Dimensional Grafts Vanguard’s Tax-Busting Model Onto Mutual Fund

Dimensional Fund Advisors is launching the first exchange-traded fund share class of a mutual fund since Vanguard’s patent on the model expired nearly three years ago. The move could broaden investor access to Dimensional’s strategies and increase competitive pressure in the asset-management ETF market, but it is unlikely to have an immediate material market impact.

Analysis

Dimensional Fund Advisors is launching the first exchange-traded fund share class of a mutual fund since Vanguard’s patent on the model expired nearly three years ago. The move could broaden investor access to Dimensional’s strategies and increase competitive pressure in the asset-management ETF market, but it is unlikely to have an immediate material market impact.