DFAS - DFAS: Cost Of Capital Could Hit Smallcaps Hard - Sell

2024-03-09 02:58:59 ET

Summary

• The Dimensional U.S. Small Cap ETF aims to maximize after-tax value for investors by minimizing capital gains and focusing on long-term gains.
• DFAS has outperformed its benchmark, the Russell 2000, on a pre-tax basis, but is currently facing challenges due to the market's focus on growth stocks.
• The fund is heavily weighted towards Industrials and Financials, with a smaller allocation to Technology, which has helped it perform relatively well.

The Dimensional U.S. Small Cap ETF ( DFAS ) benchmarks against the Russell 2000 Index to offer smallcap exposure to investors in an attractive and relatively inexpensive (0.26% expense ratio) package that attempts to do the following:

maximize the after tax value of a shareholder’s investment. Generally, the Advisor buys and sells securities for the Portfolio with the goals of: (i) delaying and minimizing the realization of net capital gains (e.g., selling stocks with capital losses to offset gains, realized or anticipated); and (ii) maximizing the extent to which any realized net capital gains are long-term in nature (i.e., taxable at lower capital gains tax rates).

For further details see: