(DFIC) Dimensional International - Ratings and Ratios

The Dimensional International Core Equity2 ETF (BATS:DFIC) is designed to provide broad diversification by investing in a wide range of non-U.S. companies across developed markets, covering various company sizes. The funds strategy emphasizes smaller capitalization, lower relative price, and higher profitability companies, potentially offering a more nuanced approach to international equity investment.

From a portfolio construction perspective, the increased exposure to smaller capitalization companies may enhance potential long-term growth, as these firms often exhibit higher growth rates compared to their larger counterparts. The focus on higher profitability companies is also a key consideration, as it may lead to more robust earnings and, consequently, more stable returns. Additionally, the emphasis on lower relative price companies could indicate a value-oriented investment approach, potentially offering a margin of safety for investors.

To further evaluate the funds performance, key performance indicators (KPIs) such as tracking error, information ratio, and Sharpe ratio can be employed. The tracking error measures the funds deviation from its benchmark, while the information ratio assesses the risk-adjusted return relative to the benchmark. The Sharpe ratio, on the other hand, evaluates the funds excess return over the risk-free rate, relative to its volatility. By analyzing these KPIs, investors can gain a more comprehensive understanding of the funds risk-return profile and make more informed investment decisions.

Furthermore, considering the funds AUM of $9.68 billion, it is likely to have a relatively stable and liquid market presence, which can be beneficial for investors seeking to enter or exit positions. The funds investment universe and diversification strategy can also help mitigate potential risks associated with individual stocks or sectors, providing a more balanced exposure to international equities.