Dimensional US Real Estate ETF

Dimensional US Real Estate ETF (DFAR) owns US real estate stocks, mostly REITs (real estate investment trusts, which own and rent out property). As of July 31, 2026, it held 123 of them, weighted by company size. It is actively managed and follows no index. Its 0.19% expense ratio is close to the 0.20% average of similar funds. That is well above Schwab US REIT ETF (0.07%) and iShares Core U.S. REIT ETF (0.08%).

• Over the year to Oct 27, 2026, DFAR returned +7.6%, 6th of 9 among similar funds.
• Its worst full calendar year was 2025 (+1.3%); its best was 2023 (+11.1%).
• The deepest fall in its price history was 21.3% (Feb 2, 2023 to Oct 25, 2023), recovered by Jul 12, 2024.

As of Jul 31, 2026, the fund held 123 securities; the ten largest made up 48.25% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $32.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.22%, +1.73%, +2.31%.

DFAR is an actively managed ETF, so it does not copy an index. Under normal conditions, Dimensional Fund Advisors puts at least 80% of net assets into US real estate companies. A company counts if it earns at least half its revenue or profits from real estate, holds at least half its assets in real estate, or is set up as a REIT. Most of the fund is in REITs. It can also own home builders and commercial property developers, but not partnerships. It buys companies of all sizes listed on US exchanges.

The starting point is market-cap weighting: bigger companies get bigger positions. Dimensional can then raise, cut or drop a position based on factors such as free float, price momentum, liquidity, size, relative price (a low share price compared with book value) and profitability. Trading is light. The prospectus reports portfolio turnover of 7%. As of July 31, 2026, the 10 largest holdings made up 48% of the fund. Welltower was the biggest at 8.0%.

The fund may use futures and options on futures to keep its stock exposure steady as money comes in and goes out. It may also lend its securities to earn extra income. As of July 31, 2026, it held no derivatives and 1.57% in cash. The prospectus measures its results against the Dow Jones U.S. Select REIT Index.

• DFAR charges 0.19% a year, versus an average of 0.2% for the similar funds below (6th of 9, cheapest first).
• Of that, 0.17% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $19 in the first year and $243 over 10 years (assuming a 5% annual return).

DFAR adds a concentrated slice of property owners that broad stock funds hold only lightly, so it fits as a complement to a core holding rather than as the core itself.

DFAR gives focused exposure to landlords of senior housing, warehouses, data centers, malls, cell towers and self-storage. As of October 27, 2026, its trailing 12-month yield was 3.47%, paid quarterly. The SEC's standard example puts its cost at $19 in the first year and $243 over 10 years on $10,000.

Its track record is short. The fund launched in February 2022, and its price history starts in October 2022. That means it has no record through 2008, 2020 or the 2022 bear market. Its deepest drop was 21.3%, from February 2, 2023 to October 25, 2023. It was back to its old high by July 12, 2024. Its weakest calendar year was 2025, at 1.44%. Anyone drawing income during a slump could end up selling shares at low prices. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.