DFAC - DFAC: Actively Managed Factor ETF That Underperforms
2024-01-24 18:05:46 ET
Summary
- The Dimensional U.S. Core Equity 2 ETF uses factor investing to pick stocks. Its portfolio consists of over 2,600 securities, with a focus on small-cap value stocks.
- Unfortunately, the DFAC ETF has underperformed a passive Russell 3000 ETF over the past 5 and 10 years.
- Furthermore, there is a lack of clarity on the differences between DFAC and its sibling funds, making it difficult for investors to choose the right fund for their objectives.
Dimensional Fund Advisors has a sterling reputation as a pioneer in the field of factor investing. In fact, Dimensional's founders David Booth and Rex Sinquefield were graduate students of Eugene Fama and Kenneth French at the University of Chicago, widely considered the founding fathers of the Efficient Market Hypothesis and factor investing. Due to the firm's reputation, I was really looking forward to reviewing the Dimensional U.S. Core Equity 2 ETF ( DFAC )....
DFAC: Actively Managed Factor ETF That Underperforms