Dimensional Announces Plans to Offer Four Sustainability ETFs
Dimensional Fund Advisors, a global leader in systematic investing, continued expanding its exchange-traded funds (ETF) suite by filing a preliminary registration statement with the Securities and Exchange Commission (SEC) for four new sustainability-focused ETFs. The new funds are designed to pursue lower emissions exposure within portfolios that invest in US, developed international, and emerging market equities as well as global fixed income markets.
“Dimensional is dedicated to providing financial professionals with high-quality solutions to meet investors’ needs and align with their values, including growing interest in sustainability,” said Co-CEO Dave Butler. “The new ETFs build on Dimensional’s experience in managing sustainability strategies in mutual funds and separate accounts over the past decade.”
The ETFs included in today’s filing are:
- Dimensional US Sustainability Core 1 ETF
- Dimensional International Sustainability Core 1 ETF
- Dimensional Emerging Markets Sustainability Core 1 ETF
- Dimensional Global Sustainability Fixed Income ETF
Dimensional’s sustainability strategies, the first of which launched in 2008, offer a patented approach to applying environmental and other sustainability criteria within a robust investment framework. Drawing upon the firm’s work with leading scientists and experience integrating research and data within investment processes, Dimensional’s new strategies are designed to target measurable sustainability goals while seeking broad diversification, efficient cost management, and higher expected returns.
When listed, the four new funds will join a growing lineup of Dimensional ETFs, currently totaling 20 funds with approximately $48 billion in assets under management, further solidifying Dimensional as the largest active ETF issuer by AUM globally.1 Dimensional goes beyond indexing by using a flexible approach to systematically pursue higher expected returns in broadly diversified, low-cost investment solutions across asset classes and vehicle type. For equities, drivers of higher expected returns include size, relative price, and profitability. For fixed income, term and credit premiums largely drive relative performance.
“Our teams have conducted extensive research into ESG considerations and developed a measurable approach to systematically integrating sustainability data into our portfolios,” said Co-CEO and Chief Investment Officer Gerard O’Reilly. “Our approach applies what we believe is the best available data to help investors incorporate their sustainability values in portfolios without sacrificing sound investment principles.”
More information about Dimensional ETFs can be found here: us.dimensional.com/etfs
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About Dimensional Dimensional is a global investment manager with more than 40 years of experience going beyond indexing by providing diversified, low-cost solutions that also target higher expected returns.
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Footnotes
- 1Data provided by Morningstar and Dimensional. Includes active global exchange-traded funds AUM as of 03/31/2022. Fund of funds excluded.
Disclosures
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at dimensional.com. Dimensional funds are distributed by DFA Securities LLC.
This material is for informational purposes only. A registration statement about four new series of the Dimensional ETF Trust has been filed with the Securities and Exchange Commission but has not yet become effective. Information about the series is not complete and may be changed. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions.
ETFs trade like stocks, fluctuate in market value, and may trade either at a premium or discount to their net asset value. ETF shares trade at market price and are not individually redeemable with the issuing fund, other than in large share amounts called creation units. ETFs are subject to risks similar to those of stocks, including those regarding short-selling and margin account maintenance. Ordinary broker commissions may apply. Risks include loss of principal and fluctuating value. Diversification does not eliminate the risk of market loss.
Environmental and social screens may limit investment opportunities for the funds. Fixed income securities are subject to increased loss of principal during periods of rising interest rates, and they are subject to various other risks, including changes in credit quality, liquidity, prepayments, and other factors. International investing involves special risks such as currency fluctuation and political instability. Investing in emerging markets may accentuate these risks. These risks are described in the Principal Risks section of the prospectus.