DFAI

About DFAI

To achieve the International Core ETF’s investment objective,Dimensional Fund Advisors LP (the “Advisor”) implements an integrated investment approachthat combines research, portfolio design, portfolio management, and trading functions. As further describedbelow, the Portfolio’s design emphasizes long-term drivers of expected returns identified by theAdvisor’s research, while balancing risk through broad diversification across companies, sectors,and countries. The Advisor’s portfolio management and trading processes further balance those long-termdrivers of expected returns with shorter-term drivers of expected returns and trading costs.TheInternational Core ETF is designed to purchase a broad and diverse group of readily marketable equitysecurities within a market capitalization weighted universe (e.g., the larger the company, the greaterthe proportion of the universe it represents) of non-U.S. companies associated with developed marketsthat have been authorized for investment by the Advisor’s Investment Committee (the “InternationalUniverse”). The Portfolio will invest in companies of all sizes, with modestly increased exposureto smaller capitalization, lower relative price, and higher profitability companies as compared to theirrepresentation in the International Universe. The Portfolio’s modestly increased exposure to smallercapitalization, lower relative price, and higher profitability companies may be achieved by decreasingthe allocation of the Portfolio’s assets to larger capitalization, higher relative price, or lowerprofitability companies relative to their weight in the International Universe. An equity issuer is consideredto have a high relative price (i.e., a growth stock) primarily because it has a high price in relationto its book value. An equity issuer is considered to have a low relative price (i.e., a value stock)primarily because it has a low price in relation to their book value. In assessing relative price, theAdvisor may consider additional factors such as price to cash flow or price to earnings ratios. An equityissuer is considered to have high profitability because it has high earnings or profits from operationsin relation to its book value or assets. The criteria the Advisor uses for assessing relative price andprofitability are subject to change from time to time. As a non-fundamental policy, under normal circumstances,the Portfolio will invest at least 80% of its net assets in equity securities.TheAdvisor may also increase or reduce the International Core ETF’s exposure to an eligible company,or exclude a company, based on shorter-term considerations, such as a company’s price momentum,short-run reversals, and investment characteristics. In assessing a company’s investment characteristics,the Advisor considers ratios such as recent changes in assets divided by total assets. The criteria theAdvisor uses for assessing a company’s investment characteristics are subject to change from timeto time. In addition, the Advisor seeks to reduce trading costs using a flexible trading approach thatlooks for opportunities to participate in the available market liquidity, while managing turnover andexplicit transaction costs.The Advisor will seek to set country weights based on therelative market capitalizations of eligible companies within each Approved Market. As of the date ofthis Prospectus, the International Core ETF can invest in the following countries that have been designatedas Approved Markets by the Advisor: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany,Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore,Spain, Sweden, Switzerland, and the United Kingdom. The countries designated as Approved Markets willchange from time to time. In addition, the countries in which the Portfolio actually holds investmentswill change from time to time. For additional information regarding the Portfolio’s Approved Markets,see the “Additional Information on Investment Objectives and Policies—Approved Markets”section of the Prospectus.The International Core ETF may gain exposure to companiesassociated with Approved Markets by purchasing equity securities in the form of depositary receipts,which may be listed or traded outside the issuer’s domicile country. The Portfolio also may purchaseor sell futures contracts and options on futures contracts for foreign or U.S. equity securities andindices to increase or decrease equity market exposure based on actual or expected cash inflows to oroutflows from the Portfolio. Because many of the Portfolio’s investments may be denominated inforeign currencies, the Portfolio may enter into foreign currency exchange transactions, including foreigncurrency forward contracts, in connection with the settlement of foreign securities or to transfer cashbalances from one currency to another currency.The International Core ETF maylend its portfolio securities to generate additional income.The International CoreETF is an actively managed exchange traded fund and does not seek to replicate the performance of a specificindex and may have a higher degree of portfolio turnover than such index funds.