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DFAT - ETF AI Analysis

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DFAT

Dimensional U.S. Targeted Value ETF (DFAT)

Rating:69Neutral
Price Target:
DFAT, the Dimensional U.S. Targeted Value ETF, has a solid overall rating, helped by strong holdings like Permian Resources and Toll Brothers, which benefit from robust financial performance, positive momentum, and effective cost management and growth strategies. However, weaker names such as CNH Industrial and JM Smucker, which face financial challenges, high leverage, and bearish technical trends, weigh on the fund’s rating. A key risk factor is that several holdings show valuation concerns or operational headwinds, which could increase volatility for investors.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and over the past few months, showing solid recent momentum.
Broad Sector Diversification
Holdings are spread across many sectors, with meaningful exposure to financials, industrials, consumer companies, energy, and technology, which helps reduce reliance on any single industry.
Strong-Performing Top Holdings
Many of the largest positions, especially in energy and industrial names, have shown strong year-to-date performance, supporting the fund’s overall returns.
Negative Factors
Heavy U.S. Concentration
The fund is overwhelmingly invested in U.S. companies, offering very limited diversification across other countries.
Sector Tilt Toward Financials and Cyclicals
A large share of assets is in financial, industrial, and consumer cyclical stocks, which can be more sensitive to economic slowdowns.
Moderate Expense Ratio
While not especially high, the fund’s fees are not at the rock-bottom level of some broad U.S. stock ETFs, slightly reducing net returns over time.

DFAT vs. SPDR S&P 500 ETF (SPY)

DFAT Summary

DFAT, the Dimensional U.S. Targeted Value ETF, focuses on smaller and mid-sized U.S. companies that appear cheap based on their fundamentals, aiming to tap into the “value” part of the stock market rather than tracking a specific index. It spreads investments across many sectors, with top holdings like Ball and JM Smucker. Someone might invest in DFAT to diversify beyond large, well-known stocks and to seek long-term growth from undervalued companies. A key risk is that smaller value stocks can be more volatile and can go up and down sharply with changes in the overall market.
How much will it cost me?The Dimensional U.S. Targeted Value ETF (DFAT) has an expense ratio of 0.28%, meaning you’ll pay $2.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed, focusing on small and mid-cap value stocks that require more research and analysis. It’s designed to offer strategic exposure to undervalued companies with growth potential.
What would affect this ETF?The Dimensional U.S. Targeted Value ETF (DFAT) could benefit from a strong U.S. economy, particularly if small and mid-cap companies in sectors like financials and consumer cyclicals continue to grow. However, rising interest rates or economic slowdowns could negatively impact these sectors and the ETF's value-focused strategy, as higher borrowing costs and reduced consumer spending may weigh on performance. Regulatory changes or shifts in market sentiment toward growth stocks could also pose challenges.

DFAT Top 10 Holdings

DFAT is leaning hard into U.S. small- and mid-cap value, with a clear tilt toward energy and industrial names that give the fund its punch. Rising energy players like Permian Resources, Ovintiv, and HF Sinclair are doing the heavy lifting, helping power recent gains. On the industrial and consumer side, Ball and CNH Industrial look more mixed, while Toll Brothers has recently lost a bit of steam. JM Smucker is another laggard, acting more like a weight in the backpack than a rocket booster for this all‑U.S. value lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Permian Resources0.78%$113.44M$17.84B56.12%
81
Outperform
Ovintiv0.78%$112.79M$17.21B58.69%
60
Neutral
HF Sinclair Corporation0.74%$106.97M$16.26B115.93%
68
Neutral
Ball0.69%$100.26M$17.28B13.09%
59
Neutral
Performance Food Group0.65%$94.61M$17.97B13.82%
65
Neutral
Toll Brothers0.65%$93.87M$13.64B19.67%
77
Outperform
CNH Industrial0.63%$91.40M€11.02B-18.20%
55
Neutral
JM Smucker0.63%$90.97M$12.75B8.43%
49
Neutral
BorgWarner0.63%$90.76M$13.07B69.88%
65
Neutral
APA0.62%$89.40M$13.19B104.27%
73
Outperform

DFAT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
69.04
Positive
100DMA
66.64
Positive
200DMA
63.60
Positive
Market Momentum
MACD
0.62
Negative
RSI
63.22
Neutral
STOCH
68.11
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DFAT, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 70.31, equal to the 50-day MA of 69.04, and equal to the 200-day MA of 63.60, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 68.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DFAT.

DFAT Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$14.49B0.28%
69
Neutral
$37.18B0.33%
71
Outperform
$30.18B0.25%
68
Neutral
$17.82B0.15%
73
Outperform
$15.39B0.21%
73
Outperform
$13.47B0.55%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DFAT
Dimensional U.S. Targeted Value ETF
71.66
18.40
34.55%
CGDV
Capital Group Dividend Value ETF
AVUV
Avantis U.S. Small Cap Value ETF
AVLV
Avantis U.S. Large Cap Value ETF
DFUV
Dimensional US Marketwide Value ETF
PVAL
Putnam Focused Large Cap Value ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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