Dimensional Inflation-Protected Securities ETF

Dimensional Inflation-Protected Securities ETF (DFIP) is an actively managed fund that holds U.S. Treasury Inflation-Protected Securities (TIPS). TIPS are government bonds whose principal rises and falls with consumer prices. The fund keeps its interest-rate sensitivity close to the Bloomberg U.S. TIPS Index and mostly buys bonds maturing in five to 20 years. Its 0.11% expense ratio matches the average of similar funds. Short-term TIPS funds such as VTIP cost less and react less to rate changes.

• Over the year to Oct 27, 2026, DFIP returned -1.1%, 7th of 8 among similar funds.
• Its worst full calendar year was 2022 (-12.4%); its best was 2025 (+7.5%).
• The deepest fall in its price history was 14.9% (Mar 8, 2022 to Nov 3, 2022), recovered by Oct 21, 2025.

As of Jul 31, 2026, the fund held 20 securities; the ten largest made up 81.65% of assets.

The bonds mature in 6.9 years on average (weighted by size), with an average coupon of 0.91%.

• Over the three months to Jul 31, 2026, investors added a net $77.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.12%, -0.51%, -0.71%.

DFIP is actively managed, so Dimensional does not copy an index. At least 80% of net assets normally go into inflation-protected bonds from the US government, mainly Treasury Inflation-Protected Securities (TIPS). A TIPS bond's principal rises and falls with the Consumer Price Index for Urban Consumers (CPI-U). Each semi-annual interest payment is a fixed rate applied to that adjusted principal, and at maturity the Treasury repays the greater of the adjusted principal or original face value.

Managers generally buy TIPS maturing in five to 20 years and target an average duration (how sharply prices react to rate changes) similar to that of the Bloomberg U.S. TIPS Index, about 6.5 years as of December 31, 2025. They do not shift maturities to bet on rates. The fund may use futures and options on futures to hedge rate risk or manage cash flows, but held none as of July 31, 2026.

The prospectus sets no weighting formula or rebalancing schedule. As of July 31, 2026, the fund held 20 Treasury issues averaging 6.9 years to maturity; the 10 largest made up about 82% of assets. Trading is light: annual turnover was 9%. Inflation increases to principal can count as taxable income before that cash arrives at maturity, so payouts may exceed the cash the fund collects.

• DFIP charges 0.11% a year, versus an average of 0.11% for the similar funds below (4th of 8, cheapest first).
• Of that, 0.09% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $11 in the first year and $141 over 10 years (assuming a 5% annual return).

Its holdings are almost all U.S. Treasury TIPS, whose principal adjusts with consumer prices, so it targets inflation risk rather than growth.

DFIP could help protect the spending power of a portfolio's bond holdings, but rising interest rates can still push its price down. The fund launched in November 2021, so it has no record from 2008 or 2020. In 2022, its worst calendar year, it lost 12.34%. Its deepest drop, 14.9% from March to November 2022, wasn't fully recovered until October 2025, about three years later. An investor who had to sell shares in late 2022 to cover spending would have locked in much of that loss.

The trailing yield was 5.3% as of October 27, 2026, paid quarterly. TIPS income moves with inflation, though, so payments can be uneven. In the SEC's standard $10,000 example, the 0.11% expense ratio adds up to $141 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).