Dimensional Fund Advisors filed a preliminary registration statement with the Securities and Exchange Commission to launch six actively managed ETFs by converting six mutual funds.
The filing takes advantage of the SEC’s new Rule 6c-11, which streamlines ETF launches by eliminating the requirement for exemptive orders from the SEC for every fund launch.
Here are the six ETFs DFA will launch as conversions from mutual funds, whose assets total approximately $20 billion:
- Dimensional US Equity ETF (converted from Tax-Managed US Equity Portfolio)
- Dimensional US Small Cap ETF (converted from Tax-Managed US Small Cap Portfolio)
- Dimensional US Targeted Value ETF (converted from Tax-Managed US Targeted Value Portfolio)
- Dimension US Core Equity 2 ETF (converted from TA US Core Equity 2 Portfolio)
- Dimensional International Value ETF (converted from Tax-Managed International Value Portfolio)
- Dimensional World ex US Core Equity ETF (converted from TA World ex US Core Equity Portfolio)
Their management fees range from eight to 30 basis points, representing a 17% to 56% reduction in fees, according to DFA, which expects to launch the six ETFs sometime in 2021.