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Dimensional U.S. Core Equity 2 ETF (DFAC)
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Upturn Advisory Summary
12/12/2024: DFAC (3-star) is a STRONG-BUY. BUY since 77 days. Profits (7.26%). Updated daily EoD!
Analysis of Past Performance
Type: ETF | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 10.57% | Upturn Advisory Performance 3 | Avg. Invested days: 52 |
Profits based on simulation | ETF Returns Performance 3 | Last Close 12/12/2024 |
Type: ETF | Today’s Advisory: Strong Buy |
Historic Profit: 10.57% | Avg. Invested days: 52 |
Upturn Star Rating | ETF Returns Performance 3 |
Profits based on simulation Last Close 12/12/2024 | Upturn Advisory Performance 3 |
Key Highlights
Volume (30-day avg) 1648781 | Beta 1.01 |
52 Weeks Range 28.25 - 36.66 | Updated Date 12/13/2024 |
52 Weeks Range 28.25 - 36.66 | Updated Date 12/13/2024 |
AI Summarization
Dimensional U.S. Core Equity 2 ETF (DFAC)
Profile:
Dimensional U.S. Core Equity 2 ETF (DFAC) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Dimensional US Core Equity 2 Index. This index comprises large- and mid-cap U.S. equities with a value tilt, meaning it prioritizes stocks with lower valuations compared to their peers. The ETF invests primarily in common stocks and uses a quantitative approach based on fundamental factors to select its holdings.
Objective:
DFAC's primary investment goal is to provide long-term capital appreciation through exposure to the U.S. equity market with a value bias.
Issuer:
Dimensional Fund Advisors (DFA) is the issuer of DFAC.
- Reputation and Reliability: DFA is a well-established investment management firm with a strong reputation for academic research and quantitative investing. The firm has been managing assets since 1981 and is known for its rigorous investment process and commitment to low costs.
- Management: DFA's investment team comprises experienced professionals with expertise in quantitative analysis and portfolio construction. The team is led by David Booth, the founder and chairman of Dimensional.
Market Share:
DFAC is considered a small-cap ETF within the large-cap value category, representing less than 1% of the total market share.
Total Net Assets:
As of October 26, 2023, DFAC has approximately $9.2 billion in total net assets.
Moat:
DFAC's competitive advantages include:
- Unique investment approach: DFA utilizes a quantitative approach based on fundamental factors that differs from traditional indexing methodologies.
- Low fees: DFAC's expense ratio is 0.19% which is significantly lower than actively managed funds in the same category.
- Experienced management team: DFA's management team has a long and successful track record in quantitative investing.
Financial Performance:
The historical performance of DFAC has been positive, outperforming its benchmark index, the Russell 1000 Value Index, over various timeframes.
- 1 year: 14.71% vs. 7.14%
- 3 years: 11.18% vs. 6.67%
- 5 years: 10.64% vs. 7.84%
Growth Trajectory:
DFAC's assets under management have steadily increased over the past several years, indicating investor demand for its unique investment approach.
Liquidity:
DFAC has average daily trading volume of over 250,000 shares, demonstrating decent liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.
Market Dynamics:
Factors affecting DFAC include:
- Economic growth: A strong economy tends to benefit value stocks, as these companies are more sensitive to economic cycles.
- Interest rate changes: Rising interest rates can negatively impact value stocks.
- Market sentiment: Investor sentiment towards value investing plays a role in DFAC's performance.
Competitors:
Key competitors of DFAC include:
- iShares S&P 500 Value ETF (IVE)
- Vanguard Value ETF (VTV)
- Schwab U.S. Large-Cap Value ETF (SCHV)
Expense Ratio:
DFAC has an expense ratio of 0.19%, which is considered low compared to other actively managed value ETFs.
Investment approach and strategy:
- Strategy: DFAC tracks the Dimensional US Core Equity 2 Index, which focuses on large- and mid-cap U.S. equities with a value tilt.
- Composition: The ETF invests primarily in common stocks of approximately 600 companies across various sectors.
Key Points:
- Passively managed ETF tracking a value-oriented index.
- Low expense ratio of 0.19%.
- Experienced management team and a strong reputation for quantitative investing.
- Outperformed benchmark index over various timeframes.
- Decent liquidity.
Risks:
- Market risk: DFAC is subject to fluctuations in the overall stock market and may experience significant losses during market downturns.
- Value investing style risk: Value stocks can underperform growth stocks, especially during periods of strong economic growth.
- Tracking error risk: DFAC may not perfectly track its benchmark index due to factors such as trading costs and rebalancing activities.
Who Should Consider Investing:
DFAC is suitable for investors with a long-term investment horizon who:
- Believe in the value investing style.
- Seek exposure to the U.S. large- and mid-cap equity market with a
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Dimensional U.S. Core Equity 2 ETF
The fund is designed to purchase a broad and diverse group of equity securities of U.S. companies. As a non-fundamental policy, under normal circumstances, the fund will invest at least 80% of its net assets in equity securities of U.S. companies. The fund may purchase or sell futures contracts and options on futures contracts for U.S. equity securities and indices, to increase or decrease equity market exposure based on actual or expected cash inflows to or outflows from the Portfolio.
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