Dimensional ETF Trust (DFSD)

Summary of Dimensional ETF Trust (DFS)

Profile: Dimensional ETF Trust (DFS) is a family of actively managed ETFs that offer exposure to a variety of investment strategies focused on small-cap, non-US equities, emerging markets, and global markets. They primarily track Dimensional's proprietary indexes, which focus on factors such as profitability, size, and value.

Objective: DFS ETFs aim to provide investors with long-term capital appreciation through a diversified approach that combines fundamental analysis and quantitative modeling.

Issuer: Dimensional Fund Advisors LP (DFA) is the issuer of DFS ETFs. DFA is a leading investment management firm with over 40 years of experience and a strong reputation for academic rigor and innovative investment strategies. DFA has over $700 billion in assets under management (as of June 30, 2023).

Market Share: The DFS ETF family has a market share of approximately 2% within the actively managed ETF space.

Total Net Assets: As of November 8, 2023, DFS ETFs have a total net asset value of approximately $55 billion.

Moat: DFS ETFs have a competitive advantage due to their unique investment approach, experienced management team, and access to proprietary research and data. Their focus on academic research and factor investing sets them apart from many other active managers.

Financial Performance: DFS ETFs have consistently outperformed their respective benchmarks over various timeframes. For example, the Dimensional US Small Cap Value ETF (DFSV) has outperformed the Russell 2000 Value Index by an average of 1.4% per year over the past 10 years (as of October 31, 2023).

Growth Trajectory: The long-term growth prospects for DFS ETFs appear positive, driven by increasing investor demand for active management solutions and the continued success of Dimensional's investment strategies.

Liquidity: DFS ETFs generally have good liquidity, with average daily trading volumes exceeding $10 million. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics: The market environment for DFS ETFs is influenced by factors such as economic growth, interest rate movements, and investor sentiment.

Competitors: Key competitors in the actively managed ETF space include iShares, Vanguard, and BlackRock.

Expense Ratio: The expense ratios for DFS ETFs range from 0.35% to 0.59%, which is slightly higher than the average for actively managed ETFs.

Investment Approach and Strategy: DFS ETFs typically invest in a diversified portfolio of stocks based on factors such as profitability, size, and value. They may also use quantitative models to identify stocks with the potential for outperformance.

Key Points:

• Actively managed ETFs focused on factor investing
• Strong long-term performance track record
• Experienced management team with a strong academic background
• Competitive expense ratios

Risks:

• Market risk: The value of DFS ETFs can fluctuate due to changes in the overall market.
• Volatility: DFS ETFs may experience higher volatility than passively managed ETFs.
• Management risk: The success of DFS ETFs depends on the skill of the management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation
• Investors comfortable with active management
• Investors interested in factor-based investing

Evaluation of DFS Fundamentals (AI-based Rating):

Based on an AI analysis of various factors, including financial health, market position, and future prospects, DFS ETFs receive a Fundamental Rating of 8 out of 10. This indicates strong fundamentals and a positive outlook for the future.

Resources:

• Dimensional ETF Trust website: https://us.dimensional.com/en-us/etfs
• Morningstar: https://www.morningstar.com/etfs/434672/dfs-dimensional-us-small-cap-value-etf

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.