(DFAU) Dimensional US Core Equity - Ratings and Ratios

The Dimensional US Core Equity Market ETF (DFAU) is designed to provide broad exposure to the US equity market, with a tilt towards smaller capitalization, undervalued, and profitable companies. This approach is based on the premise that these characteristics are associated with higher expected returns over the long term. By investing in companies of all sizes, the fund aims to capture the overall performance of the US stock market while emphasizing factors that have historically driven returns.

The funds investment strategy is centered around a non-fundamental policy of allocating at least 80% of its net assets to equity securities of US companies under normal circumstances. The Advisor has the flexibility to adjust the funds exposure to individual companies based on shorter-term factors such as price momentum, short-term reversals, and investment characteristics. This allows the fund to potentially capitalize on market inefficiencies and optimize returns.

From a technical analysis perspective, the current price of DFAU is $41.12, indicating a positive trend as it is above its 20-day Simple Moving Average (SMA) of $40.40 and significantly above its 50-day SMA of $38.50. The 200-day SMA stands at $39.76, further supporting the notion of an upward trend. The Average True Range (ATR) is 0.52, or 1.27%, suggesting moderate volatility. Given these technical indicators, it is likely that DFAU will continue to trend upwards, potentially reaching its 52-week high of $42.21 in the near term.

Fundamentally, the funds Assets Under Management (AUM) stand at $8.03 billion, indicating a substantial investor base and liquidity. Combining this with the technical analysis, a forecast for DFAU could be made. Assuming the current trend continues and the fund maintains its exposure to smaller capitalization and higher profitability companies, it is plausible that DFAU could see its price appreciate further. A potential target could be in the range of $43-$45, representing a 5-10% increase from current levels, driven by a combination of its factor tilts and overall market performance.