DFAT: Improved Growth Outlook Powering Small-Cap Value Returns In 2026

DFAT: Improved Growth Outlook Powering Small-Cap Value Returns In 2026

Dimensional U.S. Targeted Value ETF (DFAT) is upgraded to a 'buy' due to improved growth prospects, compelling P/E valuations, and adequate quality controls. DFAT now offers 12.91% expected EPS growth and trades at a cheap 11.86x forward P/E, supporting double-digit return potential over the next year and 5-10% more in 2026. DFAT outperformed IWN over the past decade, offers a lower portfolio beta, and emphasizes profitability, with 89% of holdings reporting positive net income last year. While AVUV has outperformed since inception, DFAT's diversified, quality-focused portfolio looks just as good today.

Investment Thesis I last reviewed the Dimensional U.S. Targeted Value ETF ( DFAT ) on May 24, 2023, when I assigned it a "hold" rating and asked readers to weigh its strong profitability characteristics against its relatively weak This article was written by The Sunday Investor 7.37K Followers Follow The Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10. The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!