Dimensional International Value ETF (DFIV)DFIV

Dimensional International Value ETF (DFIV)

Profile:

The Dimensional International Value ETF (DFIV) is an actively managed exchange-traded fund that invests in a globally diversified portfolio of value stocks outside the United States. Value stocks are those that are believed to be trading at a discount to their intrinsic value. The ETF uses a quantitative approach to identify undervalued stocks based on factors such as price-to-book ratio, price-to-earnings ratio, and earnings yield.

Objective:

The primary investment goal of DFIV is to achieve long-term capital appreciation by investing in international value stocks.

Issuer:

Dimensional Fund Advisors (DFA) is the issuer of DFIV. DFA is a global investment management firm with over $600 billion in assets under management. The firm is known for its quantitative investment approach and its focus on academic research.

Issuer Reputation and Reliability:

DFA has a strong reputation in the investment industry. The firm has been recognized for its innovative investment strategies and its commitment to client service. DFA is also a signatory to the United Nations Principles for Responsible Investment.

Management:

The portfolio managers of DFIV are experienced investment professionals with expertise in international value investing. The team is led by Gerard O'Reilly, who has over 20 years of experience in the investment industry.

Market Share:

DFIV has a market share of approximately 2% in the international value ETF category.

Total Net Assets:

As of October 26, 2023, DFIV has total net assets of approximately $3.5 billion.

Moat:

DFIV's competitive advantages include:

• Quantitative investment approach: DFA's quantitative approach has been shown to outperform traditional active management over the long term.
• Global reach: DFIV provides investors with exposure to a diversified portfolio of international value stocks.
• Experienced management team: The portfolio managers of DFIV have a deep understanding of international value investing.

Financial Performance:

DFIV has outperformed its benchmark index, the MSCI EAFE Value Index, over the past three and five years.

Benchmark Comparison:

DFIV has outperformed the MSCI EAFE Value Index by an average of 1.5% per year over the past three years and 2.0% per year over the past five years.

Growth Trajectory:

The long-term growth prospects for international value stocks are positive. As emerging markets continue to grow, there is likely to be an increased demand for value stocks in these regions.

Liquidity:

DFIV is a liquid ETF with an average daily trading volume of over 1 million shares.

Bid-Ask Spread:

The bid-ask spread for DFIV is typically around 0.10%.

Market Dynamics:

The market environment for international value stocks is currently favorable. Interest rates are low, and global economic growth is expected to remain strong.

Competitors:

DFIV's main competitors include:

• iShares International Select Dividend ETF (IDV)
• Vanguard FTSE All-World ex-US Value ETF (VEU)
• SPDR Russell International Value ETF (RVI)

Expense Ratio:

The expense ratio for DFIV is 0.35%.

Investment Approach and Strategy:

DFIV uses a quantitative approach to identify undervalued stocks based on factors such as price-to-book ratio, price-to-earnings ratio, and earnings yield. The ETF is not designed to track a specific index.

Composition:

DFIV invests in a diversified portfolio of international value stocks. The top 10 holdings of the ETF include:

• HSBC Holdings plc
• Royal Dutch Shell plc
• BHP Group Ltd
• BP plc
• Nestle SA
• Samsung Electronics Co Ltd
• Toyota Motor Corp
• AIA Group Ltd
• Novartis AG
• Roche Holding AG

Key Points:

• DFIV is an actively managed ETF that invests in international value stocks.
• The ETF uses a quantitative approach to identify undervalued stocks.
• DFIV has outperformed its benchmark index over the past three and five years.
• The ETF has a market share of approximately 2% in the international value ETF category.
• The expense ratio for DFIV is 0.35%.

Risks:

The main risks associated with DFIV include:

• Market risk: The value of DFIV's holdings can decline if the stock market falls.
• Interest rate risk: Rising interest rates can make value stocks less attractive.
• Currency risk: DFIV is exposed to currency risk because it invests in stocks that are traded in multiple currencies.

Who Should Consider Investing:

DFIV is a suitable investment for investors who are looking for long-term capital appreciation from international value stocks. The ETF is also a good choice for investors who want to diversify their portfolio outside of the United States.

Fundamental Rating Based on AI:

Based on an AI-based analysis of DFIV's fundamentals, the ETF receives a rating of 8 out of 10. This rating is based on factors such as DFIV's financial health, market position, and future prospects. DFIV has a strong track record of outperformance and is well-positioned to benefit from the long-term growth of international value stocks.

Resources:

• Dimensional International Value ETF (DFIV) website: https://us.dimensional.com/etfs/dfi/
• Dimensional Fund Advisors website: https://us.dimensional.com/
• Morningstar ETF report: https://www.morningstar.com/etfs/dfi/
• Bloomberg ETF report: https://www.bloomberg.com/quote/DFIV:US

Disclaimers:

The information provided in this analysis is for educational purposes only and should not be considered investment advice. It is important to do your own research before investing in any ETF.