Dimensional US Core Equity 2 ETF

DFAC

Market cap $38.1B

Dimensional US Core Equity 2 ETF offers broad, diversified US equity exposure with disciplined valuation screens and a tilt toward smaller companies. DFAC trades at a 15.6% P/E discount to the Russell 3000, but lags on growth and profitability, reflecting its conservative sector allocations. Performance is mid-range: DFAC underperforms the Russell 3000 and several peers, with higher volatility and steeper drawdowns in downturns.

On this week's episode of ETF Prime, VettaFi's Head of Research Todd Rosenbluth discusses the rise of active ETFs and anticipated ETF share class structure. Later, Fidelity's Eric Granat and Christine Thorpe spotlight the Fidelity Hedged Equity ETF (FHEQ) and the Fidelity Total Bond ETF (FBND).

The actively managed ETF industry is now roughly the market cap of Berkshire Hathaway — and one expert thinks trade risks could boost interest even higher.

Markets are coming off back-to-back gains of more than 20% each on an annual basis. That's historically rare, and the chances of a hat trick in 2025 are slim to none.

The growth of active ETFs has propelled a wave of mutual fund-to-ETF conversions. Nearly 80% of all new product launches in both the third quarter and for the full year have been actively managed.

Dimensional U.S. Core Equity 2 ETF is an actively managed fund with a tilt to value and profitability. DFAC is cheaper than the Russell 3000 index regarding valuation ratios, and growth metrics are a bit better too. The Fund's performance has closely followed the benchmark, and compared to other factor-based ETFs, it has lagged behind some competitors.

Active ETF strategies have stormed the scene over the past year and are growing at a dizzying pace. First-quarter net inflows into actively managed ETFs surged past the previous record to $66 billion.

The trend towards active ETFs reflects a broader shift in investment strategies, with advisors and investors alike recognizing the potential benefits of actively managed funds.

To celebrate the pending Exchange conference, VettaFi and some key industry partners were at the Nasdaq MarketSite to help ring the opening bell last week. Exchange will be the industry's largest ETF-, and most valuable advisor-focused, conference.

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.