Dimensional to Launch Exchange Traded Funds in the US
Leading global investment firm brings four decades of experience in systematic, active investing to ETFs
June 26, 2020
Dimensional Fund Advisors filed a preliminary registration statement with the Securities and Exchange Commission in the US for the launch of three actively managed exchange traded funds (ETFs), planned for later this year. The ETFs will offer broadly diversified, all cap core equity exposure to US, non-US developed, and emerging markets, while incorporating longstanding pillars of Dimensional’s value-added approach to systematic investing.
The ETFs extend how clients may access Dimensional’s investment approach, which draws insights from financial research to emphasize areas of the market with higher expected returns and adds further value through daily implementation that has been tested, refined, and advanced for over 39 years. Dimensional has one consistent investment philosophy that underpins all strategies managed by the firm, regardless of asset class, region, or investment vehicle.
“Our investment process has always focused on delivering the benefits of conventional passive—low-cost, diversified solutions—with the advantages of systematic active—higher expected returns, flexible trading, robust portfolio management, and risk management,” said Gerard O’Reilly, Co-Chief Executive Offer and Chief Investment Officer.
Dimensional has long offered investment strategies through mutual funds, separate accounts, and commingled trusts. In addition to client demand, recent regulation and technology adoption are changing the ETF marketplace. This has enabled Dimensional to expand its offering to include active transparent ETFs, allowing clients greater choice in how they access Dimensional Investing.
“For nearly four decades, we have built our investment offering thoughtfully and systematically. We take the time to understand clients’ evolving needs, identifying where we can uniquely add value, and ultimately aim for both a better investment experience and higher returns,” said Dave Butler, Co-Chief Executive Officer. “The long-term outperformance and high survivorship rate of our solutions compared to the industry are testament to the value provided to our clients.”
ABOUT DIMENSIONAL FUND ADVISORS
Dimensional is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in markets, we help investors pursue higher expected returns through a systematic investment process that integrates research insights with advanced portfolio design, management, and trading, while balancing tradeoffs that can impact returns. Dimensional is headquartered in Austin, Texas, and has offices across North America, Europe, and Asia. As of May 31, 2020, Dimensional manages US$506 billion for investors worldwide.
This material is for informational purposes only. A registration statement relating to the Dimensional ETF Trust has been filed with the Securities and Exchange Commission but has not yet become effective. Information about the Dimensional ETF Trust is not complete and may be changed. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Prospective investors should consult their professional advisors as to the suitability of any investment in light of their particular circumstances and applicable citizenship, residence, or domicile. Certain products offered by Dimensional Fund Advisors may not be available to all entities or persons.
Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at us.dimensional.com. Copies of the final prospectus can be obtained from Dimensional. Please note that a preliminary prospectus is subject to change.
ETF shares are not redeemable with the issuing fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell ETF shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
Risks include loss of principal and fluctuating value. Small cap securities are subject to greater volatility than those in other asset categories. Value investing is subject to risk, which may cause underperformance compared to other equity investment strategies. International investing involves special risks, such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks. These risks are described in the Principal Risks section of the prospectus. Dimensional funds are distributed by DFA Securities LLC.