Dimensional preps low-carbon ETFs

Dimensional preps low-carbon ETFs
The four exchange-traded funds aim for lower emissions exposure than comparable products, the fund manager said.
APR 13, 2022

Dimensional Fund Advisors is preparing a line of four sustainability-themed ETFs to add to its product suite.

On April 7, the firm filed with Securities and Exchange Commission for the ETFs, which could launch as soon as 75 days afterward. Those products include the Dimensional US Sustainability Core 1, International Sustainability Core 1, Emerging Markets Sustainability Core 1 and Global Sustainability Fixed Income ETFs.

A theme across the ETFs is lower emissions exposure than in comparable products, the company said in an announcement that accompanied the SEC registration. The ETFs “are designed to target measurable sustainability goals while seeking broad diversification, efficient cost management and higher expected returns,” the company said.

“Our teams have conducted extensive research into ESG considerations and developed a measurable approach to systematically integrating sustainability data into our portfolios,” Dimensional co-CEO and chief investment officer Gerard O’Reilly said in the announcement. “Our approach applies what we believe is the best available data to help investors incorporate their sustainability values in portfolios without sacrificing sound investment principles.”   

Total fees for the ETFs range from 18 basis points to 41 bps, according to the initial prospectus filed with the SEC.

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