European ETF Market Set to Welcome Dimensional Intrusion

Dimensional Fund Advisors, a global investment firm managing $853 billion in assets under management, has announced the launch of its first UCITS ETFs in Europe. The new funds, subject to regulatory approval, will offer investors greater choice and are set to outperform the market.

The two newly launched ETFs will focus on developed markets, with a core all cap fund and a small and mid cap value fund. Both ETFs will be listed in London (USD and GBP) and Frankfurt (EUR).

Dimensional's investment strategy for these ETFs is driven by an evidence-based approach, Nobel Prize-winning insights, and decades of expertise. The firm systematically targets securities with higher expected returns, a strategy it has been applying since 1981.

Unlike many ETFs, Dimensional does not have a constraint of minimizing tracking error. Instead, the ETFs use a flexible daily process and varying emphasis on known equity premiums to pursue higher expected returns.

John Romiza, Co-CEO of Dimensional Fund Advisors Ltd., commented, "The new funds offer investors greater choice. We believe our philosophy of starting with the market and aiming to beat it through systematically targeting securities with higher expected returns will be well-received by European investors."

Nathan Lacaze, also Co-CEO of Dimensional Fund Advisors Ltd., added, "Our approach is to start with the market and aim to beat it. We believe in focusing on every day increasing expected returns, rather than minimizing tracking error."

The ETFs will be managed alongside Dimensional's other fund families and client assets, with a team-based approach. While specific individual managers for these new ETFs have not been publicly named as of September 2025, Dimensional UK, which is authorized and supervised by the UK's Financial Conduct Authority, will manage the funds.

Dimensional has significant experience managing active ETFs in the US and Australia, with ETF assets over $200 billion across more than 40 funds. The firm has filed to list two ETFs by the end of 2025.

The goal of these ETFs is to outperform the market, a goal that aligns with Dimensional's mission of applying financial science to investing. The ETFs will employ an investment strategy similar to that of existing core and value UCITS funds.

In conclusion, Dimensional Fund Advisors' entry into the European ETF market is a significant development. With its evidence-based approach, decades of expertise, and focus on higher expected returns, the firm is poised to offer European investors a compelling new investment option.