Average Daily Volume
2.87M
Fund Overview
The Dimensional U.S. Core Equity 2 ETF (DFAC) is a passively managed exchange-traded fund that seeks to track the performance of the Dimensional U.S. Core Equity 2 Index. This ETF focuses on investing in a broad and diverse range of U.S. companies, with an emphasis on small- and mid-cap stocks. DFAC employs a systematic investment approach that integrates academic research and cost-efficient portfolio construction to capture the dimensions of expected returns. The fund is designed for long-term investors seeking exposure to the U.S. equity market with a tilt toward smaller companies, which historically have offered higher return potential. DFAC is part of Dimensional Fund Advisors' lineup, known for its evidence-based investment strategies.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
4 %
- Dividend Date
-
Why Invest in the DFAC ETF?
Potential Benefits
- Provides diversified exposure to U.S. small- and mid-cap stocks, which have historically offered higher return potential than large caps over long periods.
- Employs a systematic, research-driven approach that seeks to capture dimensions of expected returns identified in academic literature.
- Lower expense ratio compared to many actively managed small-cap funds, potentially enhancing net returns for investors.
- Offers tax efficiency typical of ETFs, with in-kind creation/redemption processes that can minimize capital gains distributions.
- Backed by Dimensional Fund Advisors' extensive experience in factor-based investing and portfolio construction.
Potential Risks
- Small- and mid-cap stocks tend to be more volatile than large-cap stocks, leading to potentially sharper price swings.
- Factor tilts may underperform during certain market conditions, particularly when growth stocks outperform value stocks.
- Concentration in U.S. markets means investors miss out on potential diversification benefits from international exposure.
- Passive strategy means the fund will fully participate in market downturns without defensive positioning.
- Liquidity risk may be higher for some small-cap holdings, potentially impacting trading in volatile markets.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+2.8%
|
+0.7%
|
-4.9%
|
+9.1%
|
+4.2%
|
+0.6%
|
+0.3%
|
+2.0%
|
-1.8%
|
+1.2%
|
-
|
-
|
| 2025 |
+3.1%
|
-1.9%
|
-5.5%
|
-2.2%
|
+6.1%
|
+5.0%
|
+2.2%
|
+3.0%
|
+2.5%
|
+1.2%
|
+1.2%
|
+0.5%
|
| 2024 |
+0.1%
|
+5.1%
|
+4.1%
|
-4.7%
|
+4.7%
|
+1.4%
|
+3.4%
|
+1.5%
|
+1.6%
|
-0.8%
|
+7.2%
|
-4.8%
|
| 2023 |
+7.0%
|
-2.2%
|
+0.5%
|
+0.6%
|
-1.2%
|
+7.6%
|
+3.9%
|
-2.3%
|
-4.6%
|
-3.3%
|
+8.7%
|
+6.5%
|
| 2022 |
-5.4%
|
-1.2%
|
+2.1%
|
-7.8%
|
+0.9%
|
-8.9%
|
+9.1%
|
-3.5%
|
-9.0%
|
+9.8%
|
+5.6%
|
-5.4%
|
| 2021 |
-0.1%
|
+5.2%
|
+4.5%
|
+4.4%
|
+1.2%
|
+1.7%
|
+0.4%
|
+2.5%
|
-4.1%
|
+5.9%
|
-1.3%
|
+4.7%
|
| 2020 |
-1.8%
|
-9.0%
|
-16.5%
|
+13.5%
|
+5.5%
|
+2.0%
|
+5.2%
|
+6.3%
|
-3.4%
|
-0.9%
|
+13.0%
|
+5.1%
|
| 2019 |
+9.1%
|
+3.9%
|
+0.1%
|
+4.5%
|
-7.5%
|
+7.6%
|
+1.4%
|
-3.4%
|
+2.7%
|
+2.1%
|
+3.8%
|
+3.0%
|
| 2018 |
+4.5%
|
-3.9%
|
-1.3%
|
+0.1%
|
+2.7%
|
+0.3%
|
+3.3%
|
+3.2%
|
-0.5%
|
-8.1%
|
+1.7%
|
-10.5%
|
| 2017 |
+1.5%
|
+2.8%
|
-0.2%
|
+0.8%
|
-0.1%
|
+1.5%
|
+1.5%
|
-0.7%
|
+3.9%
|
+1.9%
|
+3.4%
|
+1.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
5.1 % |
|
MSFT
|
MICROSOFT CORP |
4.5 % |
|
NVDA
|
NVIDIA CORP |
4.4 % |
|
META
|
META PLATFORMS INC CLASS A |
2.4 % |
|
AMZN
|
AMAZON.COM INC |
1.9 % |
|
GOOGL
|
ALPHABET INC CLASS A |
1.2 % |
|
BRK-B
|
BERKSHIRE HATHAWAY INC CLASS B |
1.1 % |
|
JPM
|
JPMORGAN CHASE & CO |
1.1 % |
|
LLY
|
ELI LILLY AND CO |
1.1 % |
|
XOM
|
EXXON MOBIL CORP |
1.0 % |
Top 10 holdings shown, out of 2 total holdings.
Related ETFs: DFAC vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
DFAC tracks the Dimensional U.S. Core Equity 2 Index, which includes a broad range of U.S. companies with a tilt toward small- and mid-cap stocks. The index employs a multi-factor approach that considers dimensions of expected returns identified in academic research, including company size, relative price, and profitability. The fund holds hundreds of stocks across all sectors, with weights determined by market capitalization but adjusted for liquidity and other practical considerations. DFAC is rebalanced regularly to maintain its target exposure profile, with portfolio turnover typically lower than actively managed small-cap funds. The strategy avoids making bets on individual stocks or market timing, instead focusing on persistent sources of expected returns.
Frequently Asked Questions
What makes DFAC different from a standard small-cap index ETF?
DFAC incorporates academic research on factors like company size, relative price, and profitability in its portfolio construction, rather than simply tracking a market-cap weighted small-cap index.
How often does DFAC rebalance its holdings?
While the exact schedule isn't disclosed, Dimensional typically rebalances its funds as needed to maintain target exposures, with turnover generally lower than actively managed funds.
Does DFAC pay dividends?
Yes, DFAC pays quarterly dividends from the underlying stocks in its portfolio, though yields may be lower than value-oriented or large-cap funds.
Is DFAC suitable for a retirement account?
DFAC can be appropriate for retirement accounts with long time horizons, though investors should be comfortable with the higher volatility of small-cap stocks.
How does DFAC's expense ratio compare to similar ETFs?
DFAC's expense ratio is competitive with other factor-based small-cap ETFs, though slightly higher than some plain vanilla small-cap index ETFs.
Industry Overview
The DFAC ETF provides exposure to the U.S. small- and mid-cap equity market, a segment known for its growth potential but also higher volatility compared to large-cap stocks. Small-cap companies often have greater room for expansion and can be more nimble in adapting to market changes, though they typically carry higher business risk. The U.S. small-cap market is diverse, spanning all sectors of the economy, and has historically delivered premium returns over long periods, though with more pronounced short-term fluctuations. DFAC offers investors a systematic way to access this market segment while incorporating insights from decades of academic research on factors that influence stock returns.
Alternative Comparison
Compared to pure small-cap ETFs like IWM (iShares Russell 2000 ETF), DFAC takes a more nuanced approach by including mid-caps and applying factor tilts, potentially offering better risk-adjusted returns. Unlike VB (Vanguard Small-Cap ETF) which follows a straightforward market-cap approach, DFAC incorporates profitability screens that may help avoid the weakest companies in the small-cap universe. While SLY (SPDR S&P 600 Small Cap ETF) focuses exclusively on small-caps, DFAC's inclusion of mid-caps provides slightly larger company exposure, which may appeal to investors seeking small-cap characteristics with somewhat lower volatility.
Issuer Overview
Dimensional Fund Advisors (DFA) is a globally recognized investment firm known for its evidence-based approach to investing. Founded in 1981, DFA integrates academic research with practical portfolio management, particularly in the areas of small-cap and value investing. The firm manages over $600 billion in assets and is respected for its disciplined, long-term investment philosophy. DFA's ETFs, including DFAC, bring the firm's institutional-quality strategies to individual investors at competitive costs.
Conclusion
DFAC offers investors an efficient way to access the potential return premium of U.S. small- and mid-cap stocks through a research-driven, systematic approach. The ETF combines Dimensional's academic insights with the cost and tax advantages of the ETF structure. While suitable as a core small-cap holding for long-term investors, DFAC's factor tilts mean it may perform differently than plain vanilla small-cap indexes at various points in the market cycle. Investors should be prepared for the higher volatility typical of small-cap investments and consider DFAC as part of a diversified portfolio.
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