Dimensional International Value ETF

DFIV

Market cap $13.6B

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

This trio of Silver-rated funds stands out.

It's been a great year for international equity ETF investors. Will it persist after Nvidia Q1 results?

The current high level of uncertainty makes predicting individual company performance on a micro-economic level unrealistic. Instead of sharing an in-depth piece on one long idea, I am sharing a basket of longs I have recently bought during this market decline. Technical Analysis has led me to put cash to work back in the market.

Dimensional International Value ETF is invested in over 400 international companies with value characteristics. The DFIV ETF portfolio is well-diversified, with a focus on Japan and financials. Not only valuation but also growth metrics look good compared to an international benchmark.

Dimensional International Value ETF is an international value fund focusing on undervalued equities outside the U.S., with a competitive expense ratio of 0.27%. The DFIV fund is well-diversified with top holdings in oil and gas, financials being the largest sector allocation, and Japan as the largest country allocation. DFIV provides exposure to discounted stocks with potential for higher returns, but also carries risks such as foreign securities and currency risk.

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.

Dimensional International Value ETF is an actively managed fund investing in companies with value characteristics outside the U.S. The portfolio is well-diversified across holdings, but quite heavy in Japanese companies and in financials. Not only valuation, but also growth metrics, dividend and performance look attractive.

Listed in 2021, DFIV has an investment strategy focused on developed-world equities (outside the U.S.) with value characteristics. For an active strategy, DFIV has a reasonable expense ratio of just 27 bps. Its AUM of $6.1 billion is one of the largest in the sub class. The fund offers a mostly interesting value story with an overall strong performance since September 2021.