Dimensional preps low-carbon ETFs

The products cover a range of asset classes



Emile Hallez

Dimensional Fund Advisors is preparing a line of four sustainability-themed ETFs to add to its product suite.

The Austin, Texas-based firm on April 7 filed with Securities and Exchange Commission for the ETFs, which could launch as soon as 75 days afterward. Those products include the Dimensional US Sustainability Core 1, International Sustainability Core 1, Emerging Markets Sustainability Core 1 and Global Sustainability Fixed Income ETFs.

A theme across the ETFs is lower emissions exposure than in comparable products, the company said in an announcement that accompanied the SEC registration. The ETFs “are designed to target measurable sustainability goals while seeking broad diversification, efficient cost management and higher expected returns”, the company stated.

“Our teams have conducted extensive research into ESG considerations and developed a measurable approach to systematically integrating sustainability data into our portfolios,” Dimensional co-CEO and chief investment officer Gerard O’Reilly said in the company’s announcement. “Our approach applies what we believe is the best available data to help investors incorporate their sustainability values in portfolios without sacrificing sound investment principles.”   

Total fees for the ETFs range from 18 basis points to 41 bps, according to initial prospectus filed with the SEC.

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