Why Systematic Active Over Either Active or Passive | ETF Trends

The conversion of mutual funds into ETFs that Dimensional Fund Advisors undertook earlier this year — the biggest such conversion in history — is great news for investors and financial advisors. The firm’s time-tested systematic active approach is now available in efficient, transparent, and low-cost Dimensional ETFs.

In the upcoming webcast, Why Systematic Active Over Either Active or Passive, Gerard O’Reilly, co-CEO and CIO of Dimensional Fund Advisors, will explain key aspects of Dimensional’s investment approach and showcase solutions that differentiate Dimensional ETFs from others in the industry.

For example, Dimensional ETFs recently expanded its lineup with four new strategies, including the Dimensional US Equity ETF (NYSE Arca: DFUS), the Dimensional US Core Equity 2 ETF (NYSE Arca: DFAC), the Dimensional US Small Cap ETF (NYSE Arca: DFAS), and the Dimensional US Targeted Value ETF (NYSE Arca: DFAT).

The ETFs are part of the firm’s plan to convert tax-managed mutual funds into ETFs, which offer investors an additional tool to manage capital gains, supporting the funds’ goal of delivering higher after-tax returns by minimizing tax impact.

Dimensional is one of the first asset managers to convert mutual funds into ETFs. With the successful launch of the firm’s first three ETFs and the conversion of these four mutual funds, Dimensional becomes one of the largest active ETF issuers in the industry, with more than $30 billion in combined ETF assets under management, placing the firm in the top 10% of all ETF issuers across both active and passive offerings.

Dimensional investment strategies seek to harness a consistent, broadly-diversified, and systematic approach that aims to outperform the market without outguessing the market. Strategies within Dimensional’s suite of ETFs have varying tilts from market weights to securities that offer higher expected returns, such as small-cap, value, and high profitability securities.

Dimensional ETFs now provide a range of equity solutions that include market-wide core equity portfolios with varying degrees of emphasis on drivers of expected returns, and component solutions, such as value and small-cap portfolios. This range of strategies provides more customization in asset allocation, which can help financial professionals meet the specific investment goals and needs of their diverse investor bases.

Financial advisors who are interested in learning more about Dimensional’s time-tested investment approach can register for the Tuesday, October 19 webcast here.