DFSV - DFSV: An Active Small-Cap Fund That Works
2024-06-28 12:21:02 ET
Summary
- Small-cap passive averages are stagnant due to "zombie companies" with high debt and low margins.
- Dimensional US Small Cap Value ETF is an actively managed fund with diversified holdings and a value tilt.
- The DFSV ETF has outperformed passive funds like iShares Russell 2000 Value ETF and benefits from Dimensional's factor-based investing expertise.
I’ve discussed small-caps over the past year, given the fact that passive small-cap averages have largely gone nowhere. A lot of small-cap passive averages have “zombie companies” which are saddled with high debt and have low margins. These companies may not survive in a higher for longer interest rate environment. As such, those companies have held back those passive averages. Well - if that’s the case, why not consider some active portfolio management that can eliminate those stocks? One fund worth considering that does just that is the Dimensional US Small Cap Value ETF ( DFSV )....
DFSV: An Active Small-Cap Fund That Works