Dimensional Completing Largest Mutual Fund To ETF Conversion

The active manager is set to bring $7.8 billion worth of assets into the ETF wrapper.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

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], and follow him on Twitter 

Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.