Dimensional World ex U.S. Core Equity 2 ETF (DFAX)

Overview

The Dimensional World ex U.S. Core Equity 2 ETF (DFWX) seeks to provide long-term capital appreciation by investing in a broad and diverse portfolio of companies located outside of the United States. It aims to capture a significant portion of the global ex-U.S. equity market by focusing on a core equity strategy.

Reputation and Reliability

Dimensional Fund Advisors is a well-regarded firm known for its systematic, research-driven investment approach and low fees.

Management Expertise

Dimensional's management team has extensive experience in quantitative investing and a long track record of implementing factor-based strategies.

Goal

The primary investment goal is long-term capital appreciation by investing in a broad range of non-U.S. companies.

Investment Approach and Strategy

Strategy: The ETF employs a market-cap-weighted approach, adjusted for relative price and profitability factors, to invest in a broad range of non-U.S. equity securities.

Composition The ETF holds a diversified portfolio of stocks from developed and emerging markets, excluding the United States. It focuses on companies with relatively low prices and high profitability.

Market Share: Data unavailable for exact market share.

Total Net Assets (AUM): 139000000

Key Competitors

• VXUS
• VEA
• ACWX
• SPDW

Competitive Landscape

The international ex-U.S. equity ETF market is dominated by large, low-cost index trackers like VXUS and VEA. DFWX differentiates itself with its factor-based approach targeting value and profitability, which may lead to outperformance in certain market environments but also higher tracking error compared to pure market-cap-weighted indexes. These larger competitor ETFs have greater AUM and liquidity. Advantages of DFWX are the factor tilts, disadvantages are the smaller AUM and different tracking.

Historical Performance: Historical performance data is readily available from financial data providers.

Benchmark Comparison: DFWX's performance should be compared to a broad ex-U.S. equity index, such as the MSCI ACWI ex USA Index.

Expense Ratio: 0.09

Average Trading Volume

The average trading volume for DFWX can vary but it is generally moderate, indicating reasonable liquidity.

Bid-Ask Spread

The bid-ask spread for DFWX is typically competitive, reflecting reasonable trading costs.

Market Environment Factors

Global economic growth, interest rate policies of major central banks, geopolitical risks, and currency fluctuations can all impact the performance of DFWX.

Growth Trajectory

DFWX's growth trajectory depends on its ability to attract investors seeking factor-based international equity exposure. No significant changes to strategy or holdings are apparent.

Competitive Edge

DFWX's competitive edge lies in its factor-based investment approach, targeting value and profitability factors which can enhance long-term returns. Dimensional's well-established research and systematic implementation provide a differentiated offering in the ex-U.S. equity market. The fundu2019s low expense ratio also helps in maintaining competitiveness. Its focus on specific factors, such as profitability and value, helps to potentially outperform broad market indexes over the long term.

Volatility

DFWX's volatility will depend on the volatility of the underlying non-U.S. equity markets and the specific factor exposures it targets.

Market Risk

The ETF is subject to market risk associated with global equity investments, including economic downturns, political instability, and currency fluctuations.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation through diversified international equity exposure with a focus on value and profitability factors.

Market Risk

DFWX is best suited for long-term investors seeking a systematic approach to international equity investing with factor tilts.

Dimensional World ex U.S. Core Equity 2 ETF (DFWX) offers a differentiated approach to international equity investing by incorporating value and profitability factors. Managed by Dimensional Fund Advisors, it provides access to a broad range of non-U.S. stocks at a low expense ratio. The ETF is suitable for long-term investors seeking capital appreciation and diversification beyond the U.S. market and who are willing to accept potentially higher tracking error relative to broad market indexes in exchange for the potential of factor-driven outperformance. While smaller than its large competitors, DFWX's investment strategy provides a unique value proposition.

Data Sources:

• Dimensional Fund Advisors website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market share data is approximate and may vary depending on the source and methodology used. Past performance is not indicative of future results.