Average Daily Volume
1.51M
Fund Overview
The Dimensional International Core Equity 2 ETF (DFAI) is a passively managed exchange-traded fund that seeks to track the performance of a diversified portfolio of non-U.S. developed market equities. The fund employs a systematic investment approach that emphasizes factors such as company size, relative price, and profitability. DFAI provides exposure to a broad range of companies across various sectors and countries outside the United States, with a focus on long-term capital appreciation. The fund is designed for investors seeking international diversification and potential returns from developed markets outside the U.S.
- 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
-
5 %
- Dividend Date
-
Why Invest in the DFAI ETF?
Potential Benefits
- Provides diversified exposure to developed international markets outside the U.S.
- Systematic investment approach incorporates multiple dimensions of expected returns.
- Lower expense ratio compared to many actively managed international funds.
- Offers potential for long-term capital appreciation through broad market exposure.
- Designed to capture the performance of profitable companies at reasonable valuations.
Potential Risks
- Subject to currency fluctuations as it invests in non-U.S. markets.
- International investments may be affected by political and economic risks in foreign countries.
- May underperform U.S. markets during periods of dollar strength.
- Concentration in developed markets means no exposure to potentially faster-growing emerging markets.
- Value-oriented approach may underperform during growth-led market rallies.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+5.1%
|
+5.5%
|
-7.5%
|
+5.4%
|
+1.9%
|
-0.2%
|
+2.1%
|
+2.3%
|
-3.4%
|
+0.5%
|
-
|
-
|
| 2025 |
+4.1%
|
+2.4%
|
+0.6%
|
+3.6%
|
+5.2%
|
+2.9%
|
-1.4%
|
+4.7%
|
+2.2%
|
+0.8%
|
+2.0%
|
+2.6%
|
| 2024 |
-0.7%
|
+2.6%
|
+3.7%
|
-3.1%
|
+4.9%
|
-2.1%
|
+3.2%
|
+3.1%
|
+1.0%
|
-5.1%
|
+0.5%
|
-3.0%
|
| 2023 |
+8.8%
|
-3.0%
|
+2.3%
|
+2.7%
|
-4.4%
|
+4.6%
|
+3.1%
|
-3.5%
|
-3.4%
|
-3.2%
|
+8.2%
|
+5.3%
|
| 2022 |
-2.9%
|
-2.5%
|
+0.8%
|
-6.4%
|
+2.2%
|
-9.1%
|
+5.1%
|
-5.8%
|
-9.2%
|
+5.9%
|
+12.2%
|
-1.8%
|
| 2021 |
-0.7%
|
+3.2%
|
+2.9%
|
+2.9%
|
+3.9%
|
-1.3%
|
+0.7%
|
+1.4%
|
-2.7%
|
+3.4%
|
-4.8%
|
+4.6%
|
| 2020 |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
+5.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
ASML
|
ASML HOLDING NV ADR |
1.0 % |
|
RY
|
ROYAL BANK OF CANADA |
0.8 % |
|
NVS
|
NOVARTIS AG ADR |
0.7 % |
|
TD
|
THE TORONTO-DOMINION BANK |
0.4 % |
|
SHOP
|
n/a |
0.4 % |
|
ENB
|
ENBRIDGE INC |
0.4 % |
|
BMO
|
BANK OF MONTREAL |
0.3 % |
|
CNQ
|
CANADIAN NATURAL RESOURCES LTD |
0.3 % |
|
SU
|
SUNCOR ENERGY INC |
0.3 % |
|
BHP
|
BHP GROUP LTD ADR |
0.3 % |
Top 10 holdings shown, out of 3 total holdings.
Related ETFs: DFAI vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
DFAI follows a systematic investment approach that seeks to capture dimensions of expected returns identified by academic research. The fund invests primarily in a broad universe of non-U.S. developed market equities, with portfolio construction emphasizing companies with smaller market capitalizations, lower relative prices, and higher profitability. The fund is passively managed but doesn't track a traditional market-cap weighted index. Instead, it uses Dimensional's proprietary portfolio construction methodology that aims to provide more efficient exposure to these return factors. The portfolio is rebalanced periodically to maintain target exposures.
Frequently Asked Questions
What markets does DFAI invest in?
DFAI invests in developed markets outside the United States, including countries in Europe, Asia Pacific, and other developed regions.
How does DFAI differ from traditional international index funds?
Unlike traditional market-cap weighted index funds, DFAI uses a systematic approach that emphasizes factors like company size, relative price, and profitability in its portfolio construction.
Does DFAI invest in emerging markets?
No, DFAI focuses exclusively on developed markets. Investors seeking emerging markets exposure would need to consider a separate emerging markets ETF.
How often is DFAI rebalanced?
While the exact rebalancing schedule isn't publicly disclosed, Dimensional typically rebalances its funds periodically to maintain target factor exposures and portfolio characteristics.
Is DFAI suitable for income-focused investors?
DFAI is primarily designed for capital appreciation rather than income generation, as international dividend yields may be lower than domestic dividend-focused funds.
Industry Overview
The DFAI ETF provides exposure to developed international equity markets, an important component of a globally diversified portfolio. Developed markets outside the U.S. represent a significant portion of global market capitalization and offer exposure to industries and companies not always available in domestic markets. The international developed market ETF space includes funds tracking broad benchmarks like the MSCI EAFE Index, as well as more specialized approaches like DFAI's systematic factor-based strategy. Investors use these funds to reduce home country bias and potentially benefit from different economic cycles across regions.
Alternative Comparison
Compared to broad international developed market ETFs like EFA or VEA that track market-cap weighted indices, DFAI offers a more targeted approach that emphasizes factors like value and profitability. While funds like IEFA and SCHF provide similar regional exposure, DFAI's systematic approach may lead to different sector and country allocations. FNDF, another factor-oriented international ETF, shares some similarities with DFAI but uses a different index provider and methodology. DFAI's expense ratio is competitive with other factor-based international ETFs, though slightly higher than plain vanilla index trackers.
Issuer Overview
Dimensional Fund Advisors is a globally recognized investment firm known for its evidence-based approach to investing. Founded in 1981, the firm integrates academic research with practical investing, offering a range of mutual funds and ETFs that emphasize factors like size, value, and profitability. Dimensional's systematic investment approach and focus on cost-efficiency have made it a popular choice among both institutional and individual investors seeking long-term, diversified exposure to global markets.
Conclusion
DFAI offers investors a cost-effective way to access developed international markets with a systematic approach that emphasizes factors associated with long-term returns. While it carries typical international investing risks like currency exposure and geopolitical factors, its diversified portfolio and evidence-based methodology make it an attractive option for investors seeking international equity exposure beyond simple market-cap weighting. As with any international investment, DFAI is best considered as part of a broader diversified portfolio strategy.
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