David Booth’s dimensional cuts fee on 50 funds

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(Bloomberg) – Dimensional Fund Advisors appear determined to build on their recent new asset momentum: The quantification pioneer just announced fee cuts across a wide range of mutual funds and ETFs.

The $ 653 billion asset manager is lower costs across 47 mutual funds and three exchange-traded funds, which equates to a 13% reduction based on asset weighting, according to a press release. The cuts cover equity and fixed income funds and will come into effect on February 22.

This is the latest bold move from David Booth’s Dimensional, poised to become one of America’s 10 largest ETF issuers after just launch its first fund in November 2020. The firm has converted nearly $ 40 billion in mutual fund assets in ETFs this year, becoming one of the first managers to do so. The fees further reduce Dimensional’s push into the $ 7 trillion ETF arena, while trying to stem exits from the firm’s mutual fund lineup – Bloomberg Intelligence estimates around $ 12 billion dollars have been withdrawn so far in 2021.

“The flows show that money is coming out of mutual funds and into ETFs and they are aggressive in trying to stem the outflow and attract new capital,” said James Seyffart, analyst at Bloomberg Intelligence. “Other inherited managers with no strategy for the ETF ecosystem and who aren’t cutting fees are basically sticking their heads in the sand, as far as I’m concerned. “

Dimensional’s ETF stable currently includes 13 ETFs with around $ 44 billion in assets, according to data from Bloomberg Intelligence. This range should almost double – Dimensional deposited 10 more equity ETFs last month.


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