Dimensional US Sustainability Core 1 ETF (DFSU)

Overview

The Dimensional US Sustainability Core 1 ETF (DFSU) seeks long-term capital appreciation by investing in a broad and diverse portfolio of U.S. companies while emphasizing sustainability considerations.

Reputation and Reliability

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

Management Expertise

DFA has a seasoned management team with extensive experience in quantitative investing and sustainable strategies.

Goal

To achieve long-term capital appreciation while prioritizing companies with strong sustainability practices.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but employs a systematic, flexible investment approach focused on companies with smaller market capitalizations and relatively high profitability, while excluding the bottom 10% of securities based on sustainability characteristics.

Composition Primarily invests in U.S. equities with a tilt towards smaller cap and value stocks, incorporating environmental, social, and governance (ESG) factors.

Market Share: DFSU's market share is relatively small compared to broader US equity ETFs, reflecting its niche focus on sustainability within a core equity strategy.

Total Net Assets (AUM): 1360000000

Key Competitors

• ESGU
• SUSL
• VSGX

Competitive Landscape

The competitive landscape consists of established ESG-focused ETFs. DFSU distinguishes itself through its systematic investment process and integrated sustainability approach. ESGU is much larger and tracks a broad ESG index, while SUSL focuses on companies with high ESG ratings. VSGX invests in companies with strong ESG practices relative to their sector peers. DFSU faces the disadvantage of being a newer entrant with lower AUM compared to ESGU, but it has potential competitive advantages with its unique approach.

Historical Performance: Past performance does not guarantee future results. Data needs to be updated to be current.

Benchmark Comparison: To accurately gauge the ETF's effectiveness, performance should be compared to benchmarks such as MSCI KLD 400 Social Index or similar ESG benchmarks.

Expense Ratio: 0.11

Average Trading Volume

The average trading volume for DFSU provides reasonable liquidity for most investors, but large trades may experience some price impact.

Bid-Ask Spread

The bid-ask spread for DFSU is generally tight, indicating relatively low transaction costs.

Market Environment Factors

Economic indicators, sector growth, and market sentiment toward ESG investing influence DFSU. Increased awareness of sustainable investing will likely favor DFSU's holdings.

Growth Trajectory

DFSU's growth will depend on increasing investor demand for sustainable investment options and its ability to deliver competitive returns relative to conventional benchmarks. Changes to strategy and holdings may be necessary to adapt to new sustainability considerations and market trends.

Competitive Edge

DFSU benefits from DFA's strong reputation and research-driven process. Its systematic approach to integrating sustainability into a core equity strategy sets it apart. DFA's focus on smaller capitalization companies and profitability further differentiates DFSU from its competitors. The ETF's commitment to excluding companies with poor sustainability practices enhances its appeal to socially conscious investors. DFSU's integrated approach to sustainability and factors may allow it to offer long-term value.

Volatility

DFSU's volatility should align with that of the broader U.S. equity market but could be slightly higher given its focus on smaller capitalization companies.

Market Risk

DFSU is subject to market risk inherent in equity investing and the specific risks associated with its sustainability criteria. Changes in the regulatory landscape and sustainability standards could also affect the ETF's performance.

Ideal Investor Profile

The ideal investor for DFSU is a long-term investor seeking capital appreciation and aligning their investments with sustainability values.

Market Risk

DFSU is suitable for long-term investors and passive index followers who want to incorporate ESG considerations into their core equity holdings.

Dimensional US Sustainability Core 1 ETF (DFSU) offers exposure to the U.S. equity market with a focus on companies exhibiting strong sustainability characteristics. DFSU utilizes a systematic and research-driven approach to integrate sustainability. It is issued by Dimensional Fund Advisors, a well-regarded firm with strong reputation for providing investment solutions. DFSU could be suitable for long-term investors who want to integrate ESG factors into their core equity portfolio. Given the sustainability focus, the ETF's performance and demand depend on the market sentiment towards ESG investments.

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. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.