Dimensional International Value ETF

DFIV

Market cap $19.3B

DFA Dimensional World ex US Core Equity 2 ETF offers broad international exposure with a value tilt. DFAX has outperformed the ex-U.S. benchmark IXUS by 1.7% annualized since 2021, with similar volatility. The fund's portfolio has low company-specific risk and is diversified across sectors and countries, with 67.4% in developed markets.

Market-cap weighting has a structural flaw that most investors overlook: it automatically overweights whatever has already gotten expensive.

Dimensional International Value ETF offers systematic, active value exposure to ex-US developed markets, balancing valuation discounts with profitability screens. DFIV consistently outperforms passive international value ETFs, driven by active selection, smaller large-cap tilts, and avoidance of value traps. Holding periods must be multi-year to realize value; DFIV delivers stabilization against valuation risk, not volatility or global macro shocks.

2025 will go down as another year of record-breaking achievements for exchange-traded funds (ETFs). Among the past year's highlights was a record number of mutual funds converting to ETFs, as noted by Ben Johnson, Morningstar Head of Client Solutions, via a LinkedIn post.

International value stocks spent years in the shadows of U.S. growth. Then came 2025.

International value stocks have underperformed US counterparts for over a decade.

The Dimensional International Value ETF invests in undervalued stocks of developed countries. Over the past year, the actively managed fund has outperformed passively managed funds.

It's been a good year for international equity ETFs. As a category, broad exposure funds tapping into both developed and emerging market equities have delivered outsized gains relative to U.S. markets this year, as well as much sought portfolio diversification.

Low valuations offer compelling upside for these international ETFs.

Investors can eye global equity funds as AI bubble fears, U.S. market risks and Fed easing fuel demand for international diversification.