Dimensional International Core Equity 2 ETF

Dimensional International Core Equity 2 ETF (DFIC) is an actively managed fund. As of July 31, 2026, it held 4,133 stocks of companies in developed countries outside the US, led by Japan, Canada and the UK. It does not track an index. Instead, it deliberately gives extra weight to smaller, lower-priced and more profitable companies. That approach costs 0.22% a year, more than broad index funds such as Vanguard FTSE Developed Markets ETF (VEA) at 0.03%.

• Over the year to Nov 2, 2026, DFIC returned +17.4%, 2nd of 9 among similar funds.
• Its worst full calendar year was 2024 (+4.1%); its best was 2025 (+37.0%).
• The deepest fall in its price history was 24.4% (Mar 29, 2022 to Sep 27, 2022), recovered by Jul 13, 2023.

As of Jul 31, 2026, the fund held 4,133 securities; the ten largest made up 6.88% of assets, and 2.87% sat in cash and money-market holdings.

• Over the three months to Jul 31, 2026, investors added a net $890.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.74%, -1.87%, +2.41%.

DFIC follows no index. Dimensional starts with a pool of companies in developed markets outside the US that its Investment Committee has approved. Each company in the pool counts in proportion to its market capitalization, which is its total stock market value. The fund buys companies of all sizes. It gives meaningfully more weight to three kinds of company: smaller ones, value stocks (cheap relative to book value, the accounting worth of a company) and highly profitable ones. It gives less weight to large, expensive or less profitable firms. As of July 31, 2026, the 10 largest positions made up just 6.88% of the fund. The largest were ASML at about 1.0%, Shell at about 1.0% and Novartis at 0.8%. Japan was 23.5% of assets, Canada 12.2% and the UK 11.0%.

There is no fixed rebalancing date. The managers adjust holdings as they go and may also weigh short-term signals such as price momentum. They trade patiently to keep costs down, and portfolio turnover was 6%. At least 80% of net assets must be in stocks.

The fund may also hold depositary receipts, which are certificates for foreign shares that trade on another exchange, and it may use equity swaps. It uses futures to manage cash coming in and out, and currency forwards to settle trades. It lends securities to earn extra income. It does not use leverage, so currency swings flow straight through to returns.

• DFIC charges 0.22% a year, versus an average of 0.13% for the similar funds below (7th of 9, cheapest first).
• Of that, 0.2% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $23 in the first year and $280 over 10 years (assuming a 5% annual return).

With 4,133 stocks across developed markets outside the US, DFIC could serve as the main international stock holding in a broader portfolio.

DFIC could add broad international stock exposure that does not depend on US companies. Its record is short. It launched on March 23, 2022, so it has no history in the 2008 or 2020 crashes, and it missed the start of the 2022 bear market. Its deepest drop was 24.4%, from March to September 2022. It got back to its earlier peak on July 13, 2023, about 9.5 months after the low. Its weakest calendar year, 2024, was still a 4.22% gain, but it lost 7.34% in that year's last quarter. Someone who had to sell during a slump like 2022's would have locked in losses. The yield was 2.53% as of October 29, 2026, paid quarterly. The 0.22% expense ratio is above the 0.13% average of similar funds. 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.