Quant-Giant Dimensional Is Sharply Targeting $7.2T ETF Industry, Launches Four New Bond Funds

Quant-investing giant Dimensional Fund Advisors is aggressively increasing its entrance into the $7.2 trillion U.S. ETF sector, according to a report by Bloomberg on Tuesday.

The Austin, Texas-based fund will unveil its first four fixed-income funds on Tuesday. And the recent filing with the SEC indicated it is planning 10 more stock ETFs. That move will expand the firm’s lineup to 23 ETFs.

The huge expansion underscores Dimensional’s commitment to its ETF unit after enjoying significant success with its first few funds.

From being a late entrant into the sector in November 2020, today, Dimensional is on the verge of becoming one of the top 10 issuers based on assets with $44 billion.

Dimensional manages nearly $653 billion in total, including $120 billion in fixed income.

The four funds being unveiled on Tuesday are actively managed and usually carry fees of around 0.11% and 0.19%.