IIndexing has its advantages, including broad diversification, greater transparency and lower costs. However, trying to track a trade index closely also creates constraints that can limit your return potential. There may be a better way to invest, one that combines the benefits of indexing with the ability to outperform benchmarks.
In the next webcast, Put financial science at the service of your clientsGerard O’Reilly, Co-Managing Director and Chief Investment Officer, Dimensional Fund Advisors, will discuss Dimensional’s signature approach to factor investing.
For example, Dimensional ETFs offer a range of smart beta or factor strategies, including Dimensional US Equity ETF (NYSE Arca: DFUS)the Dimensional US Core Equity 2 ETF (NYSE Arca: DFAC)the US Small Cap Dimensional ETF (NYSE Arca: DFAS)and the Dimensional US Targeted Value ETF (NYSE Arca: DFAT).
These more recently launched ETFs are part of the company’s plan to convert tax-managed mutual funds into ETFs, which provide investors with an additional tool to manage capital gains, supporting the funds’ goal of offering higher after-tax returns by minimizing the tax impact.
Dimensional’s investment strategies seek to exploit a consistent, broadly diversified and systematic approach that aims to outperform the market without guessing the market. Strategies within Dimensional’s suite of ETFs have varying inclinations ranging from market weightings to stocks that offer higher expected returns, such as small cap, value and high return stocks.
Dimensional ETFs now offer a range of equity solutions that include core market-wide equity portfolios with varying degrees of focus on drivers of expected returns and component solutions, such as portfolios value and small cap. This suite of strategies offers greater customization of asset allocation, which can help finance professionals meet the specific investment goals and needs of their diverse investor bases.
Financial advisors interested in learning more about factor investing can register for the Tuesday, March 29 webcast here.
Learn more at ETFtrends.com.
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