Dimensional US Targeted Value ETF

DFAT

Market cap $11.5B

Dimensional U.S. Targeted Value ETF combines value and quality in small caps, offering attractive valuations and strong fundamentals, with outperformance and lower volatility than the Russell 2000. The fund is deeply value-oriented, overweight in financials, consumer staples, and energy, and underweight in pricier sectors like tech and healthcare. DFAT trades at a significant discount to the Russell 2000, boasts higher profitability, and delivers better risk-adjusted returns than most small-cap value peers.

These US ETFs can be the cornerstones of any portfolio.

Dimensional U.S. Targeted Value ETF focuses on small-cap value stocks and was listed in 2021, inheriting from a fund launched in 1998. DFAT portfolio is diversified in more than 1500 holdings but has a heavy weight in the financial sector. DFAT is superior to the Russell 2000 Value Index regarding both fundamentals and historical returns.

DFAT focuses on small and mid-cap companies that are relatively undervalued and have higher profitability. The methodology is sound, considering what indicators have the best chance to identify stocks that will outperform. The fund has outperformed its benchmark index since inception, as well as other relevant funds.