Dimensional Extends ETF Share Class Benefits to More Than $250 Billion in Assets
Dimensional Fund Advisors, one of the largest issuers of active exchange-traded funds (ETFs) globally, today announced that the firm intends to merge eight of its US equity ETFs into ETF share classes of the firm’s funds with similar investment strategies. As part of this merger and the resulting efficiencies of scale, the firm announced fee reductions across these funds.
Dimensional is a global investment manager with over $1 trillion in assets under management and more than 45 years of implementing systematic investment strategies. The firm has been a strong advocate for the investor benefits of ETF share classes within funds, which can lower transaction costs, enhance tax efficiency, and enable more efficient rebalancing.
Dimensional was the first active manager to receive ETF share class exemptive relief, in 2025, and launched the industry’s first active ETF share class earlier this year with Dimensional’s US Micro Cap ETF (DFMC), which is an ETF share class of the firm’s first fund.
Gerard O’Reilly, Co-CEO and Co-CIO, said, “We have long championed broader availability of ETF share classes, recognizing the potential tax efficiency, cost savings, and economies of scale this structure can offer investors. The future of Dimensional’s fund offering is one where mutual funds and ETFs coexist—offering investors the benefits of dual access points to Dimensional’s robust research and implementation. ETF share classes simplify allocation decisions by making investment philosophy the primary consideration when selecting investments, not fund wrappers.”
Announced Mergers
The fund mergers bring together approximately $250 billion in assets—$100 billion in ETFs and $150 billion in mutual funds—into funds that will offer both mutual fund and ETF share classes.1 Adding ETF share classes to funds can allow investors to better prioritize what matters most to long-term outcomes: choosing an investment strategy they can stick with. Investors can have ETF and mutual fund access points to a single fund, while also benefitting from the flexibility to convert from the mutual fund class to the ETF class.
Following the fund mergers, Dimensional expects that the ETF share classes will be listed with the same ticker as the prior, standalone ETF. For example, Dimensional’s US Core Equity 2 ETF, the world’s largest active ETF by AUM,2 will maintain its ticker, DFAC. Dimensional’s ETF assets under management are approximately $290 billion.1
Announced Fee Reductions
As a result of the efficiencies created by merging these assets, Dimensional also announced targeted management fee and expense reductions of 9% on an asset-weighted basis, effective November 1, 2026.3
Dimensional has a track record of regularly reviewing and reducing fees for the benefit of investors, which has led to many reductions throughout the firm’s history.
Footnotes
- 1. Source: Dimensional. AUM as of May 31, 2026.
- 2. Source: Morningstar. AUM as of May 31, 2026.
- 3. Asset-weighted average calculated using AUM as of May 31, 2026, for the institutional class.
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4. The Portfolio has entered into fee waiver and/or expense assumption arrangements with the Advisor. In these cases, the Advisor has contractually agreed, under certain circumstances, to waive certain fees and/or assume certain expenses of the class of the Portfolio. The fee waiver will remain in effect through February 28, 2027, and may only be terminated by the Portfolio's Board of Directors/Trustees prior to that date. The net expense ratio of the class reflects the gross expense ratio of such class of the Portfolio after taking into account any such fee waiver and/or expense.
Standalone ETF Current Expenses
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 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. Brokerage commissions and expenses will reduce returns.
Risks include loss of principal and fluctuating value.
Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.
Small and micro cap securities are subject to greater volatility than those in other asset categories.
There is no guarantee strategies will be successful.
Diversification neither assures a profit nor guarantees against loss in a declining market.