Dimensional Fund Advisors, the largest active ETF manager in the United States, has listed its first European Exchange-Traded Funds.
Andreas Constantoulakis, Head of ETF Capital Markets for EMEA at Dimensional
The two new active UCITS funds were launched with the support of State Street Corporation, which provides end-to-end operational services.
The Global Core Equity UCITS ETF and the Global Targeted Value UCITS ETF have been listed on the London Stock Exchange and Xetra in Frankfurt. The funds are domiciled in Ireland and regulated by the Central Bank of Ireland.
Details of the new ETFs
The two ETFs represent Dimensional’s official entry into the European ETF market, following successful launches in the United States and Australia. The company currently manages over £226 billion in ETF assets globally across more than 40 funds.
The new UCITS funds are registered for marketing in seven European countries: Finland, Germany, Ireland, the Netherlands, Norway, Sweden and the United Kingdom. They are listed in London in sterling and US dollars, and in Frankfurt in euros.
Like all Dimensional products, the ETFs do not track a benchmark index but apply a systematic and active investment approach, with the aim of maximising total long-term returns. The Global Core Equity ETF has an annual cost of 0.26%, while the Global Targeted Value ETF costs 0.44%.
Dimensional’s strategy and State Street’s role
For this launch, Dimensional relied on State Street’s operational infrastructure. The full servicer mandate includes custody, depository, fund accounting, ETF basket creation, creation and redemption order management, settlement, transfer agency and reporting services.
‘We are delighted to support Dimensional Fund Advisors in implementing their actively managed ETFs in the European market,’ said Ken Shaw, Head of ETF Product for EMEA at State Street. ‘Our global leadership in ETFs and our robust operational infrastructure uniquely position us to support this important launch by Dimensional.’
On the other hand, Andreas Constantoulakis, Head of ETF Capital Markets for EMEA at Dimensional, explained the rationale behind the move: “ETFs are gaining popularity around the world, thanks to their compatibility with financial technology and ease of access. A growing number of financial professionals in Europe want the option to use Dimensional ETFs in addition to existing UCITS funds and separate accounts. State Street’s experience, technology and expertise in ETF servicing have been instrumental in preparing for this launch, and we look forward to working with them as our ETF offering expands.” Constantoulakis, recently hired from UBS Asset Management, is one of the key figures chosen by Dimensional to lead its European expansion.
The European market context
The launch comes at a time of strong growth for active ETFs in Europe. According to an analysis by State Street, annual inflows into active ETFs in the region increased substantially from $7 billion to $20 billion in 2024. The number of active ETF products available grew from 103 to 178.
The choice of Ireland as the domicile is in line with this trend. Both Ireland and Luxembourg, the two main European ETF domiciles, are shaping regulatory environments that encourage innovation while safeguarding investor interests.
Dimensional has confirmed that these first two funds are likely to be joined by other new ETF strategies over the course of the next year.
Source: ETFWorld.co.uk
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