Dimensional expands ETF offering with small caps, value focus

Yasmine Raso

Senior Journalist

20 August 2024

Dimensional Fund Advisors has announced three new additions to its suite of exchange traded funds (ETFs) available to investors via the Australian Securities Exchange (ASX).

The three new funds offering unique premium opportunities within Australian and global value stocks and global small caps join the three actively managed core equity ETFs first launched in November last year, providing a more broad exposure to Australian and other developed equity markets.

As with the core equity funds, the Dimensional Australian Value Trust (DAVA), the Dimensional Global Value Trust (DGVA) and the Dimensional Global Small Company Trust (DGSM) are available through a “dual-access” structure available through the ASX and other unlisted avenues.

“These component strategies supplement the Australian and Global Core Equity ETFs launched last year and allow financial professionals to tailor asset allocations to meet a range of client needs,” Dimensional Australia’s CEO, Bhanu Singh, said.

“Our strategies offer the benefits of indexing—such as low costs, low turnover, and high diversification— paired with the advantages of flexible implementation that provide a continuous focus on higher expected returns.”

Dimensional first entered the US ETF market in November 2020 before expanding into Australia last year. It managers over AUD$1.1 trillion for clients globally, including more than $50 billion for clients in Australia and New Zealand.

“For four decades, we have focused on empowering investment professionals so they can deliver their clients the best investment experience,” Nathan Krieger, who heads Dimensional’s client group in Australia, said.

“We believe a rules-based investment approach can help deliver a more reliable and smoother markets experience for investors and can help to better address a variety of portfolio goals and aspirations.”