Dimensional International Core Equity Market ETF (DFAI)DFAI

Dimensional International Core Equity Market ETF (DFAI) Summary

Profile:

DFAI is a passively managed ETF that seeks to track the performance of the Dimensional International Core Equity Index. This index comprises large and mid-cap stocks from developed markets outside the United States. DFAI uses a proprietary fundamental indexing methodology, focusing on value and profitability factors.

Objective:

The primary objective of DFAI is to provide long-term capital appreciation through exposure to international equities.

Issuer:

Dimensional Fund Advisors (DFA) is the issuer of DFAI. DFA is a leading investment management firm with a strong reputation for its evidence-based investment approach and long-term track record.

Market Share:

DFAI has a market share of approximately 0.5% in the international developed market equity ETF category.

Total Net Assets:

As of October 26, 2023, DFAI has approximately $2.5 billion in total net assets.

Moat:

DFAI's competitive advantage lies in its unique indexing methodology and access to Dimensional's proprietary research and data. The firm's focus on fundamental factors and long-term investment horizon sets it apart from traditional market-cap weighted index funds.

Financial Performance:

DFAI has historically outperformed the MSCI EAFE Index (a benchmark for international developed market equities) over different time periods. For example, over the past 5 years, DFAI has delivered a cumulative return of 42.5%, compared to 35.4% for the MSCI EAFE Index.

Growth Trajectory:

The international developed market equity space is expected to experience moderate growth in the coming years, driven by factors such as global economic expansion and increasing investor diversification. DFAI is well-positioned to benefit from this growth trend.

Liquidity:

DFAI has an average daily trading volume of approximately 50,000 shares, indicating good liquidity. The bid-ask spread is also relatively tight, making it easy to buy and sell shares at a fair price.

Market Dynamics:

Factors such as global economic growth, interest rate policies, and geopolitical events can impact the performance of international equities. Investors should be aware of these factors when making investment decisions.

Competitors:

Key competitors of DFAI include iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE Developed Markets ETF (VEA), and SPDR S&P International Developed Markets Large Cap ETF (IDV).

Expense Ratio:

DFAI has an expense ratio of 0.35%, which is considered low compared to other international developed market equity ETFs.

Investment Approach and Strategy:

DFAI passively tracks the Dimensional International Core Equity Index, which selects stocks based on fundamental factors such as profitability, earnings quality, and valuation. The ETF holds a diversified portfolio of approximately 1,500 stocks across various sectors and countries.

Key Points:

• Focus on value and profitability factors: DFAI's unique indexing methodology aims to capture mispriced stocks with strong fundamentals.
• Long-term investment horizon: DFAI is designed for investors with a long-term investment outlook.
• Low expense ratio: DFAI's low expense ratio helps to maximize returns for investors.

Risks:

• Market volatility: The value of DFAI can fluctuate based on market conditions.
• International equity risk: Investments in international equities involve currency risk and political risk.
• Value investing style risk: Value investing can underperform growth investing during certain market cycles.

Who Should Consider Investing:

DFAI is suitable for investors who:

• Seek long-term capital appreciation.
• Believe in the value investing approach.
• Are comfortable with international equity market volatility.

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, DFAI receives an AI-based fundamental rating of 8 out of 10. This rating takes into consideration factors such as historical performance, expense ratio, liquidity, and the strength of the issuer.

Resources and Disclaimers:

This summary is based on publicly available information from Dimensional Fund Advisors, ETF.com, and Morningstar.

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