Dimensional Fund Advisors on Wednesday listed three new equity sustainability exchange traded funds on the New York Stock Exchange. The new ETFs offer broadly diversified exposure to U.S., developed international, and emerging markets equities while applying climate-focused sustainability considerations.
“Dimensional’s approach to sustainability investing integrates emissions-based exclusions and weighting criteria to reduce carbon footprint exposure both across and within sectors,” said Dimensional Co-CEO and chief investment officer Gerard O’Reilly in a news release. “These funds importantly begin with Dimensional’s time-tested investment process, which blends what we believe is the best of passive investing with flexible, active implementation before layering in targeted, data-driven sustainability considerations. This enables us to focus on delivering sound investment solutions that are broadly diversified and designed to pursue higher expected returns while also driving reductions in carbon emissions exposures.”
The new funds are:
The US Sustainability Core 1 ETF
• Net expense ratio1: 0.18%
• Description: U.S. market-wide solution emphasizing higher expected returns and targeting reduced carbon emissions exposure
The International Sustainability Core 1 ETF
• Net expense ratio1: 0.24%
• Description: Developed non-U.S. market-wide solution emphasizing higher expected returns and targeting reduced carbon emissions exposure
The Emerging Markets Sustainability Core 1 ETF
• Net expense ratio1: 0.41%
• Description: Emerging markets market-wide solution emphasizing higher expected returns and targeting reduced carbon emissions exposure
The three new funds join Dimensional’s lineup of ETFs, which now total 27 funds and roughly $64 billion in AUM. Dimensional has also filed for a global fixed income sustainability ETF, which it plans to launch later this month.
“In just a few years, Dimensional Funds has successfully captured advisor attention with their low-cost, actively managed ETF lineup,” said Todd Rosenbluth, head of research at VettaFi. “Their continued expansion of the product suite to include sustainable strategies provides more tools for advisors to build asset allocation strategies.”
Dimensional Co-CEO Dave Butler added: “For over a decade, Dimensional has managed sustainability strategies that have empowered investors to align their portfolios with their personal values. These new sustainability funds add to our growing suite of ETFs and will provide advisors with additional tools to design sound, diversified, global asset allocations with a climate focus for their investors.”
More information about Dimensional ETFs can be found at dimensional.com/etfs.
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