Learn about DFAW, a Globally Diversified Equity Solution
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Globally diversified: A single fund designed to provide diversified exposure to stock markets around the world.
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Designed to systematically beat the market: Drawing on decades of academic research, Dimensional seeks to outperform the market by emphasizing the types of companies that have historically delivered higher returns over time.
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Competitively priced: DFAW is competitively priced with a net expense ratio of 0.25%, placing it within the lowest 5% of Morningstar category peers.1
The exchange-traded-fund (ETF) market is flooded with commentators touting the hottest new niche strategies and flashy tickers, tempting investors to jump into every new investment fad.2 But the truth is, for most investors, it may be better to skip the hype and stick to the essentials when investing, focusing on ETFs that are soundly designed, well-diversified, and cost-conscious.
DFAW—Dimensional’s World Equity ETF—is a single fund that offers a world of diversification across 45-plus countries and more than 12,000 companies, ranging in size from large caps to micro caps. DFAW was designed to provide financial professionals with an efficient solution for building globally diversified equity portfolios for investors, because this kind of global diversification can play an important, foundational role in an investor’s portfolio. But DFAW does more than provide exposure to global stock markets. Decades of academic research demonstrate that not every company stock provides the same return, so DFAW is designed to place extra emphasis on the types of stocks that tend to outperform over time—smaller, lower-relative-price (often called “value”), and higher-profitability companies.3
With over 40 years of experience, Dimensional manages all its funds with systematic active implementation. “Systematic” means that every day we process thousands of market data to glean objective, up-to-date market information amid changing conditions. “Active” means we have daily flexibility to use that information to make timely, sensible decisions that help us add value, while seeking to minimize costs and risks. This systematic, active approach is similar to a pilot making continuous, small adjustments as real-time conditions and circumstances change, using the combination of an autopilot system with pilot oversight to keep the plane on course and get travelers where they want to go.
For building efficient ETF asset allocations, DFAW may be the ticket to a globally diversified stock portfolio.
Footnotes
- 1. Fee and expense information as of the prospectus dated September 6, 2023. Comparison against funds in Morningstar peer categories as of December 29, 2023.
- 2. For example, see “ETF Street” on CNBC.com. On February 8, 2024, the page included videos and articles promoting thematic ETFs with focuses on India ETFs, spot bitcoin ETFs, and semiconductor ETFs.
- 3. Profitability is a company’s operating income before depreciation and amortization minus interest expense scaled by book equity.
Disclosures
Total operating expense ratio of 0.26% as of prospectus dated September 6, 2023.
Certain Portfolios have entered into fee waiver and/or expense assumption arrangements with the Advisor. In these cases, the Advisor has contractually agreed, under certain circumstances, to waive certain fees and/or assume certain expenses of the Portfolio. Unless otherwise stated in the prospectus, the Advisor may amend or discontinue these arrangements at any time, one year from the date of the prospectus. The net expense ratio reflects the total annual fund operating expenses of the Portfolio after taking into account any such fee waiver and/or expense assumption arrangements. Please read the Portfolio’s prospectus for details and more information.
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 dimensional.com. Dimensional funds are distributed by DFA Securities LLC.
This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions.
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 risk similar to those of stocks, including those regarding short selling and margin account maintenance. Brokerage commissions and expenses will reduce returns.
Risks include loss of principal and fluctuating value. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost. Small and micro cap securities are subject to greater volatility than those in other asset categories. Value investing is subject to risk that may cause underperformance compared to other equity investment strategies. International and emerging markets investing involves special risks such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks. The fund prospectuses contain more information about investment risks. There is no guarantee of strategy success.
Diversification neither assures a profit nor guarantees against loss in a declining market.