What are ETFs and how do they function?

Exchange-traded funds are investment funds that track a basket of assets, such as stocks or bonds. They trade on exchanges like individual shares, providing investors with diversification and flexibility. By holding multiple securities, ETFs spread risk across various companies or sectors. Investors can buy or sell ETF shares throughout the trading day at market prices, making them accessible and liquid. Understanding ETF mechanics helps investors evaluate costs, tracking accuracy, and potential returns. Both funds discussed here follow this structure, offering diversified access to the US large-blend equity market, with unique features related to cost, size, and historical performance.

What does expense ratio mean for investors?

The expense ratio is the annual cost of managing an investment fund, expressed as a percentage of assets under management. For example, Dimensional US Core Equity Market ETF (stock_1) has an expense ratio of 0.12%, while Dimensional US Equity Market ETF (stock_2) has a ratio of 0.09%. This means for every £1,000 invested, stock_1 costs £1.20 annually, whereas stock_2 costs £0.90. Lower expense ratios help retain a larger portion of your investment, potentially enhancing overall returns over time. Comparing expense ratios between funds helps investors assess the relative cost efficiency when selecting investment products.

How do sector weights affect ETF investment?

Sector weights indicate how an ETF distributes its assets across different economic sectors, such as technology, healthcare, or finance. Understanding sector weights is essential for assessing concentration risk and market exposure. For example, if both funds primarily hold tech stocks, a market downturn in technology could affect their performance more significantly. Unfortunately, current data shows sector weights are not available for either stock_1 or stock_2. Investors should research these distributions to make informed decisions, as the funds might exhibit different risk profiles based on their sector allocations, despite sharing many top holdings.

How do the two ETFs compare in terms of fees and net assets?

Dimensional US Core Equity Market ETF (stock_1) has an expense ratio of 0.12% and net assets of £12.8 billion. Dimensional US Equity Market ETF (stock_2) has a lower expense ratio of 0.09% and a larger asset base of £21.3 billion. A lower expense ratio means cost savings for investors, while higher net assets generally indicate better liquidity, allowing for easier buying and selling without significant price impact. When evaluating these funds, consider the trade-offs between costs and liquidity, as both factors can influence investment returns and accessibility.

What are the similarities and differences in top holdings?

Both funds share major tech stocks in their top holdings. The shared top-ten holdings include NVDA, AAPL, MSFT, AMZN, GOOGL, GOOG, AVGO, META, and MU. However, their weights differ slightly, with stock_1 holding NVDA at 7.05% and AAPL at 6.94%, while stock_2 holds NVDA at 7.17% and AAPL at 6.89%. These similarities indicate a focus on large-cap technology, but slight variations in allocation can influence performance. It's essential to examine individual holding weights and diversification when assessing potential returns and risks for these ETFs.

How do the two ETFs compare on dividend yield?

Dimensional US Core Equity Market ETF (stock_1) offers a dividend yield of 0.88%, while Dimensional US Equity Market ETF (stock_2) has a slightly lower yield of 0.83%. This difference indicates that stock_1 generates slightly more income for investors relative to its asset base. Dividends can enhance total returns, particularly for income-focused investors, but should not be the only factor considered. Evaluate both funds alongside their expenses, asset sizes, and historical performance to form a comprehensive view of their potential benefits and drawbacks.

How have inception dates influenced the funds?

The Dimensional US Core Equity Market ETF (stock_1) has a shorter operational history, starting on November 17, 2020, while the Dimensional US Equity Market ETF (stock_2) began trading on September 25, 2001. A longer inception date suggests that stock_2 has experienced various market conditions, potentially aiding in assessing performance stability and management effectiveness. Conversely, stock_1's recent launch means less historical data is available for analysis. When selecting an ETF, consider how the fund's track record and performance in diverse market environments may affect your investment strategies and objectives.

How do these ETFs align with investment goals?

Dimensional US Core Equity Market ETF (stock_1) and Dimensional US Equity Market ETF (stock_2) are categorised as large-blend funds. These funds are suitable for investors seeking diversified exposure to large-cap US equities, focusing on both growth and value companies. Their investment goals align with capturing overall market performance. Investors prioritising income might lean towards stock_1 due to its slightly higher dividend yield, while cost-conscious investors could favour stock_2 for its lower expense ratio. Understanding investment objectives helps in selecting the right fund that aligns with financial goals and personal risk tolerance.

What factors influence ETF liquidity?

Liquidity is influenced by the fund's total net assets and trading volume. Dimensional US Core Equity Market ETF (stock_1) has £12.8 billion in net assets, while Dimensional US Equity Market ETF (stock_2) has £21.3 billion. Generally, larger funds exhibit better liquidity, allowing investors to buy or sell shares easily at reasonable prices. Liquidity impacts the bid-ask spread and can affect the trading experience. When comparing funds, consider not just the assets under management but also daily trading volumes to ensure smooth transactions and favourable pricing when investing.

What are some common misconceptions about ETFs?

A common misconception is that all ETFs are identical regarding cost, risk, and return. Each fund has unique characteristics, such as expense ratios and historical performance. For example, stock_1's expense ratio of 0.12% might appear similar to stock_2's 0.09%, but slight differences can significantly affect long-term returns. Another misconception is that higher dividend yields equate to better investment; they may signal higher risk. Understanding fund details and assessing individual factors like fees, performance, and investment goals can help investors make informed choices rather than relying on broad generalisations about ETFs.

Why should investors read fund prospectuses?

Fund prospectuses provide essential information about an ETF's objectives, strategies, risks, and costs, including expense ratios and dividend policies. By reading prospectuses, investors gain insight into how a fund operates, its management structure, and historical performance. This transparency helps assess whether the ETF aligns with personal investment goals. For stock_1 and stock_2, the prospectus offers clarity on their respective strategies and risks, particularly given their focus on US large-blend equities. Familiarising with this document is vital for informed decision-making in the complex investment landscape.

What is the disclaimer regarding this educational content?

This content is for educational purposes only and should not be interpreted as financial advice. It is based on data from the provided context and FUND DATA. Investors should consider their financial situation, objectives, and risk tolerance before making investment decisions. Consulting a financial advisor or professional for personalised advice is recommended. Understanding ETFs, such as stock_1 and stock_2, can enhance your knowledge, but individual investment choices should align with your unique financial goals and circumstances.

DFAU vs DFUS

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

Compare Dimensional US Core Equity Market ETF (DFAU) and Dimensional US Equity Market ETF (DFUS). This page outlines fees, holdings, dividends and how each fund tracks its market. DFAU charges 0.12% while DFUS charges 0.09%, with distinct net assets and top holdings including NVDA, AAPL and MSFT. Both focus on large blend US equities. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

DFAU

Metric

DFUS

0.12%

Expense Ratio

0.09%

0.88%

Dividend Yield

0.83%

$12.78B

Net Assets

$21.30B

2,225

Holdings

2,245

Nov 17, 2020

Inception Date

Sep 25, 2001

–

Index Tracked

–

Large Blend

Fund Category

Large Blend

DFUS costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	DFAU	DFUS
NVDANVIDIA Corporation	7.05%	7.17%
AAPLApple Inc.	6.94%	6.89%
MSFTMicrosoft Corporation	5.35%	5.25%
AMZNAmazon.com, Inc.	3.28%	3.49%
GOOGLAlphabet Inc.	2.64%	2.86%
GOOGAlphabet Inc.	2.17%	2.35%
AVGOBroadcom Inc.	2.09%	2.29%
METAMeta Platforms, Inc.	1.98%	2.15%
MUMicron Technology, Inc.	1.62%	1.58%

Discover More Comparisons

AVUS vs DFUS

Compare AVUS and DFUS, two US large blend ETFs. Review expense ratios of 0.15% and 0.09%, dividend yields, top holdings and tracking differences.

DFAC vs DFUS

Compare DFAC and DFUS ETFs. Review fees, holdings, dividends, and tracking. DFAC has 0.17% expense ratio; DFUS costs 0.09%. Neutral financial data analysis.

Investment Analysis

DFAU

Pros

DFAU offers a relatively low expense ratio of 0.12%, making it cost-effective for investors.
With net assets of $12.8 billion, the fund exhibits a substantial size, potentially aiding liquidity.
A dividend yield of 0.88% provides some income component for investors.

Considerations

The inception date of Nov 17, 2020, suggests a shorter operational history compared to DFUS.
Sector weights for DFAU are not available, limiting transparency for sector allocation analysis.
The fund's top holdings are concentrated with tech stocks, which could increase volatility.

DFUS

Pros

DFUS boasts a slightly lower expense ratio of 0.09%, making it marginally more cost-efficient.
It has a long history, with an inception date of Sep 25, 2001, showing stability and established performance.
With $21.3 billion in net assets, the fund is larger, potentially offering better liquidity.

Considerations

The dividend yield of 0.83% is marginally lower than that of DFAU, offering slightly less income.
Like DFAU, DFUS lacks available sector weights, reducing transparency into sector diversification.
The fund's concentration in major tech stocks, including NVDA and AAPL, may expose it to sector-specific risks.

About DFAU and DFUS

DFAU (DFAU)

The Dimensional US Core Equity Market ETF (DFAU) offers investors access to a broad slice of the United States' largest publicly listed companies. With a net asset value of approximately USD 12.78 billion, it provides a diversified portfolio of around 2,225 holdings, primarily focusing on the Large Blend category. The fund employs a systematic investment approach, aiming to capture returns associated with various equity factors over the long term. Its expense ratio is competitively low at 0.12%, making it an accessible option for those looking to build a core portfolio component. Investors should note that the current dividend yield stands at 0.88%. As an exchange-traded fund, its value fluctuates with market conditions, and past performance is not indicative of future results. It was launched in November 2020.

DFUS (DFUS)

The Dimensional US Equity Market ETF (DFUS) is designed to provide broad exposure to the U.S. equity market. With an inception date of 25 September 2001 and a current net asset value of approximately USD 21.30 billion, this Large Blend fund holds over 2,200 companies, offering significant diversification. It features a low expense ratio of 0.09%, making it a cost-effective option for investors seeking general market access. While the fund has a reported dividend yield of 0.83%, it is important to note that its primary goal is long-term capital growth through equity exposure. Investors should remember that stock market values can rise and fall, and returns are not guaranteed. This ETF serves as a tool for those looking to understand how broad market indices function within a portfolio. As with any investment, it is essential to consider your own financial situation and risk tolerance before proceeding.

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DFAU vs DFUS

Fund Snapshot

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AVUS vs DFUS

DFAC vs DFUS

Investment Analysis

DFAU

Pros

Considerations

DFUS

Pros

Considerations

About DFAU and DFUS

Buy DFAU or DFUS in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What are ETFs and how do they function?

What does expense ratio mean for investors?

How do sector weights affect ETF investment?

How do the two ETFs compare in terms of fees and net assets?

What are the similarities and differences in top holdings?

How do the two ETFs compare on dividend yield?

How have inception dates influenced the funds?

How do these ETFs align with investment goals?

What factors influence ETF liquidity?

What are some common misconceptions about ETFs?

Why should investors read fund prospectuses?

What is the disclaimer regarding this educational content?

Fund Snapshot

About DFAU and DFUS

Discover More Comparisons

AVUS vs DFUS

DFAC vs DFUS