The Dimensional Funds Emerging Markets High Profitability ETF (DEHP) is managed by employing an integrated investment approach, combining meticulous research, portfolio design, management, and trading functions. This strategy aims to identify and invest in large companies within emerging markets that exhibit high profitability relative to their peers in the same country or region at the time of acquisition. DEHP emphasizes long-term drivers of returns while ensuring risk mitigation through diversification across various companies, sectors, and countries. The portfolio management process not only focuses on these long-term drivers but also incorporates shorter-term factors and trading costs into consideration. DEHP's investment strategy targets companies with high earnings or profits concerning their book value or assets, potentially favoring smaller capitalization, lower relative price, and higher profitability stocks within approved markets. The fund's flexible trading approach aims to optimize market liquidity while managing turnover and transaction costs effectively. Under normal circumstances, DEHP invests at least 80% of its assets in emerging markets securities, including depositary receipts, China A-shares, variable interest entities, futures contracts, options on futures contracts, and foreign currency exchange transactions, reflecting its active management style and flexibility in seeking returns beyond index replication. Additionally, DEHP may engage in securities lending to generate supplementary income, showcasing its dynamic approach to enhancing shareholder value.
The DEHP Dividend strategy aims to provide investors with regular income through dividend distributions while maintaining exposure to high-profitability companies within emerging markets. Managed under the Dimensional Funds Emerging Markets High Profitability ETF, this dividend-focused approach aligns with the fund's broader investment objective of capitalizing on long-term drivers of returns while managing risk through diversification. By investing in large companies with robust profitability metrics relative to their peers, DEHP Dividend seeks to capture dividends from these companies, contributing to the fund's income generation. The strategy combines research-driven portfolio design with active management and trading functions to optimize dividend yield while effectively managing risk and transaction costs. DEHP Dividend may invest in various securities, including depositary receipts, China A-shares, variable interest entities, futures contracts, and options on futures contracts, providing flexibility to pursue dividend income across different emerging market segments. Additionally, the fund may engage in securities lending to enhance dividend yield and overall income for investors, reflecting its commitment to delivering consistent and reliable dividend distributions over time.
The DEHP Tracking strategy is designed to closely mirror the performance of a specific index within the emerging markets landscape while incorporating Dimensional Funds' distinctive investment philosophy. Operating under the Dimensional Funds Emerging Markets High Profitability ETF, this tracking approach aims to replicate the index's returns by investing in a diversified portfolio of securities that closely resemble the index's composition. Through meticulous research, portfolio design, and active management, DEHP Tracking seeks to minimize tracking error and effectively replicate the index's performance over time. The strategy emphasizes long-term drivers of returns identified through research while balancing risk through broad diversification across companies, sectors, and countries within emerging markets. DEHP Tracking may invest in a range of securities, including large companies with high profitability metrics relative to their peers, leveraging Dimensional Funds' expertise in identifying and capitalizing on market inefficiencies. By maintaining a high degree of correlation with the target index, this strategy aims to provide investors with an efficient and cost-effective means of gaining exposure to emerging markets while aligning with their investment objectives.
The DEHP Correlation strategy focuses on managing correlation risk within the emerging markets landscape while leveraging Dimensional Funds' robust investment framework. Under the Dimensional Funds Emerging Markets High Profitability ETF, this strategy aims to mitigate correlation risk by investing in a diversified portfolio of securities that exhibit low correlations with each other and with broader market indices. Through rigorous research, portfolio design, and active management, DEHP Correlation seeks to construct a portfolio that maintains low correlations with major market indices while capturing the long-term drivers of returns within emerging markets. By emphasizing securities with unique risk and return profiles, the strategy aims to enhance portfolio diversification and reduce the impact of systematic market movements. DEHP Correlation may invest in large companies with high profitability metrics relative to their peers, leveraging Dimensional Funds' expertise in identifying securities with low correlations to optimize risk-adjusted returns. By systematically managing correlation risk, this strategy offers investors a disciplined approach to navigating the complexities of the emerging markets landscape while seeking to achieve their investment objectives.
The DEHP Sector strategy is crafted to offer investors exposure to specific sectors within the emerging markets, operating within the Dimensional Funds Emerging Markets High Profitability ETF framework. This strategy aims to capitalize on the potential for sector-specific outperformance while managing associated risks through meticulous research, portfolio design, and active management. DEHP Sector may invest in sectors exhibiting strong fundamentals and growth prospects, seeking to capture the long-term drivers of returns within these segments. Through comprehensive sector analysis, the strategy identifies opportunities for sector rotation or overweighting based on market conditions and sector-specific factors. DEHP Sector may invest in large companies within selected sectors that demonstrate high profitability metrics relative to their peers, leveraging Dimensional Funds' expertise in identifying and capitalizing on sectoral inefficiencies. By providing targeted exposure to specific sectors within the emerging markets, this strategy enables investors to align their portfolios with sectoral trends and dynamics while aiming to enhance returns and manage risk over the investment horizon.
The DEHP Exposure strategy is tailored to provide investors with targeted exposure to specific segments or themes within the emerging markets space, under the Dimensional Funds Emerging Markets High Profitability ETF. This strategy aims to capitalize on unique market opportunities by investing in securities that offer concentrated exposure to selected factors, sectors, or regions. Through comprehensive research, portfolio design, and active management, DEHP Exposure seeks to identify and exploit potential sources of outperformance within emerging markets while managing associated risks. The strategy may emphasize certain stocks, sectors, or regions based on their potential for delivering strong returns relative to the broader market. DEHP Exposure may invest in large companies with high profitability metrics relative to their peers, leveraging Dimensional Funds' expertise in identifying and capitalizing on market inefficiencies. By providing targeted exposure to specific segments of the emerging markets, this strategy offers investors a tailored approach to portfolio construction that aligns with their investment preferences and objectives, while aiming to enhance risk-adjusted returns over the long term.
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