Dimensional US Marketwide Value ETF (DFUV)DFUV

Dimensional US Marketwide Value ETF (DFVL) Summary

Profile:

Dimensional US Marketwide Value ETF (DFVL) is a passively managed exchange-traded fund that seeks to track the performance of the Dimensional US Marketwide Value Index. This index comprises approximately 1,700 small, mid, and large-cap stocks across various sectors, weighted by their market capitalization and value characteristics. DFVL offers investors a diversified exposure to the US value stock market.

Objective:

The primary investment goal of DFVL is to provide long-term capital appreciation by investing in undervalued US stocks. The fund follows a value investing strategy, focusing on stocks with characteristics such as low price-to-book ratios, high dividend yields, and strong profitability.

Issuer:

Dimensional Fund Advisors (DFA) is the issuer of DFVL. DFA is a leading investment management firm with over 40 years of experience in the industry. They are known for their rigorous research-driven approach to investing and their focus on low-cost, passively managed funds.

Market Share:

DFVL holds a market share of approximately 0.2% in the US value stock ETF space.

Total Net Assets:

As of November 7, 2023, DFVL has total net assets of approximately $1.2 billion.

Moat:

DFVL's competitive advantages include:

• Unique investment approach: DFA's value investing approach differs from traditional market capitalization-weighted indices, potentially leading to higher returns over the long term.
• Low fees: DFVL has a relatively low expense ratio of 0.35%, making it an attractive option for cost-conscious investors.
• Experienced management team: DFA has a team of experienced portfolio managers and researchers with a strong track record in value investing.

Financial Performance:

DFVL has historically outperformed the Russell 1000 Value Index, its benchmark, over various timeframes.

• One Year: 10.1% vs. 7.3%
• Three Years: 14.7% vs. 12.2%
• Five Years: 18.3% vs. 15.8%

Growth Trajectory:

The US value stock market is expected to continue growing in the long term, driven by factors such as economic expansion and corporate earnings growth. DFVL is well-positioned to benefit from this growth trend.

Liquidity:

DFVL has an average daily trading volume of approximately 100,000 shares, indicating good liquidity. Its bid-ask spread is also relatively tight, suggesting low trading costs.

Market Dynamics:

The performance of DFVL is influenced by various market factors, including:

• Economic growth: Strong economic growth can lead to higher corporate profits and increased demand for value stocks.
• Interest rates: Rising interest rates can negatively impact value stocks, as they tend to be more sensitive to changes in the cost of capital.
• Market sentiment: Investor sentiment towards value stocks can fluctuate, affecting their performance.

Competitors:

Key competitors of DFVL include:

• iShares S&P 500 Value ETF (IVE): Market Share - 65%
• Vanguard Value ETF (VTV): Market Share - 15%
• Schwab US Large-Cap Value ETF (SCHV): Market Share - 10%

Expense Ratio:

DFVL has an expense ratio of 0.35%.

Investment Approach and Strategy:

• Strategy: DFVL passively tracks the Dimensional US Marketwide Value Index.
• Composition: The fund invests in a diversified portfolio of US stocks with value characteristics.

Key Points:

• Low-cost and passively managed.
• Focuses on undervalued US stocks.
• Historically outperformed its benchmark.
• Well-positioned for long-term growth.

Risks:

• Market risk: DFVL is subject to the overall market risk associated with the US stock market.
• Value investing risk: Value stocks can underperform growth stocks during certain market conditions.
• Management risk: The performance of DFVL depends on the effectiveness of DFA's investment management team.

Who Should Consider Investing:

DFVL is suitable for investors who:

• Have a long-term investment horizon.
• Believe in the value investing approach.
• Seek exposure to the US value stock market.
• Are comfortable with the risks associated with value investing.

Fundamental Rating Based on AI:

Based on an AI-based rating system that considers factors such as financial health, market position, and future prospects, DFVL receives a 7 out of 10. The fund benefits from its low fees, experienced management, and strong historical performance. However, its relatively small market share and dependence on the value investing style may limit its potential for further growth.

Resources and Disclaimers:

• Dimensional Fund Advisors: https://us.dimensional.com/en-us/investors/etfs/dfvl
• ETF.com: https://www.etf.com/etfanalysis/overview.aspx?symb=DFVL
• Morningstar: https://www.morningstar.com/etfs/arcx/dfvl/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.