Dimensional International Sustainability Core 1 ETF (DFSI)

Overview

The Dimensional International Sustainability Core 1 ETF (DFSU) seeks long-term capital appreciation by investing in a broad and diverse portfolio of international (non-U.S.) companies that exhibit sustainability characteristics. It focuses on companies with lower carbon emissions and positive environmental impact.

Reputation and Reliability

Dimensional Fund Advisors (DFA) is a well-regarded investment firm known for its systematic, research-driven approach to investing.

Management Expertise

DFA has a long history of managing factor-based and sustainable investment strategies, with a seasoned team of investment professionals.

Goal

To achieve long-term capital appreciation by investing in international companies demonstrating sustainability characteristics.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but uses a systematic investment approach to select companies based on factors such as size, relative price, profitability, and sustainability criteria.

Composition The ETF primarily holds stocks of companies located in developed and emerging markets outside the United States. It may also invest in other investment companies.

Market Share: Data is difficult to accurately determine without access to specific market data platforms that track ETF market share within the international sustainability category.

Total Net Assets (AUM): 48050000

Key Competitors

• VEU
• IXUS
• VXUS
• ESGU

Competitive Landscape

The international ETF market is highly competitive. DFSU differentiates itself through its sustainability focus and DFA's systematic investment approach. Competitors often have lower expense ratios or wider brand recognition.

Historical Performance: Historical performance data needs to be pulled from financial data providers over different time periods.

Benchmark Comparison: The ETF's performance should be compared to a broad international equity benchmark and a sustainability-focused benchmark.

Expense Ratio: 0.27

Average Trading Volume

The average daily trading volume for DFSU is moderate, which can impact ease of entry and exit.

Bid-Ask Spread

The bid-ask spread for DFSU is generally reasonable, but can widen during periods of market volatility.

Market Environment Factors

Economic growth in developed and emerging markets, currency fluctuations, interest rate changes, and investor sentiment towards ESG investments impact DFSU.

Growth Trajectory

The ETF's growth trajectory depends on the increasing demand for sustainable investments and its ability to deliver competitive returns within its risk profile.

Competitive Edge

DFSU benefits from Dimensional Fund Advisors' established research-driven investment process. The ETF's focus on sustainability criteria and lower carbon emissions aligns with the increasing investor interest in ESG factors. Its systematic approach seeks to capture factor premiums while managing risk effectively. DFA's reputation for consistent and disciplined execution further strengthens its competitive position. However, it faces competition from larger, more established international ETFs with lower expense ratios.

Volatility

DFSU's volatility is expected to be similar to other international equity ETFs, influenced by global market conditions and currency fluctuations.

Market Risk

The ETF is subject to market risk, including the risk of declines in international equity markets due to economic downturns, political instability, or other adverse events.

Ideal Investor Profile

The ETF is suitable for investors seeking long-term capital appreciation through exposure to international equities with a focus on sustainability.

Market Risk

DFSU is best for long-term investors who are comfortable with the risks associated with international investing and who prioritize sustainability factors.

The Dimensional International Sustainability Core 1 ETF (DFSU) provides exposure to a diversified portfolio of international companies demonstrating sustainability characteristics. It leverages DFA's systematic investment approach to capture factor premiums while managing risk. The ETF is suitable for long-term investors seeking capital appreciation and aligning their investments with ESG values. Its expense ratio is higher than some competitors, but DFA's research-driven process may justify the cost. Overall, DFSU is a solid option for investors seeking a sustainable international equity investment.

Data Sources:

• Dimensional Fund Advisors Website
• Various financial data providers (Yahoo Finance, Bloomberg, etc.)

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.