Company Brings Almost 40 Years of Systematic Fixed Income Expertise to ETFs, Filing 10 New ETFs Providing Comprehensive Asset Allocation Components Using Dimensional ETFs
AUSTIN, Texas, November 16, 2021– (BUSINESS WIRE) – Dimensional Fund Advisors, a global leader in systematic investing, today listed the company’s top four transparent asset fixed income exchange-traded funds (ETFs) and filed a statement of ‘preliminary registration for 10 other equity ETFs.
Dimensional Fixed Income ETFs
Dimensional launched one of the industry’s first systematic bond funds in 1983. The company has continued to refine and advance its investment process and today manages over 35 strategies and $ 120 billion in investment. fixed income assets, as of the end of October 2021. The new Income ETFs build on Dimensional’s legacy of thoughtful and flexible implementation, which offers robust risk management and uses insights into market prices to invest in bonds with higher expected returns, rather than trying to outperform the market or time interest rates.
The funds listed on the NYSE are:
Dimensional Core Fixed Income ETF (NYSE Arca: DFCF)
Net expense ratio: 0.19%
The description: US-based bond solution pursuing higher expected returns thanks to systematic duration and credit management
Short Term Fixed Income Dimension ETF (NYSE Arca: DFSD)
Net expense ratio: 0.18%
The description: Short-lived basic American solution pursuing higher expected returns through systematic duration and credit management
Dimensional National Municipal Bond ETF (NYSE Arca: DFNM)
Net expense ratio: 0.18%
The description: National municipal bond solution targeting higher expected returns while seeking to provide income exempt from federal personal income tax
Dimensional Inflation-Protected Securities ETF (NYSE Arca: DFIP)
Net expense ratio: 0.11%
The description: US TIPS solution targeting higher expected returns while providing inflation protection
“Just as multifactor investing in equities has grown in importance over the past decade, we believe investors will increasingly turn to systematic fixed income solutions, which present reliable and transparent means of access bond markets and the flexibility to aim for higher expected returns, ”said Co.-CEO and Chief Investment Officer Gerard O’Reilly.
“Fixed income investing has long been inundated with active strategies that try to outperform markets and passive funds that are too rigid to nimbly target higher returns,” said Dave Plecha, Global Head of Income Securities fixed from Dimensional. “Dimensional fixed income solutions go beyond indexing and provide the flexibility to navigate dynamic market conditions in a cost-effective and transparent manner.
Dimensional files for 10 additional stock ETFs
Dimensional also today filed 10 new active transparent exchange-traded funds (ETFs) with the Securities and Exchange Commission (SEC). The strategies provide exposure to a variety of US, international developed, emerging and real estate stocks, as well as component solutions that target companies based on known factors of higher expected returns.
Once listed, the company’s ETFs will span a wide range of asset classes and sectors, providing finance professionals with the components necessary to create comprehensive asset allocation models using dimensional ETFs.
Dimensional is committed to providing financial professionals with a comprehensive suite of ETF solutions that leverage the power of our investment engine – a cohesive philosophy combined with a value-added implementation approach that the company tests, refines and advanced for four decades.
The following funds are included in the dossier:
Core 2 International Equity ETF
Core Equity 2 Emerging Markets ETF
US Small Cap Value ETF
International Small Cap ETF
International Small Cap Value ETF
Emerging Markets Value ETFs
American ETF with high profitability
High-profit international ETF
High Profit Emerging Markets ETFs
American Real Estate ETF
“Dimensional’s extended ETF suite builds on the company’s 40 years of thoughtful research and meticulous implementation of the best ideas in financial science,” said co-CEO Dave Butler. “We are dedicated every day to refining our research and its practical application across our comprehensive offering of mutual funds, ETFs and SMAs with the aim of providing the best possible investment experience for every client. “
You can find more information about dimensional ETFs here: https://us.dimensional.com/etfs
ABOUT DIMENSIONAL FUND ADVISORS
Dimensional is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in the markets, we help investors seek higher expected returns through a process of systematic investment that integrates research insights with advanced portfolio design and management. , and trading, while balancing tradeoffs that can impact returns. Dimensional is headquartered in Austin, Texas, and has 13 global offices in North America, Europe and Asia. As of September 30, 2021, Dimensional manages $ 653 billion for investors around the world. For more information, please visit dimension.com.
Dimensional Fund Advisors LP is a registered investment adviser with the Securities and Exchange Commission. Carefully consider the investment objectives, risks, and fees and expenses of Dimensional funds before investing. For this and other information about Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at us.dimensional.com. Dimensional funds are distributed by DFA Securities LLC.
Concerning the 10 new ETFs currently being registered: The information contained in this document is not complete and may be modified. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This document and the prospectus do not constitute an offer to sell these securities and do not solicit an offer to buy such securities in a State where the offer or sale is not authorized.
This information is not intended to constitute investment advice, a recommendation of any securities product or investment strategy (including the type of account), or an offer of services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult a financial professional about their personal circumstances before making any investment decisions.
Risks include loss of principal and fluctuation in value. Fixed income securities are subject to increased capital loss during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, liquidity, prepayments, call risk and other factors. Municipal securities are subject to the risks of adverse economic and regulatory changes in their issuing states.
ETFs trade like stocks, fluctuate in market value and can be traded at a premium or a discount to their net asset value. ETF shares trade at market price and are not individually redeemable from the issuing fund, except in large quantities called creation units. ETFs are subject to similar risks to stocks, including those relating to short selling and maintaining the margin account. Commissions and brokerage fees will reduce returns.
The investment objective of each of the four newly listed Fixed Income ETFs is as follows:
ETF Core Fixed Income — to seek to maximize the total returns of the universe of qualifying investments.
Short Term Fixed Income ETFs — to maximize the total returns of the universe of fixed income securities in which the portfolio invests.
National Municipal Bond ETF — to seek to provide current income that should be exempt from federal personal income tax.
Inflation-Protected Securities ETFs — to provide inflation protection and earn current income consistent with inflation-protected securities.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211116005965/en/
Contacts
Taylor Smith, Dimensional Fund Advisors, taylor.smith@dimensional.com
Abby Rex-Groves, Prosek Partners, amcaleney@prosek.com
