AUSTIN, Texas–(BUSINESS WIRE)– Dimensional Fund Advisors, a global leader in systematic investing, today extended its exchange-traded fund (ETF) offering by converting four US tax-managed mutual funds into active transparent ETFs listed on the New York Stock Exchange (NYSE). The new ETFs expand Dimensional’s suite of broadly diversified investment solutions, offering greater choice in how financial advisors and institutional investors access Dimensional’s investment solutions.
|Management Fee (%)
|Total Annual Fund Operating Expenses (%)1
|Dimensional U.S. Equity ETF
|NYSE Arca: DFUS
|Dimensional U.S. Core Equity 2 ETF
|NYSE Arca: DFAC
|Dimensional U.S. Small Cap ETF
|NYSE Arca: DFAS
|Dimensional U.S. Targeted Value ETF
|NYSE Arca: DFAT
The four ETFs listed today are part of the firm’s plan to convert six tax-managed mutual funds into ETFs, which offers investors an additional tool to manage capital gains, supporting the funds’ goal of delivering higher after-tax returns by minimizing tax impact. Dimensional plans to convert two additional non-US market tax-managed mutual funds to ETFs in September 2021.2
Dimensional is one of the first asset managers to convert mutual funds into ETFs. With the successful launch of the firm’s first three ETFs and the conversion of these four mutual funds, Dimensional becomes one of the largest active ETF issuers in the industry, with more than $30 billion in combined ETF assets under management placing the firm in the top 10% of all ETF issuers across both active and passive offerings.3
“We expect to have a full lineup of ETFs to offer clients alongside our mutual fund offerings and expanded separately managed accounts platform,” said Dimensional Co-CEO and Chief Investment Officer Gerard O’Reilly. “Our strategies offer the benefits of indexing—such as low costs, low turnover, and high diversification—paired with the advantages of flexible implementation that provide a continuous focus on higher expected returns and robust risk management.”
“For four decades, we have focused on empowering investment professionals, so they can deliver their clients the best investment experience,” added Dimensional Co-CEO Dave Butler. “The solutions we are bringing to the ETF marketplace will further that mission, offering more ability to customize and tailor investments to clients’ specific needs and preferences.”
The new listings follow Dimensional’s successful launch of three core equity market ETFs in 2020. Dimensional investment strategies seek to harness a consistent, broadly diversified, and systematic approach that aims to outperform the market without outguessing the market. Strategies within Dimensional’s suite of ETFs have varying tilts from market weights to securities that offer higher expected returns, such as small cap, value, and high profitability4 securities.
Dimensional ETFs now provide a range of equity solutions that include marketwide, core equity portfolios with varying degrees of emphasis on drivers of expected returns, as well as component solutions, such as value and small cap portfolios. This range of strategies provides more customization in asset allocation, which can help financial professionals meet the specific investment goals and needs of their diverse investor bases.
|Total Annual Fund Operating Expenses (%)1
|U.S. Equity ETF
|U.S. Core Equity Market ETF
|U.S. Core Equity 2 ETF
|International Core Equity Market ETF
|Emerging Core Equity Market ETF
|U.S. Small Cap ETF
|U.S. Targeted Value ETF
More information about Dimensional ETFs can be found here: https://us.dimensional.com/etfs
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 March 31, 2021, Dimensional manages $637 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.
1The “Total Annual Fund Operating Expenses” have been adjusted to reflect the decrease in the management fee payable by the predecessor mutual fund in connection with the reorganization of the predecessor mutual fund into the ETF, effective June 11, 2021.
2A registration statement, including an Information Statement/Prospectus, relating to the reorganization of the two non-US tax-managed mutual funds (“Converting Mutual Funds”) into newly created series of the Dimensional ETF Trust (“New ETFs”) has been filed with the Securities and Exchange Commission on Form N-14. The New ETFs will not be sold to the general public until after the reorganizations. This communication is not an offer to sell shares of the New ETFs.
3US-domiciled ETF data obtained from Morningstar as of 5/31/2021.
4Profitability is defined as operating income before depreciation and amortization minus interest expense divided by book equity. The criteria the advisor uses for assessing relative price and profitability are subject to change from time to time.
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Source: Dimensional Fund Advisors