Dimensional Fund Advisors has expanded its lineup of ETFs with the Dimensional US Large Cap Vector ETF (NYSE Arca: DFVX). The actively managed ETF invests in a broad and diverse group of readily marketable equity securities of large-cap U.S. companies.
DFVX seeks securities that its managers believe to be more profitable and less expensive than other large-cap companies. When selecting securities, Dimensional takes an integrated investment approach that combines research, portfolio design, portfolio management, and trading functions.
The fund emphasizes long-term drivers of expected returns identified by the managers’ research. And it does this while balancing risk through broad diversification across companies and sectors. Additionally, DFVX’s management and trading processes balance long-term drivers of expected returns with shorter-term drivers of expected returns and trading costs.
An Evolving Investment Offering
“We continue to evolve our investment offering to meet demand from financial professionals,” said Co-CEO and CIO Gerard O’Reilly. “These ETFs are another set of tools in Dimensional’s growing lineup, which we expect will meet diverse investor needs across asset classes and geographies.”
“We are pleased to see broad professional use of Dimensional’s systematic, transparent ETFs,” said Dave Butler, Dimensional Co-CEO. “We believe a rules-based investment approach can help deliver a more reliable and smoother market experience for investors and can help to better address a variety of portfolio goals and aspirations.”
Dimensional recently surpassed $100 billion in ETF assets under management less than three years after its first ETF launch. Its full ETF suite is expected to total 38 funds at year-end.
“In its short history as an ETF provider Dimensional has quickly become a leader in active ETFs,” said Todd Rosenbluth, VettaFi’s head of research. “They offer low cost, low turnover strategies that appeal to advisors.”
DFVX carries an expense ratio of 0.22%.
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