Dimensional U.S. Targeted Value ETF

Dimensional U.S. Targeted Value ETF (DFAT) is an actively managed fund. As of July 31, 2026, it held 1,209 U.S. small and mid-sized companies that are cheap relative to their book value and earn relatively high profits. It also tries to keep taxable capital gains low. Its yearly cost of 0.28% is higher than index-based rivals such as Vanguard Small Cap Value ETF (0.07%).

• Over the year to Nov 2, 2026, DFAT returned +25.9%, 1st of 9 among similar funds.
• Its 5-year annualized return was +9.9%.
• Its worst full calendar year was 2022 (-6.2%); its best was 2023 (+20.9%).
• The deepest fall in its price history was 26.1% (Nov 25, 2024 to Apr 8, 2025), recovered by Dec 10, 2025.

As of Jul 31, 2026, the fund held 1,209 securities; the ten largest made up 6.78% of assets. It also reported 4.12% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $51.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.06%, +4.42%, +1.26%.

DFAT does not track an index. Its manager, Dimensional Fund Advisors, chooses from U.S. companies smaller than about the 500th-largest U.S. company. As of December 31, 2025, that meant a market value below about $15.1 billion. Within that group it favors value stocks, meaning shares priced low compared with book value (a company's assets minus its debts). It also favors companies with high profits compared with their book value or assets. Under normal conditions, at least 80% of net assets go into U.S. companies.

Holdings are weighted by market capitalization, which is share price times shares outstanding, so bigger companies get bigger slots. The fund may also lean further toward smaller, cheaper and more profitable stocks. The manager can add, trim or skip a stock based on shorter-term signals such as price momentum. The prospectus describes no fixed rebalancing calendar. Instead, the manager trades flexibly to hold down costs, and portfolio turnover was 9%.

Tax management shapes the trading. The manager tries to delay realizing gains and sells losing stocks to offset gains. It also tries to make any gains long-term, because those are taxed at lower rates. This matters most in a taxable account. The fund may use stock-index futures to stay invested as cash comes in or goes out. It also lends out its securities for extra income, which carries the risk that a borrower fails to return them.

• DFAT charges 0.28% a year, versus an average of 0.17% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.27% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $29 in the first year and $356 over 10 years (assuming a 5% annual return).

It holds smaller and mid-sized U.S. value stocks, which have often moved differently from the broad market: the fund returned 8.62% in 2025, while the Russell 3000 Index returned 17.15%.

DFAT owns 1,209 smaller and mid-sized U.S. value stocks, a part of the market that broad index funds hold only in small amounts. It lost 37.94% in the first quarter of 2020. Its worst calendar year in the prospectus record was 2018, when it fell 16.24%. In the 2022 market slump it fell 19.4% and got back to its old high in about four months. Its deepest drop as an ETF was 26.1%, from November 2024 to April 2025, and it took about eight months to recover. Selling shares during a drop like that locks in losses.

Income is modest. The yield was 1.33% as of October 30, 2026, paid quarterly. The 0.28% expense ratio (the yearly fee) is above the 0.17% average for similar funds. The SEC's standard example puts costs at $356 over 10 years on $10,000. The fund tries to limit taxable gains, which helps most outside IRAs. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

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