Dimensional Fund Advisors (DFA) is cutting the management fees of 33 equity mutual funds by 15% on an asset-weighted basis, effective Feb. 28, 2021.
This will be the second management fee cut for most of the funds within a year. Last December the firm, whose funds are sold through advisors, announced management fee cuts on 77 funds equal to 8% on an asset-weighted basis. DFA fund management fees constitute the bulk of the net expense ratios for its funds.
The nearly 40-year-old DFA has a track record of regularly reviewing and reducing fees.
“We want to empower financial professionals so they can make the best decision for those they serve,” Dave Butler, Co-CEO, said in a statement. “The evolution and growth of our investment offering, priced by strategy rather than product wrapper, keeps the focus where it should be — on the investment engine and giving financial professionals more flexibility and choice.”
While fee cuts are nothing new for DFA, its planned entree into ETFs is. The firm has filed registration statements with the SEC to trade three actively managed ETFs — U.S., international and emerging markets core core ETFs — which it expects to bring to market before year-end.
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