Dimensional Fund Advisors LP’s latest mutual fund to ETF conversion is set to close Monday and bring the amount of converted assets in 2022 to nearly $10 billion.
The Tax-Managed US Marketwide Value Portfolio II ceased trading on Friday ahead of its scheduled debut as the Dimensional US Marketwide Value ETF (DFUV) on the NYSE Arca. Its 0.23% expense ratio is not changing as part of the conversion.
Dimensional announced the conversion in a regulatory filing in late March.
DFUV will continue to target U.S.-listed value stocks, while selling stocks with capital losses and maximizing long-term gains in a bid to minimize shareholders’ taxable net capital gains.
As a mutual fund, DFUV has outperformed the benchmark Russell 3000 Value Index six times between 2012 and 2021. It produced a 25.91% return in 2021 compared with 25.37% from its benchmark.
The $7.8 billion conversion will bring the amount of mutual fund assets converted in 2022 to approximately $9.84 billion.
That figure will keep rising in the coming weeks as JPMorgan Asset Management Inc. converts its $1.2 billion JPMorgan Realty Income Fund and the $5.4 billion JPMorgan International Research Enhanced Equity Fund in late May and early June.