Dimensional U.S. Equity ETF (DFUS)

ETF Dimensional U.S. Equity ETF (DFUS)

Profile

Primary Focus: DFUS is a passively managed ETF that tracks the Dimensional U.S. Core Equity 2 Index. This index invests in approximately 4,000 U.S. equity securities selected based on fundamental factors such as size, value, and profitability.

Asset Allocation: The ETF's portfolio comprises approximately 98% U.S. equity securities and 2% other assets.

Investment Strategy: DFUS employs a systematic investment approach based on academic research. It selects stocks based on factors that have historically been associated with higher returns, such as size, value, and profitability.

Objective

DFUS aims to provide long-term capital appreciation by tracking the performance of the Dimensional U.S. Core Equity 2 Index.

Issuer

Dimensional Fund Advisors (DFA)

Reputation and Reliability: DFA is a leading investment management firm with over $600 billion in assets under management. The firm has a strong reputation for its academic approach to investing and its focus on long-term performance.

Management: DFA employs a team of experienced investment professionals with expertise in quantitative analysis and portfolio management. The firm's research team continuously develops and refines its investment strategies.

Market Share

DFUS has a market share of approximately 0.5% in the U.S. equity ETF market.

Total Net Assets

As of November 2023, DFUS has approximately $10 billion in total net assets.

Moat

Unique Investment Approach: DFUS's systematic and research-driven approach to investing differentiates it from many other U.S. equity ETFs.

Superior Management: DFA's team of experienced investment professionals provides the ETF with a competitive edge.

Niche Market Focus: DFUS focuses on a specific investment style, targeting investors seeking exposure to U.S. equities with a focus on fundamental factors.

Financial Performance

Historical Performance: Since its inception in 2007, DFUS has delivered an annualized return of approximately 10%, outperforming the S&P 500 Index by an average of 1% per year.

Benchmark Comparison: DFUS has consistently outperformed the S&P 500 Index over different time periods, demonstrating the effectiveness of its investment strategy.

Growth Trajectory

DFUS has experienced steady growth in its assets under management over the past few years, indicating increasing investor interest in its investment approach.

Liquidity

Average Trading Volume: DFUS has an average daily trading volume of approximately 200,000 shares, ensuring good liquidity for investors.

Bid-Ask Spread: The ETF's bid-ask spread is typically tight, reflecting its high liquidity.

Market Dynamics

Economic Indicators: Strong economic growth and rising corporate profits have supported the U.S. equity market in recent years, benefiting DFUS.

Sector Growth Prospects: The sectors represented in DFUS's portfolio, such as technology and healthcare, have strong growth prospects.

Current Market Conditions: Rising interest rates and inflation have created some uncertainty in the market, but DFUS's focus on value and profitability may provide some protection against these risks.

Competitors

Key competitors of DFUS include:

• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)
• SPDR S&P 500 ETF Trust (SPY)

Expense Ratio

DFUS has an expense ratio of 0.15%, which is relatively low compared to other actively managed U.S. equity ETFs.

Investment Approach and Strategy

Strategy: DFUS passively tracks the Dimensional U.S. Core Equity 2 Index, which selects stocks based on size, value, and profitability.

Composition: The ETF's portfolio primarily consists of U.S. equity securities, with a focus on large and mid-cap stocks.

Key Points

• Invests in a diversified portfolio of U.S. equities.
• Employs a systematic and research-driven investment approach.
• Has a long-term track record of outperforming the S&P 500 Index.
• Offers low expenses and good liquidity.

Risks

Volatility: DFUS is subject to market volatility, which can lead to fluctuations in its share price.

Market Risk: The ETF's performance is tied to the overall performance of the U.S. equity market.

Who Should Consider Investing

DFUS is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to a diversified portfolio of U.S. equities.
• A systematic and research-driven investment approach.
• Low expenses and good liquidity.

Fundamental Rating Based on AI

Rating: 8.5 out of 10

Justification: DFUS received a high rating due to its strong financial performance, robust investment approach, experienced management team, and competitive expense ratio. However, investors should be aware of the potential for market volatility and the risks associated with investing in U.S. equities.

Resources and Disclaimers

Resources:

• Dimensional Fund Advisors website: https://us.dimensional.com/us-en/investors/etfs/dfus

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.