Dimensional Expands Wealth Model Offering with Four ETF Model Sets
Dimensional Fund Advisors, a global leader in systematic investing, today announced enhancements to its Wealth Models offering to include additional exchange-traded fund (ETF) allocations. These models offer financial advisors the ability to create portfolios using Dimensional’s systematic, active ETFs with four types of asset allocations, including a tax-sensitive option. Dimensional has rapidly grown its ETF offering since first introducing these solutions in November 2020. The firm now offers 24 ETFs invested across global equities and fixed income markets, which have made Dimensional the largest active and 10th-largest overall ETF issuer globally by AUM.
“Dimensional applies a robust framework and thoughtful implementation to asset allocations and seeks to continually improve our offering of holistic investment solutions tailored to different investor goals, needs, and preferences,” said Savina Rizova, Global Head of Research. “Dimensional’s ETF Wealth Models integrate the firm’s 40-year track record in markets and reliably pursue higher expected returns without resorting to capital markets assumptions or opaque techniques.”
Dimensional Wealth Models are strategic asset allocation models made up of Dimensional funds. They are designed to put rigorous theoretical and empirical research to work across an investor’s portfolio. Each guidance model set offers allocations ranging from 100% equity to 100% fixed income, in increments of 20%, with four new ETF allocations: Core Market, Core, Core Plus, and Tax-Sensitive. The introduction of ETF model sets provides further choice for advisors looking to incorporate Dimensional’s investment expertise within clients’ portfolios.
Dimensional Core Market and Core Wealth Models use the firm’s core equity strategies, which combine an all-market investment universe with tilts toward long-term drivers of higher expected returns.1 Dimensional Core Plus Wealth Models add component equity strategies with a stronger emphasis on these return drivers. Dimensional Tax-Sensitive Wealth Models seek to improve after-tax returns using various tax-advantaged strategies, such as focusing on municipal bonds in fixed income allocations.
“For four decades, Dimensional has been refining its investment research and implementation processes to help financial professionals design and deliver reliable investment solutions for their clients,” said Bryce Skaff, Co-Head of Dimensional’s Global Client Group. “Our ETF Wealth Models are designed to provide financial advisors efficient asset allocation tools so they can spend more time focusing on the broader wealth needs of their clients and growing their businesses.”
Footnotes
- 1The percentage increase in value a person may anticipate from an investment based on the level of risk associated with the investment, calculated as the mean value of the probability distribution of possible returns.
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