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.
In addition to the planned ETFs, DFA is launching two previously announced ETFs Wednesday on the NYSE Arca: the Dimensional US Core Equity Market ETF, with a net expense ratio of 12 basis points; and the Dimensional International Core Equity Market ETF, with a net expense ratio of 18 basis points.
“We’re pleased to broaden our ETF platform in a way that can help investors manage taxes even more efficiently,” said Dimensional Co-CEO and Chief Investment Officer Gerard O’Reilly in a statement. “We believe these strategies fill a unique space in the market, providing the benefits of passive investing, including low-cost diversified exposure to stocks, combined with the advantages of active investing, such as higher expected returns, flexible trading, robust daily portfolio management, and risk management.”
— Check out DFA Announces More Fund Fee Cuts on ThinkAdvisor.