The Dimensional Funds Emerging Markets Value ETF (DFEV) issuer adopts an integrated investment approach to achieve its investment objective. This approach encompasses research, portfolio design, management, and trading functions. The portfolio design prioritizes long-term drivers of expected returns identified through extensive research, ensuring broad diversification across companies, sectors, and countries to mitigate risks. DFEV focuses on acquiring emerging market equity securities considered value stocks at the time of purchase, potentially including frontier markets authorized by its Investment Committee. Emphasizing criteria like low relative price and high profitability, the advisor may overweight certain stocks, such as smaller capitalization or more profitable ones, compared to their representation in the value segments of the Approved Markets. While maintaining a non-fundamental policy to invest primarily in Approved Markets securities, DFEV retains flexibility to adjust exposure to individual companies based on short-term considerations like price momentum or investment characteristics. To manage trading costs efficiently, the fund employs a flexible trading approach, leveraging opportunities in market liquidity while minimizing turnover and explicit transaction costs. Additionally, DFEV may utilize various instruments such as depositary receipts, equity swap agreements, futures contracts, and options to enhance or reduce market exposure, including foreign currency exchange transactions due to investments in foreign currencies. Furthermore, the fund may engage in securities lending to generate additional income. As an actively managed exchange-traded fund, DFEV does not seek to replicate the performance of a specific index, potentially leading to a higher degree of portfolio turnover compared to index funds.
The Dimensional Funds Emerging Markets Value ETF (DFEV) offers investors the potential for dividend income through its investment strategy focused on acquiring emerging market equity securities deemed value stocks at the time of purchase. While the primary objective of DFEV is to achieve long-term capital appreciation, the portfolio's emphasis on value stocks often includes companies with a history of distributing dividends. By investing in these dividend-paying stocks within emerging markets, DFEV aims to provide investors with a source of income alongside the potential for capital appreciation. Additionally, as an actively managed exchange-traded fund, DFEV's portfolio management team may strategically select dividend-yielding securities based on their assessment of market conditions and individual company prospects, further enhancing the potential for dividend income generation.
As an actively managed exchange-traded fund, the Dimensional Funds Emerging Markets Value ETF (DFEV) does not seek to replicate the performance of a specific index. Instead, DFEV aims to outperform its benchmark by strategically selecting emerging market equity securities that are deemed value stocks at the time of purchase. While the fund does not track a predetermined index, it employs a meticulous investment approach that integrates research, portfolio design, management, and trading functions. By emphasizing long-term drivers of expected returns identified through comprehensive research, while balancing risk through diversification across companies, sectors, and countries, DFEV aims to deliver returns that exceed those of traditional passive index-tracking funds. This active approach allows DFEV to adapt to changing market conditions and capitalize on investment opportunities that may not be reflected in static index allocations, potentially leading to superior long-term performance for investors.
The Dimensional Funds Emerging Markets Value ETF (DFEV) exhibits a unique correlation profile stemming from its active management approach and focus on value stocks within emerging markets. While DFEV does not track a specific index, its investment strategy aims to provide exposure to emerging market equity securities that are deemed value stocks at the time of purchase. As such, DFEV's correlation with traditional broad market indices may vary over time, reflecting the fund's distinct portfolio composition and dynamic allocation decisions. By integrating rigorous research, portfolio design, management, and trading functions, DFEV seeks to achieve long-term capital appreciation while managing risk through broad diversification. Consequently, the correlation of DFEV with traditional market benchmarks may differ, providing investors with the potential for diversification benefits within their investment portfolios.
The Dimensional Funds Emerging Markets Value ETF (DFEV) adopts a sector-agnostic approach, aiming to achieve its investment objective by emphasizing value stocks across various sectors within emerging markets. While the fund does not specifically target or overweight particular sectors, its investment strategy focuses on identifying value opportunities across diverse industries. Through comprehensive research, portfolio design, management, and trading functions, DFEV seeks to capitalize on long-term drivers of expected returns while mitigating risk through broad diversification. Consequently, DFEV's sector exposure may vary over time based on market conditions and the relative attractiveness of value stocks within different sectors. This sector-agnostic approach allows DFEV to adapt to changing market dynamics and capture value opportunities wherever they arise, potentially enhancing long-term returns for investors.
The Dimensional Funds Emerging Markets Value ETF (DFEV) offers investors exposure to emerging market equity securities that are considered value stocks at the time of purchase. With its active management approach, DFEV aims to strategically select securities from emerging market countries, including frontier markets, that demonstrate attractive valuations relative to their fundamentals. DFEV's investment strategy integrates rigorous research, portfolio design, management, and trading functions to identify and capitalize on long-term drivers of expected returns while managing risk through broad diversification. Additionally, DFEV may overweight certain stocks, such as smaller capitalization or more profitable ones, compared to their representation in the value segments of the Approved Markets. Through its flexible trading approach and utilization of various investment instruments, including depositary receipts, equity swap agreements, futures contracts, and options, DFEV seeks to enhance or reduce market exposure based on actual or expected market conditions. As a result, DFEV provides investors with the opportunity to gain exposure to a diversified portfolio of emerging market value stocks, potentially capturing long-term capital appreciation while managing risk effectively.
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