2022—Dimensional Fund Advisors, a global leader in systematic multifactor investing, expanded its exchange-traded funds (ETFs) offering with today’s listing of three new US equity ETFs on the New York Stock Exchange (NYSE). The new ETFs offer broadly diversified exposure to US small cap value and US high profitability1 equities, as well as US real estate markets.
“We continue to build out Dimensional’s ETF suite, which not only offers the benefits of passive strategies—such as broad diversification, low turnover, and transparency—but also provides the advantages of active, flexible portfolio management to continually target higher expected returns over traditional indexes,” said Co-CEO and Chief Investment Officer Gerard O’Reilly. “These areas of the market are core to our expertise, as Dimensional has been researching and managing small cap value, high profitability, and real estate strategies for decades.”
|New ETF||Ticker||Management Fee (%)||Total Annual Fund|
Operating Expenses (%)
|Dimensional US Small Cap Value ETF||NYSE Arca: DFSV||0.28||0.33||0.31|
|Dimensional US High Profitability ETF||NYSE Arca: DUHP||0.19||0.24||0.22|
|Dimensional US Real Estate ETF||NYSE Arca: DFAR||0.17||0.22||0.19|
Dimensional has agreed to waive certain fees and in certain instances, assume certain expenses of the ETFs. Please read the ETF’s prospectus for details and more information.
Dimensional’s ETF suite harnesses the firm’s daily, flexible implementation process that seeks to maintain consistent exposure to each strategy’s specific investment objectives. The ETFs also go beyond indexing to pursue higher expected returns, with comprehensive risk management and tax efficiency. The funds listing today are new ETFs that can benefit from the long track records of similar strategies that Dimensional has utilized for decades within the firm’s mutual fund offering.
The three newest ETFs are part of the firm’s previously announced plan to list 10 additional equity ETFs, complete another mutual fund-to-ETF conversion, and take further steps to build out its ETF lineup in 2022.
“Active transparent ETFs provide financial professionals and investors with an efficient tool to access Dimensional’s systematic investment philosophy,” said Co-CEO Dave Butler. “We continue to build a full suite of ETF solutions, mutual funds, and lower-minimum separate accounts that give financial professionals a more complete ability to customize portfolios to the individual needs of their clients.”
Since its first ETF listing in November 2020, the firm has listed 13 active transparent ETFs, with approximately $45 billion in assets under management. The new listings follow Dimensional’s successful launch of four fixed income ETFs in November 2021. Those ETFs surpassed $1 billion in assets in just two months of trading. Dimensional fixed income strategies use information in market prices and yield curves around the world to invest in bonds with higher expected returns, rather than trying to outguess the market or time interest rates.
In addition to ongoing growth in Dimensional’s ETF suite, the firm also recently launched an expanded separately managed accounts (SMAs) offering, which gives more investors access to customized portfolio solutions. Dimensional also continues to support and expand its mutual fund lineup.
More information about Dimensional ETFs can be found here: https://us.dimensional.com/etfs
1Profitability is defined as a company’s operating income before depreciation and amortization minus interest expense scaled by book equity.
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 13 global offices across North America, Europe, and Asia. As of December 31, 2021, Dimensional manages $679 billion for investors worldwide. For more information, please visit dimensional.com.
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. 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. Risks include loss of principal and fluctuating value. Diversification does not eliminate the risk of market loss.
Sector-specific investments focus on a specific segment of the market which can increase investment risks. Real estate investment risks include changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and creditworthiness of the issuer. These risks are described in the Principal Risks section of the prospectus.