Dimensional's ‘New' ETFs Are Really ETF Share Classes

Equity ETF Content Hub Dimensional’s ‘New’ ETFs Are Really ETF Share Classes DJ Shaw October 5, 2026 Three Dimensional Fund Advisors ETFs that NYSE Arca announced as Monday launches are not new funds at all. Instead, they are existing ETFs that now trade as share classes of older Dimensional mutual funds, according to the firm. Key Takeaways: NYSE Arca’s three Monday “launches” from Dimensional are existing ETFs now operating as share classes of mutual funds. Every converted ETF keeps its original ticker, while mutual fund investors see no change to tickers or names. Two of the converted portfolios now also aim to minimize federal income taxes on returns. The three funds include the Dimensional U.S. Core Equity 2 ETF (DFAC) , the Dimensional U.S. Small Cap ETF (DFAS) , and the Dimensional U.S. Targeted Value ETF (DFAT) . Each ETF merged into its matching mutual fund after the market closed on October 2 and kept its ticker, Dimensional said. A share class is another version of the same fund, with its own fees and way of trading. As of Monday, holders of the old ETFs own ETF shares in funds that offer both versions. Mutual fund investors see no change to their fund’s ticker, name, or ID numbers, according to Dimensional. Monday’s trio marks the second and final batch of an eight-fund conversion. Five other Dimensional ETFs made the same switch after the market closed September 25, the firm said. See more: Dimensional Consolidates $250B Lineup Into ETF Share Classes The conversions combine roughly $100 billion in ETFs with $150 billion in mutual funds, according to Dimensional’s June 18 announcement. As a result, the firm also announced fee cuts across those funds. This appears to be the first time that an issuer has folded existing ETFs into mutual funds as share classes. Dimensional became the first active manager to win regulatory approval for ETF share classes in 2025, the firm said. It launched the industry’s first active ETF share class, the Dimensional US Micro Cap ETF (DFMC) , earlier this year. Dimensional Fee Cuts Take Effect November 1 Starting November 1, management fees and expenses will fall 9% on an asset-weighted basis, according to the announcement. That method gives bigger funds more weight than smaller ones. For ETF investors, DFAT’s expense ratio, or annual fee, will top out at 0.26%, down from the standalone ETF’s 0.28%. DFAS will drop to 0.25% from 0.26%, though DFAC holds at 0.17%, Dimensional’s figures show. Two of Monday’s funds also took on a second goal this summer, according to a Securities and Exchange Commission filing. Since July 16, the portfolios behind DFAS and DFAT have aimed to minimize federal income taxes on returns. To do that, managers may sell losing stocks to offset gains, the filing said. They also aim to keep any gains long-term, since those face lower tax rates. For more news, information, and analysis, visit the Equity ETF Content Hub . RELATED TOPICS DFAC DFAS DFAT DFMC Dimensional dj shaw equity ETF Content Hub ETF Share Class Earn free CE credits and discover new strategies