DFAC: An Equivalent To A Broad Market ETF

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deepblue4you DFAC strategy Dimensional U.S. Core Equity 2 ETF (NYSEARCA:DFAC) is an actively managed fund launched on 10/04/2007 and listed on 06/14/2021 (price history is available at data providers ...

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Rowe Price U.S. Equity Research ETF","LU0061474960.USD":"天利环球焦点基金AU Acc","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","XOM":"埃克森美孚","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H"},"translate_title":"DFAC：相当于大盘ETF","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IWV":1,"TSPA":1,"SYLD":1,"SCHD":1,"RWL.AU":1,"RWL":1,"DFAC":1,"DGRW":1,"FDN":1,"XOM":0.9,"GOOGL":0.9,"GOOG":0.9,"MSFT":0.9,"BRK.B":0.6},"content_text":"deepblue4you DFAC strategy Dimensional U.S. Core Equity 2 ETF (NYSEARCA:DFAC) is an actively managed fund launched on 10/04/2007 and listed on 06/14/2021 (price history is available at data providers starting on the latter date). Its objective is \"long-term capital appreciation while considering federal income tax implications\". It has a portfolio of 2652 companies, a dividend yield of 1.13% and a total expense ratio of 0.17%. Dividends are paid quarterly. As described in the prospectus by Dimensional, the fund \"invests in companies of all sizes, with increased exposure to smaller capitalization, lower relative price, and higher profitability companies\" compared to a U.S. stock benchmark. Low price is primarily assessed by the price to book value ratio, with possible additional factors like the price to cash flow or price to earnings ratios. High profitability is assessed by earnings or profits from operations related to book value or assets. Additionally, exposure to a company may be modified based on momentum. The metrics used in the strategy may change over time. The fund may also hold futures and options contracts. The portfolio turnover in the most recent fiscal year was 3%, which is very low. DFAC portfolio The portfolio is invested almost exclusively in U.S. companies, in all size segments. Therefore, this article will use as a benchmark the Russell 3000 index, represented by iShares Russell 3000 ETF (IWV). % of asset value by size segment (Chart: author; data: Fidelity) The heaviest sector in the portfolio is information technology (25.1% of asset value), followed by financials (15.1%) and industrials (13.6%). Other sectors are below 11%. Compared to the broad market benchmark, DFAC overweights mostly industrials, energy and materials. It underweights technology, communication, and almost ignores real estate. DFAC sector breakdown (chart: author; data: Dimensional, iShares) The top 10 issuers, representing 24.6% of assets, are listed in the next table with some fundamental ratios. Each of the top 3 names, NVIDIA, Microsoft, and Apple, weighs about 5%. Risks related to other individual companies are low.   Ticker Name Weight (%) EPS growth %TTM P/E TTM P/E fwd Yield%   NVDA NVIDIA Corp. 5.16% 788.45 71.62 45.42 0.03   MSFT Microsoft Corp. 5.02% 25.11 36.74 35.91 0.71   AAPL Apple Inc. 4.88% 9.26 30.46 29.72 0.51   GOOGL, GOOG* Alphabet Inc. 2.35% 45 26.9 23.26 0.46   AMZN Amazon.com, Inc. 1.53% 763.59 50.91 39.78 0   META Meta Platforms, Inc. 1.47% 115.95 28.44 24.5 0.4   LLY Eli Lilly and Co. 1.16% 7.89 124.56 60.84 0.63   XOM Exxon Mobil Corp. 1.08% -44.87 13.88 12.22 3.36   JPM JPMorgan Chase & Co. 0.99% 22.15 11.91 11.85 2.33   BRK.B Berkshire Hathaway Inc. 0.93% 876.68 12.1 21.59 0   Click to enlarge Data: Portfolio123 * The two share series of Alphabet, listed by the fund as distinct holdings, have been grouped in the same line. Fundamentals DFAC is cheaper than IWV regarding valuation ratios, as reported in the next table. Earnings growth and sales growth are close to the benchmark, whereas cash flow growth is significantly higher.     DFAC IWV   Price/Earnings TTM 19.9 23.4   Price/Book 3.17 3.85   Price/Sales 1.79 2.5   Price/Cash Flow 13 15.89   Earnings growth 22.38% 21.39%   Sales growth 7.87% 8.32%   Cash flow growth 11.58% 8.72%   Click to enlarge Source: Fidelity Performance DFAC is almost tied with the Russell 3000 in total return since its listing date, and it has very closely followed the benchmark over the last 12 months, as reported by the charts below. However, price history is short and may not represent the potential of the strategy in the long term. DFAC vs. IWV since listing date (Seeking Alpha) DFAC vs. IWV, 12-month return (Seeking Alpha) Competitors The next table compares characteristics of DFAC and a sample of five factor-based ETFs implementing different kinds of strategies, with a tilt to large companies:  Schwab U.S. Dividend Equity ETF (SCHD) Invesco S&P 500 Revenue ETF (RWL) T. Rowe Price US Equity Research ETF (TSPA) Cambria Shareholder Yield ETF (SYLD) WisdomTree U.S. Quality Dividend Growth Fund ETF (DGRW)      DFAC SCHD RWL TSPA SYLD DGRW   Inception 10/4/2007 10/20/2011 2/19/2008 6/8/2021 5/13/2013 5/22/2013   Expense Ratio 0.17% 0.06% 0.39% 0.34% 0.59% 0.28%   AUM $28.10B $54.97B $3.23B $238.46M $1.22B $12.96B   Avg Daily Volume $49.94M $247.17M $11.76M $7.43M $5.50M $39.41M   Holdings 2699 103 504 331 102 299   Top 10 23.41% 41.65% 23.71% 32.56% 13.00% 37.76%   Turnover 3.00% 28.00% 20.00% 42.20% 41.00% 28.00%   Click to enlarge Data source: Seeking Alpha DFAC has the largest number of holdings and the lowest turnover, by far. The next chart plots total returns since its listing date. TSPA and DGRW are leading, while DFAC is in the middle of the pack. DFAC vs competitors since 6/14/2021 (Seeking Alpha) DFAC is the second-best performer over the last 12 months, behind TSPA, and almost tied with SYLD. DFAC vs competitors, 12-month return (Seeking Alpha) Takeaway  Dimensional U.S. Core Equity 2 ETF is an actively managed fund with a tilt to value and profitability. In accordance with the strategy description, DFAC is cheaper than the Russell 3000 Index regarding valuation ratios. Growth metrics are a bit better too. However, performance since its listing date 3 years ago is very close to the benchmark. Compared to other large cap factor-based ETFs, DFAC has lagged at least 3 of them: TSPA, DGRW and RWL. In summary, DFAC doesn't seem to bring an edge over a broad market index based on 3 years of data history. As its fee is low, it may be considered as an equivalent to a broad ETF like IWV, no more or no less.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2441713282"}