With the launch of its 41st U.S.-listed ETF, Dimensional’s newest fund covers emerging markets while excluding China. The Dimensional Emerging Markets ex China Core Equity ETF (DEXC) lists on the NYSE Arca with an expense ratio of 0.43%.
DEXC is actively managed, like all Dimensional ETFs. Its strategy emphasizes exposure to the small-size, value and profitability factors. That said, the fund can invest across the equity size spectrum.
Although there are several funds covering this corner of the market, including a handful of actively managed funds, the largest by far is the passively managed iShares MSCI Emerging Markets ex China ETF (EMXC ) with $16.7 billion in AUM.
With China’s economy still struggling, many investors would like to be able to avoid investing in the country. Alternatively, they may want to manage their exposure more actively. As a result, emerging markets ex China strategies have held a lot of appeal in the last couple years. EMXC has pulled in more than $7 billion in assets year-to-date.
The launch of DEXC brings another major name in ETFs into the space. Although it only debuted its own ETFs a few years ago, Dimensional is already among the top 10 ETF issuers in terms of AUM. It currently has roughly $162 million invested across its ETF family. The research of Nobel Laureate Eugene Fama and Kenneth French drives its active management methodology.
DEXC’s portfolio includes more than 3,300 securities. Taiwan Semiconductor Manufacturing Co. hold the largest weighting at nearly 13% of the portfolio followed by Samsung Electronics at 3.75% and Infosys at 1.96%.
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