Dimensional Completing Largest Mutual Fund To ETF Conversion

May 06, 2022

Dimensional Fund Advisors LP’s latest mutual fund to ETF conversion is set to close Monday and bring the amount of converted assets in 2022 to nearly $10 billion. 

The Tax-Managed US Marketwide Value Portfolio II ceased trading on Friday ahead of its scheduled debut as the Dimensional US Marketwide Value ETF (DFUV) on the NYSE Arca. Its 0.23% expense ratio is not changing as part of the conversion. 

Dimensional announced the conversion in a regulatory filing in late March. 

DFUV will continue to target U.S.-listed value stocks, while selling stocks with capital losses and maximizing long-term gains in a bid to minimize shareholders’ taxable net capital gains. 

As a mutual fund, DFUV has outperformed the benchmark Russell 3000 Value Index six times between 2012 and 2021. It produced a 25.91% return in 2021 compared with 25.37% from its benchmark. 

The $7.8 billion conversion will bring the amount of mutual fund assets converted in 2022 to approximately $9.84 billion.  

That figure will keep rising in the coming weeks as JPMorgan Asset Management Inc. converts its $1.2 billion JPMorgan Realty Income Fund and the $5.4 billion JPMorgan International Research Enhanced Equity Fund in late May and early June. 

 

Contact Dan Mika at [email protected]om, and follow him on Twitter 

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