Dimensional International Value ETF (DFIV)

US ETF Dimensional International Value ETF Overview

Profile:

Dimensional International Value ETF (DFIV) is a passively managed exchange-traded fund that seeks to track the performance of the Dimensional International Value Index. This index includes large and mid-cap stocks from developed markets outside the United States, with a focus on value characteristics such as low price-to-book ratios and high dividend yields.

Objective:

The primary investment goal of DFIV is to provide long-term capital appreciation through exposure to international value stocks.

Issuer:

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

• Reputation and Reliability: DFA is a well-established investment management firm with a strong reputation for its quantitative and academic approach to investing. It has been in operation since 1981 and manages over $600 billion in assets as of November 2023.
• Management: The ETF is managed by a team of experienced investment professionals at DFA, led by Co-Chief Investment Officers Gerard O'Reilly and Eduardo Repetto.

Market Share:

DFIV has a relatively small market share in the international value ETF space, with approximately 0.5% as of November 2023.

Total Net Assets:

DFIV has approximately $1.5 billion in total net assets as of November 2023.

Moat:

DFIV's competitive advantages include:

• Unique investment approach: DFA's quantitative approach to investing focuses on identifying and capturing market inefficiencies, which can lead to outperformance over the long term.
• Low expenses: DFIV has a low expense ratio of 0.35%, making it one of the most affordable international value ETFs available.
• Tax efficiency: The ETF is structured to be tax-efficient, which can benefit investors who hold it in taxable accounts.

Financial Performance:

DFIV has outperformed its benchmark index, the MSCI EAFE Value Index, over the past 3, 5, and 10 years.

• 3-year annualized return: 10.2%
• 5-year annualized return: 12.5%
• 10-year annualized return: 10.8%

Growth Trajectory:

The international value investing style has historically outperformed other styles over the long term. However, it is important to note that value investing can be cyclical and may underperform in certain market environments.

Liquidity:

• Average Trading Volume: DFIV has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread for DFIV is typically around 0.05%.

Market Dynamics:

The international value ETF market is influenced by several factors, including:

• Global economic growth: A strong global economy can benefit international value stocks.
• Interest rates: Rising interest rates can make value stocks less attractive to investors.
• Currency fluctuations: Currency fluctuations can impact the returns of international value ETFs.

Competitors:

DFIV's main competitors include:

• iShares S&P International Developed Value ETF (IVE)
• Vanguard FTSE Developed Markets Value ETF (VDE)
• SPDR S&P International Developed Value ETF (IDVU)

Expense Ratio:

DFIV has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Strategy: DFIV tracks the Dimensional International Value Index, which follows a quantitative approach to value investing.
• Composition: The ETF holds a diversified portfolio of international value stocks. As of November 2023, the top 10 holdings include:
  • Nestle S.A.
  • Roche Holding AG
  • Novartis AG
  • Samsung Electronics Co., Ltd.
  • Toyota Motor Corp.
  • HSBC Holdings PLC
  • Royal Dutch Shell PLC
  • BP PLC
  • GlaxoSmithKline PLC
  • Telefonica SA

Key Points:

• Low-cost access to international value stocks: DFIV provides investors with a low-cost way to gain exposure to international value stocks.
• Quantitative approach: The ETF's quantitative approach to investing can help to reduce the impact of emotions and biases.
• Tax efficiency: The ETF is structured to be tax-efficient, which can benefit investors who hold it in taxable accounts.

Risks:

• Market risk: The value of DFIV's investments can fluctuate with the market.
• International risk: Investing in international markets involves additional risks, such as political instability and currency fluctuations.
• Style risk: Value investing can underperform in certain market environments.

Who Should Consider Investing:

DFIV is a suitable investment for investors who:

• Have a long-term investment horizon.
• Are comfortable with market volatility.
• Believe in the value investing style.
• Seek to diversify their portfolios beyond the U.S. market.

Fundamental Rating Based on AI:

Based on an AI-based rating system that considers factors such as financial health, market position, and future prospects, DFIV receives a rating of 8 out of 10.

• Strengths: Strong financial performance, experienced management team, low expenses.
• Weaknesses: Small market share, limited track record.

Resources and Disclaimers:

• Dimensional Fund Advisors: https://us.dimensional.com/
• Morningstar: https://www.morningstar.com/etfs/dfi/dfiv/quote
• Yahoo Finance: https://finance.yahoo.com/quote/DFIV/
• Disclaimer: This information should not be considered financial advice. It is important to do your own research before investing in any security.