Texas-headquartered asset manager Dimensional Fund Advisors plans to expand its footprint in Europe with the launch of its first ETF, subject to approval.
The firm has filed to list two Ucits ETFs by the end of 2025 to complement its existing Ucits funds and separate account solutions in the region.
Both funds will invest in developed markets, with one providing core all-cap exposure and the other targeting small- and mid-cap value stocks. The ETFs are expected to be listed in London (US dollar & pound) and Frankfurt (euro).
The European ETFs will adopt the firm’s systematic investment approach, aiming to outperform benchmarks through broadly diversified, low-cost portfolios. They will be managed alongside Dimensional’s other strategies by its integrated teams across research, portfolio management and capital markets.
John Romiza, Co-CEO, Dimensional Fund Advisors Ltd., commented: “ETFs are growing in popularity around the world given their compatibility with financial technology and ease of access. And we have found that a growing number of financial professionals in Europe want the choice to use Dimensional ETFs in addition to existing UCITS funds and separate accounts.”
Nathan Lacaze, Co-CEO, Dimensional Fund Advisors Ltd., said: “At Dimensional, we believe markets do a good job at setting prices, and every basis point counts for investors. That’s why our philosophy is to start with the market, then aim to beat it through systematically targeting securities with higher expected returns. And because we are not constrained by a target of minimising tracking error, we have the flexibility to focus every day on increasing expected returns.”
