SEC Issues Notice to Approve Dimensional’s Application to Offer ETF Share Classes
The US Securities and Exchange Commission (SEC) has issued a public notice that it intends to approve Dimensional’s exemptive relief application to offer exchange-traded fund (ETF) and mutual fund share classes.
Since filing for exemptive relief in July of 2023, Dimensional, the largest active ETF issuer in the US, has consistently advocated for the benefits that the share class structure could provide both mutual fund-class and ETF-class shareholders. Mutual fund-class shareholders could benefit through lower transaction costs and greater tax efficiency, while ETF-class shareholders could also benefit from more efficient rebalancing using mutual fund cash flows and lower total portfolio transaction costs, among other benefits of scale passed along to both sets of investors.
“We are appreciative of the opportunity that this notice of application represents, and grateful for the positive, collaborative interactions we have had with the SEC staff throughout the process,” said Gerard O’Reilly, Dimensional’s Co-CEO and Co-Chief Investment Officer. “The share class structure offers significant benefits in cost efficiencies, tax management, and greater choice for both mutual fund and ETF investors, and we look forward to seeing these efforts manifest in real-world solutions to better serve investor needs.”
Dimensional primarily serves investors who access the firm’s funds through financial advisors, intermediaries, and institutions. The firm began offering low-cost systematic strategies to institutions in 1981 and was an early supporter of industry shifts toward more investor-centric independent advice.
“For decades, we’ve worked alongside financial professionals with a shared goal: helping investors achieve better outcomes,” said Dave Butler, Co-Chief Executive Officer. “Broadening access to ETF share classes represents a meaningful evolution—one that enhances flexibility and supports more-tailored client solutions.”
Dimensional’s actively managed strategies go beyond indexing by using a flexible, daily approach to implementation while retaining many of the advantages of passive investing, including low fees and broad diversification. Dimensional launched its first ETFs in November 2020, following the release of the SEC’s “ETF Rule” (Rule 6c-11). This regulatory change permitted Dimensional to bring the consistent investment process the firm has refined and advanced for more than 40 years to ETFs for the first time. Dimensional has 41 ETFs with over $220 billion in AUM, and the firm continues to build its suite alongside its mutual fund and separately-managed-account offerings.
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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. As of June 30, 2025, the firm manages $853 billion for investors worldwide. For more information, please visit dimensional.com.
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 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.
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. There is no guarantee strategies will be successful.
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 risk similar to those of stocks, including those regarding short-selling and margin account maintenance. Brokerage commissions and expenses will reduce returns.
Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value
Dimensional Fund Advisors does not have any bank affiliates.