Dimensional U.S. Core Equity 2 ETF (DFAC)DFAC

ETF Dimensional U.S. Core Equity 2 ETF (DFAC) Overview

Profile:

Dimensional U.S. Core Equity 2 ETF (DFAC) is a passively managed ETF that seeks to track the performance of the Dimensional US Core Equity 2 Index. The ETF invests in a diversified portfolio of large- and mid-cap U.S. stocks with a focus on value and profitability factors.

Objective:

The primary investment goal of DFAC is to provide long-term capital appreciation through exposure to a diversified portfolio of U.S. equities with a value and profitability tilt.

Issuer:

Dimensional Fund Advisors (DFA) is the issuer of DFAC.

Reputation and Reliability: DFA is a well-respected investment management firm with a long history of success. The firm is known for its rigorous research and evidence-based investment approach.

Management: The ETF is managed by a team of experienced portfolio managers at DFA. The team has a deep understanding of the academic literature on investing and uses that knowledge to develop and implement the firm's investment strategies.

Market Share:

DFAC has a relatively small market share within the large-cap value ETF category. However, the ETF has experienced strong growth in recent years.

Total Net Assets:

As of November 1, 2023, DFAC has approximately $7.5 billion in total net assets.

Moat:

Unique Strategy: DFAC employs a unique investment strategy that focuses on value and profitability factors. This approach has been shown to outperform traditional market-cap weighted indices over the long term.

Superior Management: DFA is known for its experienced and talented management team. The team has a strong track record of success in managing actively managed funds.

Financial Performance:

DFAC has outperformed the S&P 500 Index on a risk-adjusted basis over the past 5 and 10 years.

Benchmark Comparison:

DFAC has outperformed its benchmark, the Dimensional US Core Equity 2 Index, over the past 5 and 10 years.

Growth Trajectory:

DFAC has experienced strong growth in recent years. However, the ETF's future growth will depend on market conditions and investor demand.

Liquidity:

Average Trading Volume: DFAC has an average trading volume of over 100,000 shares per day.

Bid-Ask Spread: The bid-ask spread for DFAC is typically less than 0.10%.

Market Dynamics:

The performance of DFAC is affected by factors such as economic growth, interest rates, and investor sentiment.

Competitors:

Key competitors of DFAC include:

• iShares S&P 500 Value ETF (IVE)
• Vanguard Value ETF (VTV)
• Schwab U.S. Large-Cap Value ETF (SCHV)

Expense Ratio:

The expense ratio for DFAC is 0.15%.

Investment Approach and Strategy:

• Strategy: DFAC is a passively managed ETF that tracks the Dimensional US Core Equity 2 Index.
• Composition: The ETF invests in a diversified portfolio of large- and mid-cap U.S. stocks with a focus on value and profitability factors.

Key Points:

• DFAC is a passively managed ETF that seeks to track the performance of the Dimensional US Core Equity 2 Index.
• The ETF invests in a diversified portfolio of large- and mid-cap U.S. stocks with a focus on value and profitability factors.
• DFAC has outperformed the S&P 500 Index on a risk-adjusted basis over the past 5 and 10 years.
• The ETF has an expense ratio of 0.15%.

Risks:

• DFAC is subject to the risks of investing in the stock market, including market volatility and potential losses.
• The ETF's focus on value and profitability factors could lead to underperformance in certain market conditions.

Who Should Consider Investing:

DFAC is a suitable investment for investors who are seeking long-term capital appreciation through exposure to a diversified portfolio of U.S. equities with a value and profitability tilt.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, DFAC receives a Fundamental Rating of 8 out of 10. The ETF has a strong track record, a solid investment approach, and a competitive expense ratio. However, investors should be aware of the risks associated with investing in the stock market.

Resources and Disclaimers:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Sources:

• Dimensional Fund Advisors
• Morningstar
• ETF.com

Disclaimers:

• The information provided in this analysis is based on data available as of November 1, 2023.
• The AI-based Fundamental Rating is an objective assessment based on the available data and should not be considered a guarantee of future performance.
• Past performance is not indicative of future results.