The DFEM issuer, which is the Dimensional Funds, employs a comprehensive investment strategy for its Emerging Markets Core 2 ETF. This strategy integrates various functions including research, portfolio design, management, and trading to achieve its investment objective. The portfolio's design emphasizes long-term drivers of expected returns identified through research while ensuring risk mitigation through broad diversification across companies, sectors, and countries. The fund focuses on purchasing a diverse range of equity securities associated with emerging markets, including frontier markets, authorized for investment by the Advisor Investment Committee. Emphasis is placed on smaller capitalization, lower relative price, and higher profitability companies, achieved by adjusting asset allocation accordingly. The fund's approach to assessing relative price and profitability may evolve over time. Additionally, the fund may adjust its exposure to individual companies based on short-term factors like price momentum and investment characteristics, all while managing trading costs. It may utilize various instruments such as depositary receipts, equity swap agreements, futures contracts, and options to gain exposure to approved markets. Moreover, the fund may engage in foreign currency exchange transactions and securities lending to enhance income. As an actively managed ETF, it does not aim to replicate a specific index's performance, potentially leading to a higher portfolio turnover compared to index funds.
DFEM Dividend, a product of Dimensional Funds, operates with a focus on providing investors with dividend-focused exposure within emerging markets. The fund strategically selects equity securities from emerging markets, including frontier markets, authorized for investment by the Advisor Investment Committee, with an emphasis on companies that offer attractive dividend yields. Leveraging an integrated investment approach that combines thorough research, portfolio design, management, and trading functions, DFEM Dividend aims to capture the long-term drivers of dividend income while balancing risk through diversification across sectors, company sizes, and countries. The fund's portfolio management processes dynamically adjust exposure to dividend-paying companies based on both long-term and shorter-term factors, aiming to optimize returns while managing trading costs. Additionally, DFEM Dividend may utilize various investment instruments such as depositary receipts and equity swap agreements to enhance its dividend-focused strategy within approved markets.
DFEM Tracking, an offering by Dimensional Funds, is tailored to provide investors with a precise and efficient tracking of a specific index within emerging markets. Leveraging a meticulous investment approach that integrates research, portfolio design, management, and trading functions, DFEM Tracking ensures close alignment with the targeted index's performance. The fund strategically selects equity securities from emerging markets, including frontier markets, authorized for investment by the Advisor Investment Committee, to closely mirror the composition and weighting of the chosen index. With a focus on minimizing tracking error and optimizing replication efficiency, DFEM Tracking employs sophisticated portfolio management techniques to manage various factors such as market movements and trading costs. By utilizing a combination of direct investment and derivatives, such as futures contracts and options, the fund seeks to replicate the returns of the designated index while managing risk through broad diversification across sectors, company sizes, and geographical regions. As an actively managed exchange-traded fund, DFEM Tracking continuously adapts its portfolio to maintain close alignment with the target index, ensuring investors experience minimal deviation from the index's performance over time.
DFEM Correlation, a product offered by Dimensional Funds, is meticulously designed to provide investors with exposure to emerging markets while managing correlation risk. The fund employs a sophisticated investment approach that integrates rigorous research, portfolio design, management, and trading functions to effectively address correlation dynamics within the portfolio. By strategically selecting equity securities from emerging markets, including frontier markets, authorized for investment by the Advisor Investment Committee, DFEM Correlation aims to minimize correlation with traditional asset classes such as developed markets and bonds, thus offering diversification benefits to investors. The fund's portfolio management processes dynamically adjust exposure to various emerging market securities, sectors, and regions to optimize correlation with targeted benchmarks. Additionally, DFEM Correlation may utilize advanced risk management techniques and derivatives to further mitigate correlation risk while maintaining a focus on capturing the long-term growth potential of emerging markets. Through its comprehensive approach, DFEM Correlation seeks to provide investors with a robust investment solution that balances risk and return in correlation-sensitive environments.
DFEM Sector, a product of Dimensional Funds, is tailored to offer investors targeted exposure to specific sectors within emerging markets. Through a meticulous investment approach that integrates thorough research, portfolio design, management, and trading functions, DFEM Sector aims to capture the growth potential of selected sectors while managing risk through diversification across industries, company sizes, and geographical regions. The fund strategically selects equity securities from emerging markets, including frontier markets, authorized for investment by the Advisor Investment Committee, with a focus on sectors poised for growth. By dynamically adjusting sector allocation based on market conditions and sector performance, DFEM Sector aims to capitalize on sector-specific opportunities while mitigating risks associated with individual sectors. Additionally, the fund may utilize derivatives and advanced risk management techniques to enhance sector exposure and manage volatility. Through its comprehensive approach, DFEM Sector seeks to provide investors with a targeted and efficient means of accessing the potential growth of emerging market sectors.
DFEM Exposure, a product of Dimensional Funds, is crafted to provide investors with broad and comprehensive exposure to emerging markets. With a meticulous investment strategy that integrates thorough research, portfolio design, management, and trading functions, DFEM Exposure aims to capture the diverse growth opportunities available across emerging market economies. The fund strategically selects equity securities from emerging markets, including frontier markets, authorized for investment by the Advisor Investment Committee, with a focus on maximizing exposure to the broad spectrum of companies, sectors, and regions within these markets. By dynamically adjusting allocations based on evolving market dynamics and opportunities, DFEM Exposure seeks to optimize returns while managing risk through diversification. Additionally, the fund may utilize various instruments such as derivatives and foreign currency transactions to enhance exposure and efficiently capture emerging market growth. Through its comprehensive approach, DFEM Exposure offers investors a robust and efficient means of accessing the potential growth of emerging markets.
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