This $10.2 Billion ETF Tries to Beat the Market Through Size and Profitability Tilts (But VTI Costs Less)

"DFAU tracks the broad US equity market with exposure to over 3,000 companies, similar to Vanguard Total Stock Market ETF (NYSEARCA:VTI). The difference lies in execution. While VTI follows strict market-cap weighting, DFAU applies Dimensional Fund Advisors' academic research to tilt toward smaller companies, lower relative prices, and higher profitability firms. These adjustments happen daily within a framework designed to maintain low tracking error."

"Since inception in November 2020, DFAU has returned 91% compared to the S&P 500's 85%. That 6.4 percentage point outperformance reflects the cumulative benefit of the fund's approach, though past results don't guarantee future outcomes. The fund charges 0.12% annually and maintains 4% portfolio turnover, making it highly tax-efficient for taxable accounts. Where It Fits Best DFAU works as a single-fund US equity core holding for investors who want market exposure with a tilt toward academic factors associated with higher long-term returns."

DFAU tracks the broad US equity market with exposure to over 3,000 companies while applying Dimensional Fund Advisors' academic research to tilt toward smaller companies, lower relative prices, and higher-profitability firms. The fund maintains low tracking error through daily adjustments. Since inception in November 2020, DFAU returned 91% versus the S&P 500's 85%, a 6.4 percentage-point advantage. The fund charges a 0.12% expense ratio and shows about 4% portfolio turnover, enhancing tax efficiency for taxable accounts. DFAU holds $10.2 billion in assets, allocates 31% to technology, pays growing quarterly dividends, and accepts potential tracking error from factor tilts.

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