Bloomberg: Dimensional Debuts ETF Share Class After SEC Approval
Bloomberg recently published an article about Dimensional launching the industry’s first actively managed share class exchange-traded fund (ETF)—the US Micro Cap ETF, which is a share class of the firm’s first fund, the US Micro Cap Portfolio.
“We designed this fund for institutional investors at a time when they were concerned about being overly concentrated in US large caps—that was 45 years ago, so in some ways, history repeats itself,” Joel Schneider, the firm’s Deputy Head of Portfolio Management, North America, says in the article. “We now have an ETF share class with a 45-year track record.”
The Bloomberg article also cites an opinion piece by Securities and Exchange Commission Chairman Paul Atkins, published in The Washington Post last month, that credits the share class model with extending “a major tax break to millions of people investing to build wealth” because ETFs won’t be exposed to the capital-gains tax liability that mutual-fund shareholders face when assets are sold off to meet redemptions.
Read the Bloomberg article here.
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