Fund Evaluator:

Dimensional 2040 Target Dt Rtr Inc Instl Overview

Dimensional 2040 Target Dt Rtr Inc Instl (DRIHX) is an actively managed Allocation Target-Date 2040 fund. Dimensional Fund Advisors launched the fund in 2015.

The investment seeks to provide total return consistent with the Portfolio's current asset allocation. To achieve its investment objective, the Portfolio allocates its assets to other mutual funds managed by the Advisor according to an asset allocation strategy designed for investors planning to retire in or within a few years of 2040 and are planning to withdraw the value of the investment in the Portfolio over many years after the target date. Over time, the Portfolio's allocation to the underlying funds is expected to change based on an asset allocation strategy that generally becomes more conservative until reaching the "landing point".

About Dimensional 2040 Target Dt Rtr Inc Instl (DRIHX)

There are 6 members of the management team with an average tenure of 9.81 years: Jed Fogdall (2015), Allen Pu (2015), David Plecha (2015), Mary Phillips (2017), Ashish Bhagwanjee (2020), Joseph Kolerich (2015). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg Global Aggregate TR Hdg USD index with a weighting of 100% and S&P Global BMI NR USD index with a weighting of 100%. Dimensional 2040 Target Dt Rtr Inc Instl has 10 securities in its portfolio. The top 10 holdings constitute 99.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Dimensional 2040 Target Dt Rtr Inc Instl is part of the Allocation global asset class and is within the Allocation fund group. Dimensional 2040 Target Dt Rtr Inc Instl has 23.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 43.3%. There is 17.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 34.4% (27.8% domestic bond, 6.5% foreign bond and 0.0% convertible bond). Dimensional 2040 Target Dt Rtr Inc Instl has 5.3% of the portfolio in cash.

Assets Under Management

The fund has $199 million in total assets, which is below the $1 billion average for the Target-Date 2040 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.

DRIHX 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 2040 Target Dt Rtr Inc Instl expense ratio is low compared to funds in the Target-Date 2040 category. Dimensional 2040 Target Dt Rtr Inc Instl has an expense ratio of 0.18%, which is 73% lower than its category average, making the fund expense ratio grade a A. 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 2040 Target Dt Rtr Inc Instl has a portfolio turnover rate of 13%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2040 category.

Recently, in the month of July 2026, Dimensional 2040 Target Dt Rtr Inc Instl returned -1.4%, which earned it a grade of F, as the Target-Date 2040 category had an average return of -0.8%. 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 funds in that category.

Dimensional 2040 Target Dt Rtr Inc Instl has a trailing yield of 3.02%, which is above the 1.91% category average. The fund normally distributes its income quarterly 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 2040 Target Dt Rtr Inc Instl Grades

Year to date, the fund has returned 6.1%, 2.6 percentage points worse than the category, which translates into a grade of F. The fund has returned 13.3% over the past year (grade of F), 11.5% over the past three years (grade of F) and 6.5% per year over the past five years (grade of F) and 9.2% per year over the past 10 years (grade of F).

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