Dimensional International Core Equity 2 ETF

DFIC

Market cap $14.4B

DFIC offers attractive characteristics such as a reasonable expense ratio, dividend yield, and liquidity. However, DFAX shows more resilience, with better diversification, exposure to emerging markets, and outperformance over DFIC in shorter time frames. The current economic climate favors DFAX as a hedge against high-growth portfolios, with potential for EM companies to rerate against the S&P 500.

DFIC ETF initiated with a Sell rating due to overly diversified approach. PM team's multiple responsibilities and lack of personal investment in fund raise concerns. DFIC's portfolio of 4,000 holdings limits potential for meaningful outperformance, resembling closet indexing approach.

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.