Dimensional’s ETF Business Marks Three-Year Anniversary with Broad Adoption across Suite
Dimensional Fund Advisors, a global leader in systematic investing, approaches the three-year anniversary of the launch of its exchange-traded funds (ETFs) business with positive net flows across all 35 of its ETFs. The firm’s ETF assets under management (AUM) have risen to approximately $100 billion during that time, establishing Dimensional as the industry leader in active ETFs and eighth-largest overall global issuer by AUM.
“We built our ETF offering in close conversation with the investment professionals we serve and have specifically designed these funds to meet diverse portfolio needs over time,” said Co-CEO and Chief Investment Officer Gerard O’Reilly. “The resulting suite offers a range of thoughtfully constructed funds spanning global equity, global fixed income, and global real estate markets, offering marketwide and more targeted style and market segment solutions.”
Dimensional’s active transparent ETFs offer the benefits of indexing—such as low fees, low turnover, and broad diversification—paired with flexible implementation that enables a more consistent focus on pursuing higher expected returns and managing risk. The firm makes innovative use of cash flows to help enable low-cost and tax-efficient rebalancing.
“We celebrate the three-year milestone alongside the financial professionals we have been privileged to work with over the last 40 years,” said Co-CEO Dave Butler. “We are committed to providing advisors and institutions with more choice and the ability to better tailor allocations to investors’ unique needs.”
Dimensional became the largest active issuer in the ETF market in the first quarter of 2022 and has continuously refined its management processes and fund lineup to enhance the firm’s offering. The broad adoption of Dimensional’s ETF suite includes $57.5 billion in net new ETF fund flows since the launch of the business in November 2020 and nearly $22 billion in ETF flows in 2023.1
Dimensional plans to list three more ETFs in coming months while also continuing to advocate for investor choice with its application to the SEC for ETF share class exemptive relief.
More information about Dimensional ETFs can be found here: 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 14 global offices across North America, Europe, Asia, and Australia. As of September 30, 2023, Dimensional manages $618 billion for investors worldwide. For more information, please visit dimensional.com.
Footnotes
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1Both figures are as of September 29, 2023.
Disclosures
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.
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.
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. Brokerage commissions and expenses will reduce returns.