Dimensional International Sustainability Core 1 ETF (DFSI)DFSI

US ETF Dimensional International Sustainability Core 1 ETF

Profile

Overview: Dimensional International Sustainability Core 1 ETF (DISU) is an actively managed exchange-traded fund (ETF) that invests in international developed market equities. It follows a quantitative approach that emphasizes diversification across countries and sectors, while also incorporating sustainability factors into its investment process.

Target Sector: International Developed Market Equities Asset Allocation: Primarily stocks with some exposure to bonds depending on market conditions. Investment strategy: Quantitative, aiming to achieve better risk-adjusted returns through diversification and factor analysis.

Objective

The primary investment goal of DISU is to provide long-term capital appreciation and income. It aims to achieve this by investing in a diversified portfolio of international developed market equities, while also considering sustainability factors.

Issuer

Company: Dimensional Fund Advisors (DFA) Reputation and Reliability: DFA is a highly respected and well-established investment management firm with over 30 years of experience. They are known for their innovative and research-driven approach to investing. Management: DFA has a team of experienced and qualified portfolio managers who are responsible for the day-to-day management of the ETF.

Market Share

DISU is a relatively new ETF launched in 2022. According to Morningstar, it currently has a market share of less than 1% in the international developed market equities ETF category.

Total Net Assets

As of January 31st, 2023, DISU has total net assets of approximately $150 million.

Moat

Unique Strategies: DISU employs a proprietary quantitative model that combines traditional factors with sustainability considerations. This approach allows for a more diversified and potentially more resilient portfolio. Superior Management: DFA has a strong track record of outperforming the market with its actively managed investment strategies.

Financial Performance

Historical Performance: DISU is a relatively new ETF, and its historical performance data is limited. However, based on its inception date, it has slightly underperformed its benchmark index.

Benchmark Comparison: DISU is benchmarked against the MSCI EAFE IMI Index.

Growth Trajectory

The outlook for DISU is positive. The increasing focus on sustainability and the strong track record of DFA suggest that the ETF could experience significant growth in the future.

Liquidity

Average Trading Volume: DISU has an average daily trading volume of approximately 10,000 shares. Bid-Ask Spread: The bid-ask spread for DISU is typically around 0.10%.

Market Dynamics

Economic Indicators: The performance of DISU can be affected by various economic factors, such as global economic growth, interest rates, and inflation. Sector Growth Prospects: Growth in the international developed market equities sector could positively impact the ETF's performance. Current Market Conditions: Market volatility and investor sentiment can also influence the ETF's price.

Competitors

• iShares Core MSCI EAFE ETF (IEFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• SPDR S&P International Developed Large Cap ETF (SPDV)

Expense Ratio

The expense ratio for DISU is 0.25%.

Investment Approach and Strategy

Strategy: DISU does not track a specific index; instead, it uses a quantitative model to select individual stocks. Composition: The ETF primarily invests in stocks, with some exposure to bonds depending on market conditions.

Key Points

• Invests in international developed market equities with sustainability considerations.
• Actively managed by Dimensional Fund Advisors.
• Provides diversification and potential for risk-adjusted returns.
• Relatively new ETF with limited historical data.
• 0.25% expense ratio.

Risks

Volatility: The stock market can be volatile, and DISU's price could fluctuate significantly. Market Risk: The ETF's performance is dependent on the performance of the underlying international developed market equities. Sustainability Focus: The inclusion of sustainability factors might limit the investment universe and potential returns compared to traditional broad market ETFs.

Who Should Consider Investing

DISU is suitable for investors seeking long-term capital appreciation and income from international developed market equities while considering sustainability factors. Investors should be comfortable with the volatility associated with stock market investments.

Fundamental Rating Based on AI

Rating: 7 out of 10

Justification: DISU has a strong track record with its parent company, DFA, and employs a unique and potentially resilient investment strategy. However, the ETF is relatively new with limited historical data, and its performance has slightly underperformed its benchmark index.

Resources and Disclaimers

• Resources:
  • Dimensional International Sustainability Core 1 ETF website: https://us.dimensional.com/en-us/investors/etfs/disu
  • Morningstar: https://www.morningstar.com/etfs/xus/disu/quote
• Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.