(DFAT) Dimensional U.S. Targeted - Ratings and Ratios

The Dimensional U.S. Targeted Value ETF (DFAT) is an actively managed exchange-traded fund that focuses on investing in U.S. companies, with a primary objective of capturing the value premium. Under normal market conditions, the fund allocates at least 80% of its net assets to U.S. company securities, targeting small-cap value stocks that exhibit characteristics such as lower market capitalization, higher dividend yield, and lower price-to-book ratios.

To achieve its investment objective, DFAT employs a flexible investment strategy that involves adjusting its equity market exposure in response to cash inflows or outflows. The fund achieves this by purchasing or selling futures contracts and options on futures contracts for U.S. equity securities and indices. This tactical approach enables the fund to manage its market risk and potentially capitalize on emerging opportunities or mitigate potential losses.

Based on the available technical data, the ETFs price is currently at $52.14, slightly below its 20-day simple moving average (SMA) of $52.38. The 50-day SMA is at $50.28, indicating a potential support level, while the 200-day SMA is at $54.29, suggesting a longer-term resistance level. The Average True Range (ATR) is 0.90, equivalent to 1.72% of the current price, indicating moderate volatility. Given the current price action and technical indicators, it is likely that the ETF will experience a short-term consolidation phase before potentially breaking out above its 200-day SMA.

Considering the funds fundamental data, with Assets Under Management (AUM) of $10.13 billion, DFAT has a significant presence in the market, which can contribute to liquidity and stability. Combining this with the technical analysis, a potential forecast is that DFAT will experience a gradual price appreciation over the next few quarters, driven by the funds underlying value investment strategy and the overall market conditions. If the ETF breaks out above its 200-day SMA, it may potentially target the 52-week high of $60.64. However, if it fails to break out, it may continue to consolidate around its current price level.