Dimensional Fund Advisors (DFA) recently launched three actively managed exchange traded funds. The funds are off to a great start in the actively managed space.
The ETFs extend how clients may access Dimensional’s investment approach, which draws insights from financial research to emphasize areas of the market with higher expected returns and adds further value through daily implementation that has been tested, refined, and advanced for over 39 years. Dimensional has one consistent investment philosophy that underpins all strategies managed by the firm, regardless of asset class, region, or investment vehicle.
“The $601 billion manager founded by David Booth has amassed over $700 million among its three debut ETFs, which launched in November and December, according to data compiled by Bloomberg. The trio has absorbed roughly $337 million so far in 2021,” reports Katherine Greifeld for Bloomberg.
An Impressive ETF Debut for DFA
DFA is known for being one of the sharpest quantitative managers. Prior to introducing its own ETFs, the firm provided indexes and methodologies for John Hancock Investment Management ETFs, a relationship that remains intact.
Dimensional Core Equity solutions are designed to offer broadly diversified, all-cap core exposure, emphasizing securities with higher expected returns using variables such as company size, relative price, and profitability. The Core Equity market portfolios aim to achieve a light level of tilt from market cap weights and low tracking error to the market through a daily managed approach.
For more on active strategies, visit our Active ETF Channel.