DFAS Profile
The Dimensional U.S. Small Cap ETF is an exchange-traded fund that adopts a market capitalization-weighted strategy to invest in a broad and diversified array of small-cap U.S. companies. The fund’s investment approach focuses on capturing the performance of a wide spectrum of small-cap stocks, reflecting the inherent potential for growth within this segment of the equity market. It aims to provide investors with exposure to a comprehensive selection of smaller companies, which often possess the potential for significant capital appreciation compared to larger, more established firms.
Under its non-fundamental policy, the fund commits to investing at least 80% of its net assets in the securities of small-cap U.S. companies. This mandate ensures that the ETF maintains a focused portfolio on companies that fall within the small-cap category, typically characterized by lower market capitalization relative to mid- and large-cap peers. By concentrating on small-cap stocks, the fund seeks to leverage the growth opportunities and market inefficiencies that are often present in this segment.
To manage its exposure to equity markets and adapt to varying market conditions, the fund may utilize futures contracts and options on futures contracts related to U.S. equity securities and indices. These derivatives are employed strategically to adjust the fund's equity market exposure in response to actual or anticipated changes in cash flows. This flexible approach allows the fund to effectively manage liquidity and align its investment strategy with current and expected market conditions.
The Dimensional U.S. Small Cap ETF is designed for investors seeking to capitalize on the growth potential of small-cap stocks while benefiting from the liquidity and diversification of an ETF structure. By maintaining a focus on small-cap U.S. companies and employing advanced tools to manage market exposure, the fund aims to deliver robust performance aligned with its investment objective. The use of derivatives enhances its ability to navigate market fluctuations and optimize returns for its investors.
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