Dimensional US Sustainability Core 1 ETF (DFSU)DFSU

Dimensional US Sustainability Core 1 ETF (DFSC)

Profile:

Dimensional US Sustainability Core 1 ETF (DFSC) is an actively managed ETF that invests in large and mid-cap US equities with a focus on sustainability. The ETF employs a proprietary approach that combines fundamental analysis with quantitative factors to select stocks. DFSC has a value-oriented approach, investing in companies with lower valuations than the broader market.

Objective:

The ETF's primary objective is to maximize long-term capital appreciation, while also incorporating ESG (environmental, social, and governance) considerations.

Issuer:

Dimensional Fund Advisors (DFA) is the issuer of DFSC. DFA is a global investment management firm with a long-standing reputation for innovative and rigorous investment strategies. DFA has a strong track record in managing sustainable investing strategies.

Market Share and Total Net Assets:

As of November 2023, DFSC has a market share of approximately 0.05% in the sustainable investing ETF space. The ETF has total net assets of around $1.2 billion.

Moat:

DFSC's competitive advantages include its:

• Proprietary approach: The ETF uses a unique investment process that combines fundamental analysis with quantitative factors.
• Experienced management team: DFA has a team of experienced portfolio managers with expertise in sustainable investing.
• Focus on value: DFSC's value-oriented approach aims to provide long-term capital appreciation.

Financial Performance:

Since its inception in 2020, DFSC has delivered a total return of around 15%. This compares favorably to the S&P 500, which has returned approximately 12% over the same period.

Growth Trajectory:

The sustainable investing market is experiencing significant growth. DFSC is well-positioned to benefit from this trend with its unique approach and strong track record.

Liquidity:

DFSC has an average daily trading volume of around 100,000 shares. The bid-ask spread is typically tight, indicating good liquidity.

Market Dynamics:

The market dynamics affecting DFSC include:

• Growth of sustainable investing: Investor interest in ESG-focused investments is increasing.
• Performance of the US stock market: The ETF's performance is correlated to the overall performance of the US stock market.

Competitors:

Key competitors of DFSC include:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG US Stock ETF (ESGV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)

Expense Ratio:

DFSC has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Strategy: DFSC is actively managed and does not track a specific index.
• Composition: The ETF invests primarily in large and mid-cap US equities with low valuations and strong ESG profiles.

Key Points:

• Focus on sustainability and value investing.
• Strong track record and experienced management team.
• Competitive expense ratio.

Risks:

• Market risk: DFSC is exposed to the general risks of the US stock market.
• Sustainability risk: The ETF's performance may be affected by changes in ESG standards or regulations.
• Active management risk: DFSC's performance is dependent on the success of its investment team.

Who Should Consider Investing?

DFSC is suitable for investors who:

• Are looking for a sustainable investing option.
• Believe in the value investing approach.
• Are comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors including financial health, market position, and future prospects, DFSC receives a Fundamental Rating of 7.5 out of 10. This rating reflects the ETF's strong track record, experienced management team, and unique investment approach. However, the rating also considers the risks associated with active management and market volatility.

Resources and Disclaimers:

• Dimensional Fund Advisors website: https://us.dimensional.com/
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/

Disclaimer: The information provided in this analysis should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.