What You Need to Know
- They are the Dimensional International Value ETF and World ex US Core Equity 2 ETF.
- DFA has converted six active mutual funds to six active ETFs, and all are fully transparent.
- It now has nine active ETFs with total assets of more than $40 billion. Conversions represent 20% of assets.
Dimensional Fund Advisors has converted two more actively managed mutual funds to ETFs, bringing the total number of DFA fund conversions to six, covering more than $8 billion in assets.
The two new ETFs are the Dimensional International value ETF (DIV) and the Dimensional DFA World ex US Core Equity 2 ETF (DFAX), with total operating expenses of 0.35% and 0.31%, respectively. Both ETFs trade on the NYSE Arca exchange. They complete the firm’s plans, announced in November 2020, to convert six actively managed mutual funds to ETFs. It converted four tax-managed active mutual funds to ETFs this past June.
“Today’s listing further demonstrates our commitment to providing the financial professionals we work with a full suite of ETFs that complement our mutual fund and expanded separately managed accounts offerings,” Dimensional Co-CEO and Chief Investment Officer Gerard O’Reilly said in a statement.
“Our strategies go beyond the cost efficiency and high diversification of passive indexing. They have the added benefits of daily, flexible implementation, which aim to deliver higher expected returns and support robust risk management.”