On Monday, Dimensional Fund Advisors announced the launch of the Dimensional US Marketwide Value ETF (NYSE Arca: DFUV), which will begin trading on the New York Stock Exchange. This new fund is the result of Dimensional’s conversion of its Tax-Managed US Marketwide Value Portfolio II mutual fund into an active transparent ETF, the seventh and final planned conversion of the firm’s tax-managed mutual funds into ETFs since June 2021.
According to Dimensional, DFUV is a U.S. market solution that emphasizes companies with low prices in relation to their book values and targets higher expected returns and consistent exposure through a daily flexible process.
“We are pleased to complete our final planned tax-managed mutual fund-to-ETF conversion, which provides tax-sensitive investors with another tool to manage capital gains,” said Co-CEO and chief investment officer Gerard O’Reilly in a news release. “Dimensional is dedicated to continuous innovation within our well-constructed, broadly diversified investment solutions and delivering a full suite of ETFs to the financial professionals we work with.”
The conversion brings another $8 billion in assets to Dimensional’s growing lineup of ETFs, totaling 24 funds and approximately $50 billion in assets under management. This ETF suite complements the firm’s existing mutual funds and expanded separately managed accounts (SMAs) offerings, further choosing how clients access Dimensional’s research-driven investment process.
“Over the course of the last four decades, Dimensional has focused on empowering and equipping financial professionals with investment solutions that seek to deliver the best possible client and investment experience,” added Co-CEO Dave Butler. “Our growing ETF lineup furthers this mission and offers greater optionality for advisors and institutions to build asset allocations that better fit investors’ unique needs.”
DFUV has an expense ratio of 0.23%.
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