Dimensional Fund Advisors is moving to tap the booming world of sustainable investments in its next ETF expansion.
The company is planning to launch four new sustainability-focused exchange-traded funds. If the preliminary registration statement is approved by the Securities and Exchange Commission, the funds will focus on investments in stocks and bonds worldwide that are associated with low emissions of greenhouse gases.
If listed, the funds will join Dimensional’s expanding suite of ETFs, which have about $48 billion in assets under management.
The market for environmental- and socially-minded funds has been a booming niche on Wall Street. Such ESG funds have pulled in $3.9 billion this year on the heels of a $36 billion inflow in 2021, according to data compiled by Bloomberg.
In March, the Austin, Texas-based Dimensional added four new ETFs that target non-U.S. equities across market caps, bringing the firm’s total fund count to 20. It is already among the top-10 issuers of ETFs after joining the $7 trillion industry in less than two years.
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