The case can continue to be made that American investors should be looking overseas. Looking at ways to capitalize on the market’s current position, there’s much use for an ETF that can offer broadly diversified, core equity exposure for EM markets.
On Wednesday, Dimensional Fund Advisors, a global leader in systematic factor investing, has listed its third active transparent ETF and its first ETF that offers exposure to emerging markets stocks. This fund is the Dimensional Emerging Core Equity Market ETF (NYSE Arca: DFAE), which features a net expense ratio of 0.35%.
DFAE, listed on NYSE Arca, is designed to leverage the power of Dimensional’s investment engine—a consistent investment philosophy combined with a value-added approach to implementation that the firm has been testing, refining, and advancing for nearly four decades.
Additionally, the new fund follows last month of Dimensional Core Equity ETFs offering US and non-US equity markets exposure. This would be referring to the Dimensional US Core Equity Market ETF (NYSE Arca: DFAU), featuring a net expense ratio: 0.12%, and the Dimensional International Core Equity Market ETF (NYSE Arca: DFAI), which has a net expense ratio: 0.18%. Both were initially listed on November 18, 2020.
“We believe that our approach to systematic investing, using a flexible daily process based on rigorous research, offers investors a compelling alternative to existing active and index-based ETFs,” Co-CEO and Chief Investment Officer Gerard O’Reilly said.
Dimensional Core Equity solutions are designed to offer broadly diversified, all-cap core exposure, emphasizing securities with higher expected returns using variables such as company size, relative price, and profitability. The Core Equity market portfolios aim to achieve a light level of tilt from market cap weights and low tracking error to the market through a daily managed approach.
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