Pensions & Investments: Dimensional Co-CIO Talks ETFs and Going Beyond Indexing


During a recent interview with Pensions & Investments (P&I), Dimensional Co-Chief Investment Officer and Global Head of Research Savina Rizova discussed a variety of investment topics, including the 2020 launch of the firm’s active ETF offering and its subsequent growth.

Rizova also shared how Dimensional goes beyond the limitations that often come with traditional index investing. “It’s become the easy button, but it’s not the right button for all clients,” she said. “At Dimensional, we believe low costs are important in indexing. However, indexing does leave money on the table.”

In contrast to the rigidity of indexing, Dimensional takes a systematic approach with a daily process that provides flexibility, she said.

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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.

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 ETF expenses will reduce returns.


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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.