Art by Jackson Epstein
Dimensional Announces Plans to Offer Four Sustainability ETFs
Dimensional Fund Advisors has continued expanding its exchange-traded funds suite by filing a preliminary registration statement with the Securities and Exchange Commission for four new sustainability-focused ETFs. The new funds are designed to pursue lower emissions exposure within portfolios that invest in U.S., developed international and emerging market equities, as well as global fixed-income markets.
The ETFs included in the filing are:
• Dimensional U.S. Sustainability Core 1 ETF
• Dimensional International Sustainability Core 1 ETF
• Dimensional Emerging Markets Sustainability Core 1 ETF
• Dimensional Global Sustainability Fixed-Income ETF
Dimensional’s sustainability strategies, the first of which launched in 2008, offer a patented approach to applying environmental and other sustainability criteria within a robust investment framework. Drawing upon the firm’s work with leading scientists and its experience integrating research and data within investment processes, Dimensional’s new strategies are designed to target measurable sustainability goals while seeking broad diversification, efficient cost management and higher expected returns.
When listed, the four new funds will join a growing lineup of Dimensional ETFs, which currently total 20 funds with approximately $48 billion in assets under management. Dimensional goes beyond indexing by using a flexible approach to systematically pursue higher expected returns in broadly diversified, low-cost investment solutions across asset classes and vehicle type. For equities, drivers of higher expected returns include size, relative price and profitability. For fixed income, term and credit premiums largely drive relative performance.
More Recordkeepers Join LeafHouse–iJoin Managed Account Program
LeafHouse Financial and LDI-MAP (d.b.a. iJoin) have announced partnerships with more than 12 recordkeepers to deliver the LeafHouse-iJoin managed account program. This solution combines the power of LeafHouse’s FlexFiduciary and reallocateIT portfolio management technologies with iJoin’s goal-based, personalized participant experience. Technology-driven efficiency makes it possible to deliver a long-sought personalized managed account program with 3(38) investment manager fiduciary coverage for as little as six basis points, not including investment expense.
The program addresses key employer and adviser requirements while helping individual employees be more successful. LeafHouse’s FlexFiduciary service helps employers meet their obligations while reducing cost, oversight, effort and risk, and helps advisers through its investment methodology, which works with a plan’s existing investment lineup.
The firms say the LeafHouse-iJoin MAP delivers a highly personalized approach to investment management at a cost that may be lower than that of a blended target-date fund when including the expense of the underlying investments.
“While target-date funds have been and continue to be a solution that simplifies investing for many, we believe they are not tailored to the unique needs of the individual,” the firms say. “iJoin, LeafHouse and forward-leaning recordkeepers are responding by accelerating development of innovative digital solutions, especially in the default investment space.”