ETF Evaluator: Dimensional Short-Duration Fixed Inc ETF () Follow This ETF

Dimensional Short-Duration Fixed Inc ETF Overview

Dimensional Short-Duration Fixed Inc ETF (DFSD) is an actively managed Taxable Bond Short-Term Bond exchange-traded fund (ETF). Dimensional Fund Advisors launched the ETF in 2021.

The investment seeks to maximize total returns from the universe of fixed income securities in which the Portfolio invests; Total return is comprised of income and capital appreciation. At least 80% of the Portfolio’s net assets will be invested in fixed income securities considered to be investment grade quality. The Portfolio primarily invests in securities that mature within five years from the date of settlement. It will generally maintain a weighted average duration of no more than one half year greater than, and no less than one year below, the weighted average duration of the Portfolio’s benchmark, the ICE BofA 1-5 Year US Corporate & Government Index.

About Dimensional Short-Duration Fixed Inc ETF (DFSD)

There are 4 members of the management team with an average tenure of 3.89 years: David Plecha (2021), Lacey Huebel (2021), Christopher Cummins (2025) and Joseph Kolerich (2021). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA 1-5Y US Corp&Govt TR USD index with a weighting of 100%. Dimensional Short-Duration Fixed Inc ETF has 1588 securities in its portfolio. The top 10 holdings constitute 9.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Dimensional Short-Duration Fixed Inc ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Dimensional Short-Duration Fixed Inc ETF has 40.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.8% (59.3% domestic bond, 40.5% foreign bond and 0.0% convertible bond). Dimensional Short-Duration Fixed Inc ETF has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $7 billion in total assets, which is above the $3 billion average for the Short-Term Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

DFSD Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Dimensional Short-Duration Fixed Inc ETF expense ratio is low compared to funds in the Short-Term Bond category. Dimensional Short-Duration Fixed Inc ETF has an expense ratio of 0.16%, which is 43% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Dimensional Short-Duration Fixed Inc ETF has a portfolio turnover rate of 20%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 77% for the Short-Term Bond category.

Recently, in the month of July 2026, Dimensional Short-Duration Fixed Inc ETF returned -0.2%, which earned it a grade of F, as the Short-Term Bond category had an average return of -0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Dimensional Short-Duration Fixed Inc ETF has a trailing yield of 4.59%, which is above the 4.54% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Dimensional Short-Duration Fixed Inc ETF Grades

Year to date, the ETF has returned 0.8%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.3% over the past year (grade of D) and 5.2% over the past three years (grade of D).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Dimensional Short-Duration Fixed Inc ETF, including its riskiness, submit your email to unlock the rest of the article.