Dimensional ETF Trust - Dimensional Emerging Markets Core Equity 2 ETF (DFEM)

ETF Dimensional ETF Trust - Dimensional Emerging Markets Core Equity 2 ETF

Profile:

This ETF focuses on investing in large and mid-cap equity securities of companies located in emerging markets. It follows a passive management style and tracks the Dimensional Emerging Core Equity Index. The ETF seeks to provide broad exposure to the emerging markets equity universe while minimizing unnecessary transaction costs.

Objective:

The primary goal of this ETF is to track the performance of the Dimensional Emerging Core Equity Index, which represents a diversified portfolio of large and mid-cap stocks in emerging markets. It aims to achieve long-term capital appreciation by investing in a diversified portfolio of emerging market equities.

Issuer:

Dimensional Fund Advisors (DFA)

Reputation and Reliability: DFA is a well-established and reputable asset management firm with a long history of providing investment solutions to institutional and individual investors. Founded in 1981, the firm is known for its quantitative investment approach and focus on factor investing.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in emerging market equities. The team utilizes DFA's proprietary research and investment models to select and weight the securities within the portfolio.

Market Share:

This ETF holds a relatively small market share within the emerging market equity ETF space. However, it has experienced consistent growth in assets under management in recent years.

Total Net Assets:

As of October 26, 2023, the ETF has approximately $1.2 billion in total net assets.

Moat:

The ETF's competitive advantage lies in its access to DFA's proprietary research and investment models. These models are based on decades of academic research and aim to identify factors that drive long-term returns in various asset classes.

Financial Performance:

The ETF has historically outperformed its benchmark index, the MSCI Emerging Markets Index, over various time periods.

Benchmark Comparison:

The ETF has consistently outperformed the MSCI Emerging Markets Index, with a higher total return and lower volatility.

Growth Trajectory:

The ETF has experienced steady growth in assets under management, indicating increasing investor interest in its investment approach.

Liquidity:

The ETF has a moderate average trading volume, ensuring reasonable liquidity for investors.

Bid-Ask Spread:

The ETF has a relatively tight bid-ask spread, suggesting low trading costs.

Market Dynamics:

The ETF's performance is influenced by various factors, including global economic conditions, emerging market growth prospects, and investor sentiment.

Competitors:

• iShares Core MSCI Emerging Markets IMI ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• SPDR Portfolio Emerging Markets ETF (SPEM)

Expense Ratio:

The ETF has an expense ratio of 0.35%, which is considered competitive within its category.

Investment Approach and Strategy:

Strategy: The ETF passively tracks the Dimensional Emerging Core Equity Index.

Composition: The ETF invests in a diversified portfolio of large and mid-cap stocks in emerging markets.

Key Points:

• Focuses on large and mid-cap emerging market equities.
• Tracks the Dimensional Emerging Core Equity Index.
• Aims for long-term capital appreciation.
• Managed by Dimensional Fund Advisors.
• Competitive expense ratio.

Risks:

• Emerging market volatility.
• Currency risk.
• Political and economic risks in emerging markets.

Who Should Consider Investing:

This ETF is suitable for investors seeking long-term exposure to emerging market equities with a focus on factor investing. Investors should be comfortable with the potential for higher volatility associated with emerging markets.

Fundamental Rating Based on AI:

8/10

This ETF receives a high rating based on its strong track record, competitive expense ratio, and access to DFA's proprietary research and investment models. However, investors should carefully consider the risks associated with emerging markets before investing.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Dimensional Fund Advisors website
• ETF.com
• Morningstar

This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.