Dimensional World ex U.S. Core Equity 2 ETF

Dimensional World ex U.S. Core Equity 2 ETF (DFAX) is an actively managed ETF. As of July 31, 2026, it held about 10,500 stocks from developed and emerging markets outside the U.S. It does not track an index. It leans toward smaller companies, cheaper "value" companies and more profitable ones, and it trades with taxes in mind. That approach costs 0.28% a year, against 0.04% to 0.07% for broad international index ETFs like VEU, VXUS and IXUS.

• Over the year to Oct 27, 2026, DFAX returned +16.0%, 3rd of 8 among similar funds.
• Its worst full calendar year was 2024 (+4.8%); its best was 2025 (+35.4%).
• The deepest fall in its price history was 26.1% (Feb 16, 2022 to Oct 12, 2022), recovered by Feb 21, 2024.

As of Jul 31, 2026, the fund held 10,547 securities; the ten largest made up 8.22% of assets, and 3.2% sat in cash and money-market holdings.

• Over the three months to Jul 31, 2026, investors added a net $394.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.96%, -1.92%, -0.13%.

DFAX does not follow an index. Dimensional Fund Advisors starts with all the non-U.S. companies in developed and emerging markets that its Investment Committee has approved, which may include frontier markets (less-developed emerging markets). That starting list is weighted by market value, so bigger companies count for more. The fund then gives extra weight to smaller companies, to value stocks (shares priced low compared with the company's book value, or net assets) and to highly profitable companies. Mostly it does this by holding less of large, expensive or less profitable companies. Under normal conditions, at least 80% of its net assets go into non-U.S. stocks.

The managers also adjust holdings for shorter-term signals, such as price momentum and how fast a company is growing its assets. They trade in ways meant to keep costs down. Turnover was 5%, according to the prospectus. The fund is also tax-managed. It sells losing positions to offset gains, delays realizing gains and favors long-term gains, which are taxed at lower rates.

A few mechanical details matter. Some holdings are depositary receipts (U.S.-listed versions of foreign shares), so Taiwan Semiconductor appears twice. The fund may own China A-shares and variable interest entities, which give exposure to some Chinese companies through contracts rather than direct ownership. It uses futures to stay invested as money moves in and out, uses currency contracts to settle trades and may lend out its securities. It does not use leverage.

• DFAX charges 0.28% a year, versus an average of 0.09% for the similar funds below (7th of 8, cheapest first).
• Of that, 0.25% 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 spreads money across about 10,500 non-U.S. companies in developed and emerging markets, so it can serve as the whole international stock portion of a portfolio.

DFAX could cover a portfolio's international stocks in a single fund. As of July 31, 2026, its largest country weights were Japan (15.7%), Taiwan (9.2%) and Canada (8.4%). Its prospectus figures go back to 2016, before the ETF launched in September 2021. They show real losses: down 16.87% in 2018, down 14.29% in 2022, and a 28.07% drop in the first quarter of 2020. The share price fell 26.1% between February 16 and October 12, 2022, and took until February 21, 2024 to recover. A retiree who had to sell during that stretch would have locked in losses. Income was modest: a 2.48% trailing yield as of October 27, 2026, paid quarterly. The 0.28% expense ratio adds up to $356 over 10 years on $10,000 in the SEC's standard example. 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.