Dimensional to launch ETFs
Dimensional Fund Advisors has filed a preliminary registration statement with the Securities and Exchange Commission 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 emphasise 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,” says 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,” says 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.”