Dimensional Lists Three New Emerging Markets Equity ETFs

Rhea-AI Summary

Dimensional Fund Advisors has launched three new ETFs targeting emerging markets, expanding its offerings on the NYSE. The new listings include the Emerging Markets Core Equity 2 ETF (DFEM), Emerging Markets Value ETF (DFEV), and Emerging Markets High Profitability ETF (DEHP). Each fund aims for long-term capital appreciation with net expense ratios of 0.39%, 0.43%, and 0.41%, respectively. This expansion enhances Dimensional's lineup to 23 ETFs, totaling approximately $48 billion in assets under management, aiming to provide comprehensive investment solutions for financial professionals.

Positive

• Launch of three new ETFs targeting emerging markets: DFEM, DFEV, DEHP.
• Funds aim for long-term capital appreciation and diversified exposure.
• Increased total ETF offerings to 23, accumulating ~$48 billion in AUM.

Negative

• None.

The new listings provide financial professionals with a full suite of investment solutions to build comprehensive, globally diversified models using Dimensional ETFs.

AUSTIN, Texas--(BUSINESS WIRE)-- Dimensional Fund Advisors, a global leader in systematic investing, expanded its exchange-traded funds (ETFs) offering with today’s listing of three emerging markets equity ETFs, which offer broadly diversified exposure to core, value, and high profitability¹ equities within emerging markets.

“Dimensional’s expanded ETF suite leverages the firm’s 40-year track record of thoughtful portfolio design and flexible, cost-efficient implementation,” said Co-CEO and Chief Investment Officer Gerard O’Reilly. “Investors can benefit from these funds’ broadly diversified exposure to emerging markets, delivered with a robust, systematic, and scalable pursuit of higher expected returns.”

The new funds, which are listed on the New York Stock Exchange (NYSE), are:

Emerging Markets Core Equity 2 ETF (NYSE: DFEM)

• Net expense ratio²: 0.39%
• Description: Emerging markets total market solution that targets higher expected returns and consistent exposure through a daily flexible process

Emerging Markets Value ETF (NYSE: DFEV)

• Net expense ratio²: 0.43%
• Description: Emerging markets value solution that targets higher expected returns and consistent exposure through a daily flexible process

Emerging Markets High Profitability ETF (NYSE: DEHP)

• Net expense ratio²: 0.41%
• Description: Emerging markets high profitability solution covering large caps and mid caps that targets higher expected returns and consistent exposure through a daily flexible process

The three new funds join the growing lineup of Dimensional ETFs, now totaling 23 funds and approximately $48 billion in AUM, which complement the firm’s existing mutual funds and expanded separately managed accounts (SMAs) offerings.

“Our expanding ETF suite provides financial professionals with a full set of solutions to build globally diversified asset allocation models using Dimensional ETFs,” said Co-CEO Dave Butler. “We’re pleased with the strong demand we are seeing for our ETF suite and look forward to serving our clients with even broader exposure to Dimensional portfolios across geographies, asset classes, and solution types.”

More information about Dimensional ETFs can be found here: us.dimensional.com/etfs

ABOUT DIMENSIONAL FUND ADVISORS
Dimensional is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in markets, we help investors pursue higher expected returns through a systematic investment process that integrates research insights with advanced portfolio design, management, and trading while balancing tradeoffs that can impact returns. Dimensional is headquartered in Austin, Texas, and has 13 global offices across North America, Europe, and Asia. As of March 31, 2022, Dimensional manages $659 billion for investors worldwide. For more information, please visit dimensional.com.

DISCLOSURES

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at us.dimensional.com. Dimensional funds are distributed by DFA Securities LLC.

This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions.

ETFs trade like stocks, fluctuate in market value, and may trade either at a premium or discount to their net asset value. ETF shares trade at market price and are not individually redeemable with the issuing fund, other than in large share amounts called creation units. ETFs are subject to risks similar to those of stocks, including those regarding short-selling and margin account maintenance. Ordinary broker commissions may apply. Risks include loss of principal and fluctuating value. International investing involves special risks such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks. These risks are described in the Principal Risks section of the prospectus. Diversification does not eliminate the risk of market loss.

The investment objective of each of the three newly listed ETFs is to achieve long-term capital appreciation.

¹ Profitability is defined as a company’s operating income before depreciation and amortization minus interest expense scaled by book equity.

² Dimensional has agreed to waive certain fees and, in certain instances, assume certain expenses of the ETFs. Please read the ETFs’ prospectus for details and more information

View source version on businesswire.com: https://www.businesswire.com/news/home/20220427005264/en/

Media:

Taylor Fischer

taylor.fischer@dimensional.com

Source: Dimensional Fund Advisors LP

FAQ

What are the newly launched ETFs by Dimensional Fund Advisors?

Dimensional Fund Advisors launched three new ETFs: Emerging Markets Core Equity 2 ETF (NYSE: DFEM), Emerging Markets Value ETF (NYSE: DFEV), and Emerging Markets High Profitability ETF (NYSE: DEHP).

What is the expense ratio for the new Dimensional ETFs?

The expense ratios are 0.39% for DFEM, 0.43% for DFEV, and 0.41% for DEHP.

What is the investment objective of the new ETFs DFEM, DFEV, and DEHP?

The investment objective for all three new ETFs is to achieve long-term capital appreciation.

How many ETFs does Dimensional Fund Advisors now offer?

With the addition of the three new ETFs, Dimensional Fund Advisors now offers a total of 23 ETFs.

What is the total assets under management for Dimensional's ETFs?

Dimensional's ETFs now total approximately $48 billion in assets under management.