Dimensional Asset Management listed four new ETFs, with two being clones of strategies in the firm’s existing lineup of mutual funds carrying a combined $24.5 billion.
The funds listed on Cboe Global Markets on Thursday.
|Ticker||Fund||Initial Expense Ratio*||Total Expense Ratio|
|DIHP||Dimensional International High Profitability ETF||0.29%||0.33%|
|DFIS||Dimensional International Small Cap ETF||0.39%||0.47%|
|DISV||Dimensional International Small Cap Value ETF||0.42%||0.51%|
|DFIC||Dimensional International Core Equity 2 ETF||0.23%||0.28%|
*All funds carry fee waivers that expire on Feb. 28, 2023
Two of the ETFs use the same first four letters of their corresponding mutual fund tickers and overlap in their portfolio management team except for DFIC and DIHP, which have no direct comparison in the existing Dimensional lineup.
DFIC follows small cap companies in developed markets outside of the U.S. and aims to blend value and growth exposure, while DIHP tracks non-U.S. large cap companies deemed to have higher profits relative to their peers. Neither fund has a specific benchmark, according to their prospectuses.
DFIS’ corresponding mutual fund is outperforming its benchmark MSCI World ex USA Small Cap Index over a one-year annualized period, with 3.83% returns against a 0.02% loss. DISV’s 8.95% returns in the past 12 months beats its two benchmarks, by 3.65% and 8.97%. However, both funds are underperforming against their benchmarks when comparing over a five-year and longer annualized return period.
The launches are the latest offerings from Dimensional, which issued three mutual fund strategies in the ETF wrapper last month. The firm was the first large-scale asset manager to convert a suite of multibillion-dollar mutual funds to ETFs last summer, but has since mainly focused on issuing ETF companions to existing mutual funds since then to provide both options to investors.
However, Dimensional filed earlier this week to convert the $8.2 billion U.S. Marketwide Value Portfolio II into an ETF, with a target conversion date on or around May 6.