DFUV

About DFUV

Dimensional Fund Advisors LP’s (the “Advisor”) tax managementstrategies for the US Marketwide 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 US Marketwide 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.TheUS Marketwide Value ETF is designed to purchase a broad and diverse group of securities of U.S. companiesthat the Advisor determines to be lower relative price stocks. A company’s market capitalization isthe number of its shares outstanding times its price per share. Companies with higher market capitalizationsgenerally represent a larger proportion of the Portfolio than companies with relatively lower marketcapitalizations. The Advisor may overweight certain stocks, including smaller companies, lower relativeprice stocks, and/or higher profitability stocks within the value segment of the U.S. market. An equityissuer is considered to have a low relative price (i.e., a value stock) primarily because it has a lowprice in relation to its book value. In assessing relative price, the Advisor may consider additionalfactors such as price to cash flow or price to earnings ratios. An equity issuer is considered to havehigh profitability because it has high earnings or profits from operations in relation to its book valueor assets. The criteria the Advisor uses for assessing relative price and profitability are subject tochange from time to time.The Advisor may also increase or reduce the Portfolio’sexposure to an eligible company, or exclude a company, based on shorter-term considerations, such asa company’s price momentum, short-run reversals, and investment characteristics. In assessing a company’sinvestment characteristics, the Advisor considers ratios such as recent changes in assets divided bytotal assets. The criteria the Advisor uses for assessing a company’s investment characteristics aresubject to change from time to time. In addition, the Advisor seeks to reduce trading costs using a flexibletrading approach that looks for opportunities to participate in the available market liquidity, whilemanaging turnover and explicit transaction costs.As a non-fundamental policy,under normal circumstances, the Portfolio will invest at least 80% of its net assets in securities ofU.S. companies. The Advisor generally defines a U.S. company as one that is listed and principally tradedon a securities exchange in the United States that is deemed appropriate by the Advisor. The Advisorconsiders companies of all market capitalizations for purchase by the Portfolio.ThePortfolio may purchase or sell futures contracts and options on futures contracts for U.S. equity securitiesand indices, to increase or decrease equity market exposure based on actual or expected cash inflowsto or outflows from the Portfolio.The Portfolio may lend its portfolio securities to generateadditional income.The Portfolio is an actively managed exchange traded fundand does not seek to replicate the performance of a specific index and may have a higher degree of portfolioturnover than such index funds.