Avantis or DFA ETFs

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quallkidd
Posts: 8
Joined: Fri Mar 29, 2019 2:58 pm

Avantis or DFA ETFs

Post by quallkidd »

Hello Group, I'm wanting to buy a Total Market US & International ETF that tilts to small & value in a taxable account. I see that Dimensional has some new ETFs (DFAU & DFAI) and they are in competition with Avantis ETFs (AVUS & AVDE). It's really hard to find specific info on these ETFs, I suppose if I was an advisor I'd have access to all sorts of information but I'm not. Would any fellow Bogleheads help me out on these ETFs and provide some feedback & some food for thought?

Also, Fidelity allows purchase of a specific dollar amount in addition to purchasing whole shares. Is there any disadvantage to buying in specific dollars & getting fractional shares instead of whole shares, I'm thinking that maybe when it comes time to sell that having multiple lots in fractional shares might be a problem but maybe not, any feedback is much appreciated!
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Vegomatic
Posts: 385
Joined: Tue Feb 27, 2007 10:16 pm

Re: Avantis or DFA ETFs

Post by Vegomatic »

ETF.com has info at links below. Note inclusion of [Fund Home Page] link.

Also included a sample link to DFAU info, for example, at Schwab. Change symbol to see other ETFs. The [ETF Report Card] - towards the top - is a nice pdf with info.

Also below are examples of 'Classic' Morningstar, ETFRC, and Financial Times links. Again, change symbols for other ETFs.

DFA @ ETF.com
https://www.etf.com/DFAU
https://www.etf.com/DFAI

Avantis @ ETF.com
https://www.etf.com/AVUS
https://www.etf.com/AVDE

Schwab ETF Profile Example [DFAU]
https://www.schwab.com/public/schwab/in ... bol%3dDFAU

Morningstar Example [DFAU]
http://quotes.morningstar.com/chart/fun ... ion?t=DFAU

ETFRC (ETF Research Center) Example [AVUS]
https://www.etfrc.com/avus

Financial Times ETF Tearsheet [AVUS]
https://markets.ft.com/data/etfs/tearsh ... US:PCQ:USD
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woof755
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Joined: Sun Aug 05, 2007 2:03 pm
Location: Honolulu

Re: Avantis or DFA ETFs

Post by woof755 »

Does anyone know the reason DFA opened DFAU?
DFAU and DFAC are both US large blend ETFs. From a few minutes of investigating on M*, it looks like the older DFAC is a little more value-y and DFAU is larger.
In their largest holdings, one doesn't hold Tesla, so there is a little difference in the decision making.

What about this small difference made it worth creating an entirely new ETF?
"By singing in harmony from the same page of the same investing hymnal, the Diehards drown out market noise." | | --Jason Zweig, quoted in The Bogleheads' Guide to Investing
DosCommas
Posts: 79
Joined: Sun Jan 27, 2019 6:11 pm

Re: Avantis or DFA ETFs

Post by DosCommas »

DFA converted 2 of their "Core 2" tax managed funds into ETFs recently. These "core" funds are designed to be main portfolio holdings for a mild-to-moderate small/value tilted portfolio (I believe approx 20% tilt, but someone else might have more details).

DFAC is the fund formerly known as DFTCX (DFA T.A. U.S. Core Equity 2) which is a total US market fund (excluding REITs)

Additionally they recently converted their ex-US core tax managed fund DFTWX (DFA TA World ex US Core 2 Equity Portfolio) to an ETF. It is now listed as DFAX.
stan1
Posts: 14246
Joined: Mon Oct 08, 2007 4:35 pm

Re: Avantis or DFA ETFs

Post by stan1 »

DFA is converting their tax managed funds to ETFs because advisors and clients are tired of capital gains distributions and want the inherent tax preferences that come with ETFs (at least for now). They are 20 years late and I'd guess they only did it because of the billions of dollars that have flowed into Avantis since they entered the market. If you look at the Avantis corporate page you'll see a large number of "relationship managers" highlighted whose job presumably is to convince RIAs, family offices, institutional investors, and others to use Avantis ETFs instead of DFA funds.
DosCommas
Posts: 79
Joined: Sun Jan 27, 2019 6:11 pm

Re: Avantis or DFA ETFs

Post by DosCommas »

Also worth mentioning the other (and first DFA ETF) DFAU is also a “Core” total US market fund but it has much less of a small/value tilt to it compared to DFAC and fewer assets under management. If you download the fact sheets for these 2 funds you will see the price to book for DFAC is a bit lower (and also the strategy states it is tax managed).

DFAU seems to be more of the DFA Core 1 portfolio and was their first foray into the ETF space (not a conversion of a preexisting mutual fund).
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