Investors can look to quantitative implementation and actively managed styles in a cost-efficient wrapper through the exchange traded fund investment tool.
“Dimensional philosophy combines many of the unique aspects of indexing – lost-cost, transparent, low turnover, and so on – with an active implementation, and that’s not too surprising because when you look at …. some of the folks that are involved with starting the firm, they actually started index funds in the early seventies,” Gerard O’Reilly, Co-CEO and CIO, Dimensional Fund Advisors, told Bob Pisani on CNBC’s “ETF Edge.”
“What we’ve been trying to do is improve upon indexing, and how we do that is to the research that we do. How we design portfolios. How we manage portfolios day-to-day. And then how we trade,” he added.
Dimensional Fund Advisors recently announced plans to launch six new actively managed ETFs. The firm has already rolled out its Core Equity Market ETFs, including the Dimensional US Core Equity Market ETF (NYSE Arca: DFAU) and Dimensional International Core Equity Market ETF (NYSE Arca: DFAI).
“Your business model over the years has been really unique, and the fact that you hand selected advisors and institutions as clients – even would bring them into your company to educate them on your philosophy, and then approve them as far as being able to buy. I know there are a lot of advisors out there today that are really excited that you’re getting into the ETFs,” ETF Trends CEO Tom Lydon said on CNBC’s “ETF Edge.”