Dimensional Fund Advisors Lists US Micro Cap ETF
Dimensional Fund Advisors today launched the US Micro Cap ETF (NYSE Arca: DFMC), the industry's first actively managed share class exchange-traded fund (ETF). Dimensional US Micro Cap ETF is a share class of the firm’s first fund, the US Micro Cap Portfolio, which launched as a mutual fund in 1981 and pioneered a systematic approach to investing in the smallest stocks in the US market. With a track record of more than 40 years, the fund has delivered 1.44 percentage points of annualized outperformance over its benchmark since its first full month.1
“We have worked closely with the SEC and the firm’s mutual fund and ETF boards over the last several years to broaden investor access to the potential benefits of ETF share classes, including increased tax efficiency and reduced costs from scale,” said Co-CEO and Co-CIO Gerard O’Reilly. “It is fitting for Dimensional to add an ETF share class to its very first fund—a dedicated micro cap strategy that can provide diversification from the broad market and increasingly concentrated large cap strategies.”
In 2019, Dimensional engaged the SEC staff on ETF share class exemptive relief (from the Investment Company Act of 1940), and in 2023, Dimensional filed its application for exemptive relief. The firm has been a strong advocate for the potential benefits that the share class structure could provide both mutual fund-class and ETF-class shareholders. Mutual fund-class shareholders can gain from lower transaction costs and greater tax efficiency, while ETF-class shareholders may benefit from more efficient rebalancing using mutual fund cash flows and lower total portfolio transaction costs.
“Dimensional clients have long benefited from the firm’s expertise in managing systematic investment strategies that go beyond indexing while maintaining low fees and broad diversification,” said Dave Butler, Co-CEO. “Our firm deeply values our connections with institutions and advisors around the world. Today’s launch is a big step forward in continuing to expand our offerings to meet evolving client needs.”
Dimensional is the largest active ETF issuer in the US, with more than $255 billion (USD) in ETF assets under management across more than 40 funds.2 The firm crossed $1 trillion (USD) in global AUM earlier this year in its offerings across asset classes—solutions all backed by a consistent investment philosophy guided by financial science.3
Footnotes
- 1. As of December 31, 2025. Returns prior to share class inception are based on the performance of the fund’s oldest share class. First full month begins January 1, 1982.
- 2. Based on AUM as of January 31, 2026, updated on February 5, 2026. Data provided by Morningstar. Dimensional data provided internally.
- 3. Dimensional announced on February 9, 2026, that the firm’s global AUM crossed $1 trillion USD. Firm AUM was $944 billion on December 31, 2025.
About Dimensional Fund Advisors
Dimensional has been applying financial science to investing since 1981. The firm is driven by an evidence-based approach, Nobel Prize-winning insights, and decades of expertise working to outperform benchmarks and peers while maintaining low costs and diversification. Dimensional goes where the science leads, continually innovating to improve outcomes for investors. Dimensional is headquartered in Austin, Texas, and has 15 global offices across North America, Europe, Asia Pacific, and Australia. For more information, please visit dimensional.com.
Disclosures
The US Micro Cap ETF (DFMC) has a gross expense ratio of 0.43% and net expense ratio of 0.41%. Fee and expense information are as of the prospectus dated February 28, 2026. 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 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 reflects the gross expense ratio of the Portfolio after taking into account any such fee waiver and/or expense assumption arrangements. The gross expense ratio reflects the Total Annual Fund Operating Expenses as disclosed in the prospectus. Please read the Portfolio’s prospectus for details and more information.
Performance as of December 31, 2025
Performance data shown represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain the most current month-end performance data, visit dimensional.com.
Standardized performance and complete information on investment objectives, risks, advisory fees, and expenses of Dimensional’s funds are available here: https://www.dimensional.com/us-en/funds.
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.