Dimensional US Targeted Value ETF (DFAT): A Unique Blend of Value and Quality in Small-Cap Investing

The Dimensional US Targeted Value ETF (NYSEARCA:DFAT) is a small-cap fund that focuses on the value investment theme. It combines value and quality in smaller companies and offers a low volatility investment option. DFAT is attractively valued and is suitable for investors seeking a diversified portfolio of US small-cap stocks with a value and quality tilt.

The Dimensional US Targeted Value ETF (DFAT) is a small-cap fund that combines value and quality in its investment strategy, offering a low-volatility option for investors. This actively managed ETF seeks long-term capital growth without tracking any specific index, focusing instead on small and mid-cap stocks with attractive valuations and strong fundamentals [5].

DFAT, as of July 18, 2025, managed $10.9 billion in assets, with a portfolio of nearly 1,500 holdings. The fund's allocation is heavily skewed towards micro and small caps, which account for 38.4% and 55.6% of the fund, respectively, while mid caps make up only 4.4%. This focus on smaller capitalization companies is a key differentiator, providing investors with exposure to a diverse range of U.S. small-cap stocks [5].

The ETF's core investment thesis is supported by Dimensional's factor-based methodology, which aims to identify stocks that offer a balance of value and quality. This approach has historically contributed to DFAT's outperformance and contained volatility, making it an attractive option for investors seeking a low-volatility investment [5].

DFAT's focus on value and quality is further demonstrated by its holdings in companies like Civitas Resources Inc (CIVI) and Hecla Mining Co (HL). Civitas Resources Inc, which makes up 0.20% of the Dimensional US Small Cap Value ETF (DFSV), has seen significant insider buying activity within the past six months. Similarly, Hecla Mining Co, which is a top holding in DFSV, has also experienced insider buying, indicating confidence in these companies' prospects [2].

Investors should note that while DFAT offers a diversified portfolio, it is important to consider the fund's risk profile and align it with their investment objectives. The ETF's focus on smaller companies means it may be more susceptible to market fluctuations compared to larger-cap funds [5].

In conclusion, the Dimensional US Targeted Value ETF (DFAT) provides investors with a well-diversified, low-volatility option for investing in U.S. small-cap stocks with a value and quality tilt. Its focus on attractive valuations and strong fundamentals, supported by a factor-based investment strategy, makes it an appealing choice for investors seeking long-term capital growth.

References:
[1] https://finance.yahoo.com/quote/AVUV/
[2] https://www.nasdaq.com/articles/insiders-bullish-certain-holdings-dfsv-0
[3] https://finance.yahoo.com/quote/DFAT?p=DFAT
[4] https://www.globenewswire.com/news-release/2025/07/24/3120828/0/en/Dimensional-Fund-Advisors-Ltd-Form-8-3-UNITE-GROUP-PLC-THE-Ordinary-Shares.html
[5] https://seekingalpha.com/article/4804331-dfat-a-low-volatility-attractively-valued-small-cap-etf