Dimensional Unveils Emerging Market ETF

December 02, 2020

Today, Dimensional Fund Advisors rolled out a third actively managed core equity market ETF, this one targeting emerging markets. The new fund, the Dimensional Emerging Core Equity Market ETF (DFAE), complements the two funds that rolled out last month.

DFAE comes with an expense ratio of 0.36% and lists on the NYSE Arca.

Like the Dimensional US Core Equity Market ETF (DFAU) and the Dimensional International Core Equity Market ETF (DFAI), DFAE relies on a broad-based, actively managed and quantitative approach that tilts portfolio weights toward companies exhibiting exposure to the value, small size and profitability factors. It covers emerging and frontier markets, with the advisor including roughly 25 markets on its list of countries approved for investment, according to the prospectus.

DFA’s version of DFAE in a mutual fund wrapper, the Emerging Markets Core Equity Portfolio (I), trades under the ticker DFCEX and has nearly $25 billion in assets. It comes with an expense ratio of 0.48% and rolled out in 2005.

The firm has more ETFs in the pipeline, including a pending conversion of six tax-managed mutual funds into ETFs that is expected to take place early next year.

Contact Heather Bell at [email protected]

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