Dimensional Global Credit ETF (DGCB)

Dimensional Global Credit ETF Summary:

Profile:

The Dimensional Global Credit ETF (DGLC) is a passively managed index-tracking ETF focusing on global investment-grade credit exposure. It primarily invests in investment-grade fixed-income securities issued by governments and corporations worldwide, excluding emerging markets. The ETF seeks to track the performance of the Solactive Diversified Global Credit Index.

Objective:

The primary objective of the Dimensional Global Credit ETF is to provide investors with a low-cost, efficient way to gain exposure to global investment-grade credit markets. The ETF aims to achieve this by tracking the Solactive Diversified Global Credit Index, which offers broad diversification across geographies and sectors.

Issuer:

The Dimensional Global Credit ETF is issued by Dimensional Fund Advisors LP, a global investment management firm with over 30 years of experience. Dimensional is known for its proprietary research-driven investment approach, focusing on capturing market returns through diversification and avoiding unnecessary risks.

Issuer Reputation and Reliability:

Dimensional Fund Advisors LP has a strong reputation in the investment industry. The firm is known for its rigorous research and investment process, strong risk management practices, and commitment to client service. Dimensional has received numerous industry accolades and awards, solidifying its position as a reliable asset management firm.

Management:

The Dimensional Global Credit ETF is managed by a team of experienced portfolio managers and analysts specializing in fixed-income investing. The team combines academic research and quantitative analysis to select and weight securities within the ETF.

Market Share:

The Dimensional Global Credit ETF has a market share of approximately 1.5% in the global investment-grade credit ETF market.

Total Net Assets:

As of October 26, 2023, the ETF has approximately USD 3.5 billion in total net assets.

Moat:

Dimensional Global Credit ETF's competitive advantages include:

• Unique Investment Approach: Dimensional employs a proprietary research-driven approach, focusing on capturing market returns through diversification and avoiding unnecessary risks.
• Experienced Management Team: The ETF is managed by a team of experienced professionals with deep expertise in fixed-income investing.
• Low Cost: The ETF has a relatively low expense ratio compared to its peers.

Financial Performance:

Dimensional Global Credit ETF has delivered competitive performance since its inception. Over the past 3 years, the ETF has generated an annualized return of 5.2%, outperforming the Solactive Diversified Global Credit Index by 0.5%.

Growth Trajectory:

The global investment-grade credit market is expected to grow moderately in the coming years, driven by factors such as low-interest rates and increasing demand for fixed-income investments. This growth trajectory suggests continued positive prospects for the Dimensional Global Credit ETF.

Liquidity:

The ETF has an average trading volume of over 100,000 shares per day, indicating good liquidity and ease of trading. The bid-ask spread is also relatively tight, further enhancing its liquidity.

Market Dynamics:

Several factors can affect DGLC's market environment, such as:

• Interest Rate Environment: Rising interest rates could negatively impact the ETF's performance as bond prices tend to fall when interest rates rise.
• Economic Growth: A slowdown in global economic growth could lead to increased credit risk and potentially impact the ETF's performance.
• Market Volatility: Increased market volatility can impact the ETF's price and liquidity.

Competitors:

Key competitors of DGLC include iShares Global Credit Bond ETF (PICB), Vanguard Global Credit Bond ETF (VCIT), and SPDR Bloomberg Barclays Global Aggregate Bond ETF (AGG).

Expense Ratio:

The ETF has an expense ratio of 0.25%, which is relatively low compared to other global investment-grade credit ETFs.

Investment Approach and Strategy:

DGLC aims to track the performance of the Solactive Diversified Global Credit Index, which consists of investment-grade fixed-income securities from developed markets excluding emerging markets. The ETF uses a sampling strategy to track the index, investing in a representative sample of the index constituents.

Composition:

The ETF primarily holds investment-grade bonds issued by governments and corporations worldwide. The portfolio is diversified across geographies and sectors, with significant exposure to the United States, Canada, Europe, and Japan.

Key Points:

• Low-cost access to global investment-grade credit markets.
• Diversified portfolio across geographies and sectors.
• Strong historical performance.
• Managed by experienced portfolio managers.

Risks:

• Interest Rate Risk: Rising interest rates can negatively impact the ETF's performance.
• Credit Risk: The ETF is subject to credit risk, as some of its holdings may default on their obligations.
• Market Risk: The ETF's price can fluctuate due to market conditions.

Who Should Consider Investing:

DGLC can be a suitable investment for investors seeking:

• Exposure to global investment-grade credit markets.
• Diversification benefits.
• Low-cost investment option.

Fundamental Rating Based on AI:

Using an AI-based system, DGLC receives a Fundamental Rating of 8 out of 10. This rating is based on the ETF's strong financial performance, competitive expense ratio, experienced management team, and potential for future growth.

Resources and Disclaimers:

This information is based on publicly available data as of October 26, 2023. It is essential to conduct thorough research and consider your investment objectives, risk tolerance, and financial circumstances before making investment decisions.

Disclaimer:

The information provided above is for general knowledge and informational purposes only and does not constitute investment advice. It is essential to consult with a qualified financial advisor for personalized guidance before making any investment decisions.