Alternative Investments/ESG: Dimensional Announces Equity ETFs Targeting Carbon Emissions

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The three new Dimensional equity sustainability exchange traded funds listed on the New York Stock Exchange on Wednesday.

Dimensional Fund Advisors launched three new ETFs offering broadly diversified exposure to U.S., developed international, and emerging markets equities while applying climate-focused sustainability considerations – in particular, a reduction in carbon emissions exposure. The ETFs were listed on the NYSE on Wednesday and have net expense ratios varying from 0.18% to 0.41%. (Dimensional)

The fund manager has also filed for a global fixed income sustainability ETF, which it intends to launch later this month.

The new funds are:

The US Sustainability Core 1 ETF (NYSE: DFSU)

• Net expense ratio: 0.18%

• Description: U.S. market-wide solution emphasizing higher expected returns and targeting reduced carbon emissions exposure

The International Sustainability Core 1 ETF (NYSE: DFSI)

• Net expense ratio: 0.24%

• Description: Developed non-U.S. market-wide solution emphasizing higher expected returns and targeting reduced carbon emissions exposure

The Emerging Markets Sustainability Core 1 ETF (NYSE: DFSE)

• Net expense ratio: 0.41%

• Description: Emerging markets market-wide solution emphasizing higher expected returns and targeting reduced carbon emissions exposure

Dimensional: Fundspeak

“Dimensional’s approach to sustainability investing integrates emissions-based exclusions and weighting criteria to reduce carbon footprint exposure both across and within sectors,” said Co-CEO and Chief Investment Officer Gerard O’Reilly. “These funds importantly begin with Dimensional’s time-tested investment process, which blends what we believe is the best of passive investing with flexible, active implementation before layering in targeted, data-driven sustainability considerations. This enables us to focus on delivering sound investment solutions that are broadly diversified and designed to pursue higher expected returns while also driving reductions in carbon emissions exposures.”

Related Story: Dimensional Has Four Sustainable ETFs On The Anvil

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