DFIV

About DFIV

Dimensional Fund Advisors LP’s (the “Advisor”) tax managementstrategies for the International Value ETF are designed to maximize the after tax value of a shareholder’sinvestment. Generally, the Advisor buys and sells securities for the Portfolio with the goals of: (i)delaying and minimizing the realization of net capital gains (e.g., selling stocks with capital lossesto offset gains, realized or anticipated); and (ii) maximizing the extent to which any realized net capitalgains are long-term in nature (i.e., taxable at lower capital gains tax rates).Toachieve the International Value ETF’s investment objective, the Advisor implements an integrated investmentapproach that combines research, portfolio design, portfolio management, and trading functions. As furtherdescribed below, the Portfolio’s design emphasizes long-term drivers of expected returns identifiedby the Advisor’s research, while balancing risk through broad diversification across companies andsectors. The Advisor’s portfolio management and trading processes further balance those long-term drivers of expectedreturns with shorter-term drivers of expected returns and trading costs.TheInternational Value ETF is designed to generally purchase securities of large non-U.S. companies in countrieswith developed markets that the Advisor determines to be lower relative price stocks. A company’s marketcapitalization is the number of its shares outstanding times its price per share. Under a market capitalizationweighted approach, companies with higher market capitalizations generally represent a larger proportionof the Portfolio than companies with relatively lower market capitalizations. The Advisor may overweightcertain stocks, including smaller companies, lower relative price stocks, and/or higher profitabilitystocks within the large-cap value segment of developed ex U.S. markets. An equity issuer is consideredto have a low relative price (i.e., a value stock) primarily because it has a low price in relation toits book value. In assessing relative price, the Advisor may consider additional factors such as priceto cash flow or price to earnings ratios. An equity issuer is considered to have high profitability becauseit has high earnings or profits from operations in relation to its book value or assets. The criteriathe Advisor uses for assessing relative price and profitability are subject to change from time to time.TheInternational Value ETF intends to purchase securities of large companies associated with developed marketcountries that the Advisor has designated as approved markets. The Advisor determines the minimum marketcapitalization of a large company with respect to each country or region in which the Portfolio invests.Based on market capitalization data as of December 31, 2024, for the Portfolio, the market capitalizationof a large company in any country or region in which the Portfolio invests would be $1,331 million orabove. This threshold will change due to market conditions.The Advisor may also increaseor reduce the International Value ETF’s exposure to an eligible company, or exclude a company, basedon shorter-term considerations, such as a company’s price momentum and short-run reversals. In addition,the Advisor seeks to reduce trading costs using a flexible trading approach that looks for opportunitiesto participate in the available market liquidity, while managing turnover and explicit transaction costs.TheInternational Value ETF also may gain exposure to companies associated with approved markets by purchasingequity securities in the form of depositary receipts, which may be listed or traded outside the issuer’sdomicile country. The Portfolio may purchase or sell futures contracts and options on futures contractsfor foreign or U.S. equity securities and indices, to increase or decrease equity market exposure basedon actual or expected cash inflows to or outflows from the Portfolio. Because many of the Portfolio’sinvestments may be denominated in foreign currencies, the Portfolio may enter into foreign currency exchangetransactions, including foreign currency forward contracts, in connection with the settlement of foreignsecurities or to transfer cash balances from one currency to another currency.TheInternational Value ETF may lend its portfolio securities to generate additional income.TheInternational Value ETF is an actively managed exchange-traded fund and does not seek to replicate theperformance of a specific index and may have a higher degree of portfolio turnover than such index funds.