DFUS ETF

Seeking lower-cost options, investors are increasingly opting for ETFs in lieu of mutual funds. That's according to Deloitte, who recently published its 2025 Investment Management Outlook.

Dimensional U.S. Equity ETF offers a chance to outperform core passive benchmarks with a long history and over $9.6 billion in assets. The fund includes nearly 2,500 companies, mirrors the Russell 3000 Index, and has sector weightings similar to the benchmark. DFUS has outperformed its benchmark over the last two years, but potential Tech sector overexposure may be a concern in the current market cycle.

Historically, the money in ETFs has been passive, notes Dimensional Fund Advisors' Nicole Hunter. She talks about active versus passive investing strategies, highlighting the Dimensional U.S. Equity ETF (DFUS). She then goes over the disadvantages of indexing, as well as understanding market concentration risks.

JPMorgan Asset Management and Dimensional Fund Advisors make up about 40% of total active ETF assets.

The Dimensional U.S. Equity ETF has a lengthy track record, but it may not surpass the SPY for several reasons outlined here. While DFUS has a diverse portfolio including small and mid-cap stocks, this hasn't significantly impacted its performance compared to the SPY. The chances of a substantial shift away from tech and towards other sectors are minimal, making the SPY a preferable choice for long-term growth and overall returns.

DFUS is compared to the Russell 3000 Index, which covers most of the US stock market. Dimensional U.S. Equity ETF (DFUS) has lower fees than well-known iShares and Vanguard Russell 3000 ETFs, as well as a higher CAGR. For investors seeking one ETF for the entire US stock market, DFUS is recommended over its competitors with a Buy rating.