Dimensional International Sustainability Core 1 ETF (DFSI)

Overview

The Dimensional International Sustainability Core 1 ETF (DFSU) aims to provide long-term capital appreciation by investing in a broad range of international developed market companies, with an emphasis on sustainability factors. It seeks to outperform the broad international developed market, using a market-cap-weighted approach while excluding companies with high carbon emissions or involvement in controversial industries.

Reputation and Reliability

Dimensional Fund Advisors (DFA) is a well-regarded investment firm known for its systematic, research-driven approach to investing.

Management Expertise

DFA has a team of experienced investment professionals with expertise in quantitative investing and sustainable investing.

Goal

To provide long-term capital appreciation by investing in a broad range of international developed market companies with an emphasis on sustainability.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but utilizes a market-cap-weighted approach that incorporates sustainability considerations.

Composition The ETF primarily holds stocks of companies located in developed international markets, excluding companies with high carbon emissions or involvement in controversial industries. It may hold a small percentage of cash or cash equivalents.

Market Share: DFSU is a relatively new ETF and its market share is still developing within the international sustainable equity ETF category.

Total Net Assets (AUM): 382000000

Key Competitors

• VEU
• VXUS
• ESGU
• IXUS

Competitive Landscape

The international equity ETF market is highly competitive. DFSU differentiates itself through its focus on sustainability factors within the Dimensional Fund Advisors' systematic investing approach. It faces competition from broad market ETFs that don't focus on sustainability like VEU and VXUS, and ESG-focused competitors like ESGU. DFSU's advantage lies in DFA's investment methodology, but it is disadvantaged by lower brand awareness and a shorter track record compared to the larger competitors.

Historical Performance: Historical performance data needs to be updated. Please consult current financial resources for updated data.

Benchmark Comparison: Performance is compared to international market benchmarks. Consult current financial resources for updated data.

Expense Ratio: 0.09

Average Trading Volume

The ETF's average trading volume is moderate, reflecting its growing popularity but still relatively small size.

Bid-Ask Spread

The bid-ask spread is generally tight, indicating good liquidity and lower trading costs.

Market Environment Factors

Economic indicators in developed international markets, investor sentiment towards ESG investing, and global trade dynamics influence DFSU's performance.

Growth Trajectory

DFSU's growth is tied to increasing investor interest in sustainable investing and DFA's ability to attract assets. Any shifts in DFA's investment strategy or changes to holdings to align with sustainability goals could impact its trajectory.

Competitive Edge

DFSU benefits from Dimensional Fund Advisors' established reputation and research-driven approach. Its focus on sustainability allows it to cater to environmentally and socially conscious investors. The systematic investment approach can offer a level of consistency. The combination of sustainability criteria and a well-defined investment process can be an advantage in attracting investors seeking both financial returns and positive social impact.

Volatility

The ETF's volatility is typical for international equity investments, influenced by global market events and economic conditions.

Market Risk

Market risk includes fluctuations in international equity markets, currency risk, and political risks associated with investing in foreign countries. Specific ESG criteria introduces sector concentration risks.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation through international equity exposure and has a strong interest in sustainable and responsible investing. It may be appropriate for those with a moderate to high-risk tolerance.

Market Risk

This ETF is suitable for long-term investors and passive index followers who prioritize sustainability factors in their portfolio.

Dimensional International Sustainability Core 1 ETF (DFSU) offers exposure to international developed market equities with a sustainability focus, leveraging Dimensional Fund Advisors' quantitative investment methodology. It aims to provide long-term capital appreciation and appeals to investors seeking both financial returns and alignment with ESG principles. Its growth is dependent on attracting assets from sustainably conscious investors, while balancing its ESG approach with the volatility of international equity markets. While it faces competition from larger, established ETFs, DFSU aims to differentiate itself through its focus on sustainability factors within the Dimensional Fund Advisors' systematic investing approach.

Data Sources:

• Dimensional Fund Advisors
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Market share data is estimated and may not be precise.