Dimensional Fund Advisors plans to launch its first exchange-traded funds (ETFs) in Europe by the end of 2025, subject to regulatory approval.
The asset manager, which is the largest active ETF issuer in the US, has filed to list two UCITS ETFs: a developed markets core all cap fund and a developed markets small and mid-cap value fund.
Both will be available in London (USD and GBP) and Frankfurt (EUR).
The ETFs will sit alongside Dimensional’s existing UCITS funds and separate accounts in Europe.
They will employ the same systematic, evidence-based investment approach used across its global strategies, which aim to outperform benchmarks while maintaining diversification and low costs.
Dimensional manages $853bn in assets worldwide, including more than $200bn in ETFs across 40 funds in the US and Australia.
Co-CEO John Romiza said: “ETFs are growing in popularity around the world given their compatibility with financial technology and ease of access.
“A growing number of financial professionals in Europe want the choice to use Dimensional ETFs in addition to UCITS funds and separate accounts.”
Fellow co-CEO Nathan Lacaze added: “We start with the market, then aim to beat it by systematically targeting securities with higher expected returns.
“Because we’re not constrained by minimising tracking error, we can focus daily on increasing expected returns for investors.”