Dimensional Fund Advisors has announced the launch of four new international ETFs. The new ETFs, which begin trading on the Chicago Board Options Exchange today, offer broadly diversified exposure to core international equities across market caps and styles as well as component solutions focused on international small-cap, international small-cap value, and international high profitability equities.
“Recent volatility has demonstrated the continued value of broadly diversified portfolios with added flexibility as well as experienced advisors to help keep investors aligned with their financial plans,” said co‐CEO Dave Butler in a news release. “The active transparent ETF industry remains relatively nascent, and we believe our approach, which builds on the core principles of indexing by incorporating flexible, daily implementation, will continue to attract investors that believe in investing for the long term.”
The Cboe‐listed funds are:
- The International Core Equity 2 ETF (DFIC), which is designed to purchase a broad and diverse group of non‐U.S. companies in developed markets with an emphasis on companies with smaller market capitalization, lower relative price, and higher profitability. DFIC has a net expense ratio of 0.23%.
- The International Small Cap ETF (DFIS), which is designed to purchase small, non-U.S. companies in developed markets. DFIS has a net expense ratio of 0.39%.
- The International Small Cap Value ETF (DISV), which is designed to purchase small, non-U.S. companies with low prices in relation to their book values in developed markets. DISV has a net expense ratio of 0.42%.
- The International High Profitability ETF (DIHP), which is designed to purchase large, non-U.S. companies with high earnings or profits from operations in relation to their book value or assets in developed markets. DIHP has a net expense ratio of 0.29%.
The four new funds are part of a lineup of Dimensional ETFs that now totals 20 funds.
“For decades, Dimensional has implemented our systematic approach in international equity markets through low‐cost, broadly diversified strategies. Now we are delivering these time‐tested core and component strategies within ETFs,” said co‐CEO and chief investment officer Gerard O’Reilly.
O’Reilly added: “Efficiently managing costs, controlling risks, and managing tax impacts are crucial when investing across thousands of securities in international markets. Our flexible investment approach is focused on delivering those results and adding further value over traditional active investing and passive indexing solutions.”
ETF Trends’ head of research, Todd Rosenbluth, said: “Advisors are increasingly using international equity ETFs to combat home bias in client portfolios. Yet the new products will provide diversified active exposure to either small caps or profitable foreign companies, which are hallmarks of Dimensional’s long-term investment approach.”
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