Dimensional Fund Advisors has expanded its ETFs offering with the listing of four new international ETFs on the Chicago Board Options Exchange (Cboe).
The new ETFs offer broadly diversified exposure to core international equities across market caps and styles as well as component solutions focused on international small cap, international small cap value, and international high profitability equities.
“Recent volatility has demonstrated the continued value of broadly diversified portfolios with added flexibility as well as experienced advisors to help keep investors aligned with their financial plans,” says Co-CEO Dave Butler. “The active transparent ETF industry remains relatively nascent, and we believe our approach, which builds on the core principles of indexing by incorporating flexible, daily implementation, will continue to attract investors that believe in investing for the long term.”
The Cboe-listed funds are International Core Equity 2 ETF (Cboe: DFIC)
• Net expense ratio: 0.23 per cent
• Description: The portfolio is designed to purchase a broad and diverse group of non-US companies in developed markets with an emphasis on companies with smaller market capitalisation, lower relative price, and higher profitability.
International Small Cap ETF (Cboe: DFIS)
• Net expense ratio: 0.39 per cent
• Description: The portfolio is designed to purchase small, non-US companies in developed markets.
International Small Cap Value ETF (Cboe: DISV)
• Net expense ratio: 0.42 per cent
• Description: The portfolio is designed to purchase small, non-US companies with low prices in relation to their book values in developed markets.
International High Profitability ETF (Cboe: DIHP)
• Net expense ratio: 0.29 per cent
• Description: The portfolio is designed to purchase large, non-US companies with high earnings or profits from operations in relation to their book value or assets in developed markets.
The four new funds join a growing lineup of Dimensional ETFs, now totalling 20 funds, that complement the firm’s existing mutual funds and expanded separately managed accounts (SMAs) offerings.
“For decades, Dimensional has implemented our systematic approach in international equity markets through low-cost, broadly diversified strategies. Now we are delivering these time-tested core and component strategies within ETFs,” says Co-CEO and Chief Investment Officer Gerard O’Reilly. “Efficiently managing costs, controlling risks, and managing tax impacts are crucial when investing across thousands of securities in international markets. Our flexible investment approach is focused on delivering those results and adding further value over traditional active investing and passive indexing solutions.”