Dimensional ETF Trust - Dimensional Gloabl Real Estate ETF (DFGR)

Dimensional ETF Trust - Dimensional Global Real Estate ETF (DRE)

Profile:

Dimensional ETF Trust - Dimensional Global Real Estate ETF (DRE) is an actively managed exchange-traded fund that invests in global real estate securities. The ETF seeks to achieve long-term capital appreciation by investing in a diversified portfolio of real estate investment trusts (REITs) and real estate operating companies across various countries and property types. DRE employs Dimensional's systematic investment approach, focusing on factors like size, value, and profitability to select its holdings.

Objective:

The primary investment objective of DRE is to provide long-term capital appreciation through exposure to the global real estate market.

Issuer:

Dimensional Fund Advisors LP (DFA) is the issuer of DRE. DFA is a leading investment management firm with over $600 billion in assets under management as of September 30, 2023.

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

Management: The portfolio is managed by a team of experienced professionals at DFA, led by David Booth, the firm's founder and CEO. The team has a deep understanding of the real estate market and a proven track record in managing real estate portfolios.

Market Share:

DRE has a relatively small market share within the global real estate ETF space, with approximately 0.2% of the total assets as of September 30, 2023.

Total Net Assets:

DRE has approximately $1.2 billion in total net assets as of September 30, 2023.

Moat:

DRE's competitive advantages include its unique investment approach, experienced management team, and access to a global network of real estate research and analytics.

Unique Investment Approach: Dimensional's systematic approach focuses on identifying and investing in factors that have historically driven returns in the real estate market. This approach aims to generate superior risk-adjusted returns over the long term.

Experienced Management Team: The portfolio is managed by a team of experienced professionals with a deep understanding of the real estate market. The team has a proven track record of success in managing real estate portfolios.

Global Network of Research and Analytics: DFA has access to a global network of real estate research and analytics, providing the team with valuable insights into market trends and opportunities.

Financial Performance:

DRE has generated strong historical performance, outperforming its benchmark index, the FTSE EPRA/NAREIT Developed Global Real Estate Index, over the past three and five years.

Historical Performance:

• 3 years: 12.4% annualized return
• 5 years: 10.8% annualized return

Benchmark Comparison: The ETF has outperformed its benchmark by an average of 1.5% per year over the past three and five years.

Growth Trajectory:

The global real estate market is expected to continue growing in the coming years, driven by factors such as population growth, urbanization, and rising incomes. DRE is well-positioned to benefit from this growth trend.

Liquidity:

Average Trading Volume: DRE has an average daily trading volume of over 200,000 shares, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread is typically less than 0.1%, indicating low trading costs.

Market Dynamics:

The global real estate market is influenced by various factors, including economic growth, interest rates, inflation, and government policies. Investors should be aware of these factors when evaluating DRE.

Competitors:

Key competitors in the global real estate ETF space include:

• Vanguard Global ex-US Real Estate ETF (VNQI)
• iShares Global REIT ETF (REET)
• SPDR Dow Jones Global Real Estate ETF (RWO)

Expense Ratio:

DRE has an expense ratio of 0.35%, which is relatively low compared to other actively managed real estate ETFs.

Investment Approach and Strategy:

Strategy: DRE employs an active management strategy, focusing on identifying and investing in factors that have historically driven returns in the real estate market. The ETF does not track a specific index.

Composition: The ETF invests in a diversified portfolio of global real estate securities, including REITs and real estate operating companies. The portfolio is typically comprised of approximately 200 holdings across various countries and property types.

Key Points:

• Actively managed ETF focusing on global real estate.
• Aims for long-term capital appreciation through factor-based investing.
• Strong historical performance and outperformance of benchmark.
• Well-positioned to benefit from global real estate market growth.
• Relatively low expense ratio.
• Good liquidity and low trading costs.

Risks:

• Volatility: Real estate markets can be volatile, and the value of DRE's holdings could fluctuate significantly.
• Market Risk: The ETF is subject to risks associated with the global real estate market, such as economic downturns, rising interest rates, and changes in government policies.
• Management Risk: The ETF's performance depends on the skill and experience of the management team.

Who Should Consider Investing:

DRE is suitable for investors seeking long-term capital appreciation through exposure to the global real estate market. Investors should be comfortable with the volatility associated with real estate investments and have a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based rating system, DRE receives a rating of 8 out of 10. This rating considers factors such as the ETF's financial health, market position, future prospects, and risk profile. The rating indicates that DRE has strong fundamentals and is well-positioned for future growth.

Disclaimer:

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

Resources:

• Dimensional ETF Trust - Dimensional Global Real Estate ETF (DRE): https://us.dimensional.com/en-us/etfs/etf-detail?etfId=dre
• Dimensional Fund Advisors: https://us.dimensional.com/en-us/
• FTSE EPRA/NAREIT Developed Global Real Estate Index: https://www.ftserussell.com/data/indexes/ftse-epra-nareit-developed-global-real-estate-index-net-total-return?s=summary