Quant Giant Dimensional signals a big boost in ETFs with a wave of funds

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    (Bloomberg) – Quantum investment heavyweight Dimensional Fund Advisors is stepping up its foray into the US $ 7.2 trillion exchange-traded fund industry.

    The Austin, Texas-based money manager will launch its first four pension funds Tuesday, and a filing with the Securities and Exchange Commission revealed that it plans to add 10 more equity ETFs. That will increase the company’s offering to a total of 23 ETFs.

    The large expansion underscores Dimensional’s commitment to its ETF business, having quickly enjoyed success with its first funds. Founded by David Booth, the manager raised $ 1 billion in four months before converting $ 29 billion in mutual fund assets into the ETF wrapper.

    Having entered the industry late in November 2020, it is now on the verge of being one of the top 10 issuers by asset at $ 44 billion, according to Bloomberg. Dimensional has approximately $ 653 billion under management, of which $ 120 billion is in fixed income securities.

    The funds launched on Tuesday are all actively managed and bear fees between 0.11% and 0.19%. They are:

    • Dimensional Core Fixed Income ETF (Ticker DFCF)
    • Dimensional Short-Duration Fixed Income ETF (DFSD)
    • Dimensional National Municipal Bond ETF (DFNM)
    • Dimensional inflation-linked securities ETF (DFIP)

    In the meantime, the proposed range of new equity ETFs – which will also be actively managed – will, if approved, cover US and international stocks of varying market capitalizations. Along with the fixed income products that hit the market on Tuesday, they are betting on organic growth rather than converting mutual fund assets. You will be:

    • International Core Equity 2 ETF
    • Emerging Markets Core Equity 2 ETF
    • US small cap value ETF
    • International small-cap ETF
    • International small cap value ETF
    • Emerging Markets Value ETF
    • US ETF with high profitability
    • International ETF with high profitability
    • Emerging Markets ETF with high profitability
    • US real estate ETF

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