What does it mean that both AVDE and DFIC are listed as Foreign Large Blend?

Both funds are categorised as Foreign Large Blend, meaning they invest in a mix of large-cap international companies with varying growth and value characteristics. This approach aims to capture broad exposure to developed non-US equity markets rather than focusing on a single style. Investors use these funds to diversify their portfolios geographically and style-wise, reducing reliance on domestic holdings while maintaining a balanced approach to market capitalisation and investment strategy.

How should investors interpret the expense ratio differences between these funds?

The expense ratio represents the annual cost of owning the fund. AVDE charges 0.23% while DFIC charges 0.22%. While the difference is only 0.01 percentage points, lower costs generally improve net returns over long periods. Beginners should understand that these fees are deducted from assets, not billed separately. Although AVDE is slightly more expensive, the cost difference is marginal and may be influenced by other factors such as portfolio construction methodology and trading costs inherent in systematic active strategies.

Why are sector weights and tracked indexes listed as not available?

Sector weights and tracked indexes are listed as not available because both AVDE and DFIC are systematically active funds rather than traditional index trackers. They do not replicate a specific benchmark index, so there is no fixed index to track. Additionally, detailed sector weightings are often not disclosed daily in the same way as ETFs tracking public indexes. This lack of transparency makes granular attribution analysis difficult, as the managers adjust holdings based on factor models rather than static index rules.

How do the dividend yields of AVDE and DFIC compare for income-focused investors?

AVDE offers a dividend yield of 2.74%, whereas DFIC has a yield of 2.34%. This means AVDE currently provides a slightly higher income stream relative to its share price. However, dividend yields fluctuate based on market conditions and company payouts. For beginners, it is crucial to distinguish between yield and total return. A higher yield does not guarantee better performance, as capital appreciation and dividend growth are equally important. These funds distribute income periodically, subject to tax implications.

What is the significance of the shared top holdings like ASML and SHEL?

Both funds share ASML, SHEL, BBVA, and BP in their top holdings, indicating a similar broad market approach to developed international equities. For example, ASML represents approximately 1.27% of AVDE and 1.03% of DFIC. This overlap suggests that despite active management, both funds hold significant positions in the largest global companies. Beginners should note that high overlap in top holdings often leads to correlated performance, meaning these funds may not significantly diversify risk against each other.

Why are the inception dates and net assets important for beginners?

AVDE launched in September 2019 with $19.1 billion in assets, while DFIC launched in March 2022 with $15.4 billion. Inception date matters because it indicates the length of available performance data. AVDE has a longer track record, providing more evidence of how its strategy performs over different market cycles. Larger net assets generally support better liquidity and lower bid-ask spreads, making trading easier for retail investors. However, size alone does not guarantee future returns.

How do the fund sizes influence liquidity for average investors?

AVDE manages $19.1 billion and DFIC manages $15.4 billion. Both are considered large funds, which typically ensures high trading volume and tight spreads. For average investors, this means it is easier to buy or sell shares at fair market prices without significantly moving the price. Smaller funds can suffer from liquidity issues during market stress, but these assets under management levels provide sufficient economies of scale. Beginners should still monitor the bid-ask spread when executing trades to minimise transaction costs.

What role do top holdings like BHP and TM play in AVDE's portfolio?

AVDE includes specific top holdings such as BHP at 0.57% and TM at 0.45%, which are not listed in DFIC's provided top holdings. These positions reflect AVDE's active tilts, potentially towards value or profitability factors. BHP represents industrial exposure, while TM offers insurance sector representation. Beginners should understand that active managers like Avantis may overweight or underweight certain sectors or stocks compared to a market-cap weighted index, aiming to generate alpha through systematic selection.

How does DFIC's holding concentration risk compare to AVDE?

DFIC maintains highly diversified top holdings, with no single position exceeding 1.03% of assets. In contrast, AVDE's largest holding, ASML, constitutes 1.27% of its portfolio. This indicates that DFIC currently exhibits slightly less single-stock concentration in its top positions. Lower concentration can reduce specific stock risk, but it may also limit upside if one holding performs exceptionally well. Beginners should consider that both funds maintain diversified portfolios, but the degree of concentration varies slightly due to their active management approaches.

How are dividends from these ETFs distributed to shareholders?

ETFs like AVDE and DFIC pass along dividends received from underlying companies to shareholders. These distributions are typically made quarterly. Investors can choose to receive cash payments or, if available through their brokerage, reinvest them to purchase additional shares. It is important to note that receiving a dividend does not increase total value; the share price adjusts downward by the distribution amount. For beginners, understanding the tax implications of these distributions in their specific jurisdiction is essential.

Can beginners use sector data to compare AVDE and DFIC effectively?

No, beginners cannot effectively use sector data to compare these funds because sector weights are listed as not available for both AVDE and DFIC. Since they are actively managed via systematic models rather than tracking a transparent index, their sector allocations are dynamic and not publicly disclosed in the standard format. To understand their risk profile, investors should focus on the stated objectives, factor tilts (such as size and value), and overall market category (Foreign Large Blend) rather than attempting granular sector analysis.

What are the implications of the short operating history for DFIC?

DFIC launched in March 2022, giving it a very short operating history compared to AVDE's 2019 inception. This limits the amount of long-term performance data available to evaluate how the fund handles different market cycles, such as recessions or high-inflation periods. Beginners should be cautious when relying on recent performance figures for funds with short track records. While the methodology may be robust, the practical application over multiple market environments has less evidence for DFIC than for its peer.

AVDE vs DFIC

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares Avantis International Equity ETF (AVDE) and Dimensional International Core Equity 2 ETF (DFIC). We review their expense ratios, top holdings, dividend yields, and index focus. Both track foreign large blend markets, but differences in methodology and costs matter. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVDE

Metric

DFIC

0.23%

Expense Ratio

0.22%

2.74%

Dividend Yield

2.34%

$19.06B

Net Assets

$15.42B

3,336

Holdings

4,090

Sep 24, 2019

Inception Date

Mar 23, 2022

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Index Tracked

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Foreign Large Blend

Fund Category

Foreign Large Blend

DFIC costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	AVDE	DFIC
ASMLASML Holding N.V.	1.27%	1.03%
SHELShell plc	0.89%	1.02%
BBVABanco Bilbao Vizcaya Argentaria, S.A.	0.63%	0.47%
BPBP p.l.c.	0.50%	0.39%

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Investment Analysis

AVDE

Pros

Avantis International Equity ETF has grown to nineteen billion one hundred million dollars in net assets, supporting liquidity and economies of scale for investors.
It maintains a low twenty-three basis points expense ratio, offering cost-effective exposure to a diversified international equity portfolio.
The fund yields two point seven four percent in dividends, providing a slightly higher income stream than many international equity competitors.

Considerations

The expense ratio is one basis point higher than the similar Dimensional fund, creating a modest drag on gross returns.
Inception occurred in September 2019, giving it a shorter live track record than some veteran international equity strategies.
No index is tracked and sector weights are not available, limiting transparency into its systematic factor selection process.

DFIC

Pros

Dimensional International Core Equity 2 ETF charges a lower expense ratio of twenty-two basis points, keeping investor costs minimal.
Despite recent growth to fifteen billion four hundred million dollars in assets, it remains sufficiently large for institutional and retail liquidity.
It offers highly diversified top holdings with no single position exceeding one point zero three percent, reducing single-stock concentration risk.

Considerations

The dividend yield of two point three four percent is lower than that of several comparable international equity funds.
Launched in March 2022, it has a very short operating history, limiting long-term performance evidence for investors.
Like its peer, it lacks a disclosed benchmark and sector weights, making granular attribution and risk analysis difficult.

About AVDE and DFIC

AVDE (AVDE)

The Avantis International Equity ETF (AVDE) is an exchange-traded fund that aims to provide investors with access to quality companies located outside the United States. With an inception date of September 24, 2019, this fund has grown significantly, managing net assets of USD 19.06 billion. It boasts a broad portfolio of 3,336 holdings, diversified across various regions. Operating with a competitive expense ratio of 0.23%, AVDE is categorised as a Foreign Large Blend fund. Currently, it offers a dividend yield of 2.74%, appealing to investors seeking international diversification and potential income. The fund's strategy focuses on identifying companies with strong fundamentals, offering exposure to global markets beyond the US.

DFIC (DFIC)

The Dimensional International Core Equity 2 ETF (DFIC) is an exchange-traded fund designed to provide broad exposure to developed international markets. With a Foreign Large Blend category classification, it holds a diverse array of large and mid-sized companies from regions including Europe, Asia, and the Pacific. Investors might consider this fund for its low expense ratio of 0.22%, which helps keep costs down over time. The fund features a dividend yield of 2.34% and holds approximately 4,090 securities, offering significant diversification. As with any investment in international equities, values can rise and fall due to economic conditions, currency fluctuations, and local market trends. This ETF is generally suited for those seeking to balance domestic holdings with global exposure, though individual suitability should always be assessed carefully.

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AVDE vs DFIC

Fund Snapshot