Bringing you live news and features since 2006 

The US’s Dimensional reduces fees on mutual funds and ETFs

RELATED TOPICS​

US fund managers Dimensional Fund Advisors is to reduce management fees across 47 mutual funds and three ETFs, effective February 28, 2022. 

The changes represent a 13 per cent reduction on an asset-weighted basis1 for the impacted funds, which cover a broad range of investment solutions, from global equity and fixed income strategies to sustainability and social funds.

The firm writes that throughout its history, Dimensional has continually enhanced its investment solutions and sought to pass efficiencies and benefits of scale along to clients. The firm says that it is proactive in taking a long-term view, pricing by strategy rather than product wrapper as it seeks to deliver value over index, traditional active, and systematic active alternatives.

The move builds on the momentum of Dimensional’s successful ETF launches and mutual fund conversions over the past year. The firm’s current lineup of 13 ETFs has grown to more than USD42 billion in assets under management during that time, putting Dimensional on the cusp of becoming one of the top 10 issuers by assets.

“For 40 years, Dimensional has been an industry leader in providing low-cost, diversified strategies,” Dimensional Co-CEO and Chief Investment Officer Gerard O’Reilly says. “We are committed to continuing to offer investors robust solutions that provide the benefits of indexing with the higher expected returns and increased risk management of flexible, daily implementation.”

The firm writes that it has a track record of regularly reviewing and reducing fees for the benefit of clients and investors. Morningstar places the majority of the firm’s management fees in the lowest decile relative to peer funds, the firm says.
 
“We’ve always sought to ensure our investment strategies are priced competitively across asset classes and to empower financial professionals to make the best decisions for those they serve,” Dimensional Co-CEO Dave Butler says. “Clients want the flexibility to customise solutions. By offering a growing suite of mutual funds and ETFs and expanding our separately managed accounts (SMA) offering, we feel confident that we’re well positioned to serve clients’ current and future needs.”

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by