AVIE vs DFAC

AVIEAAvantis Inflation Focused Equity ETF

DFACADimensional US Core Equity 2 ETF

In short

AVIE Most inflation plays reach for commodities or TIPS. Avantis reaches for stocks: roughly 400 US companies, screened on profitability and value, picked for their expected ability to benefit when inflation rises.

DFAC Dimensional's whole-market workhorse: roughly 2,600 US stocks in one ticker, run by managers who weigh federal tax consequences before they trade, at a fee closer to index funds than to active ones.

Stated mandate

AVIE The fund seeks long-term capital appreciation through primarily U.S. equity investments selected for their expected ability to benefit when inflation rises or is expected to rise.

DFAC The fund seeks long-term capital appreciation while considering federal income-tax implications in its investment decisions.

Why people hold it

• AVIE Costs 0.25% a year while the typical active US equity fund in its peer group runs about 0.65%. Cheap for an actively managed, purpose-built portfolio.
• The inflation exposure comes from operating businesses, not futures contracts: a primarily US equity portfolio of roughly 400 names.
• Avantis keeps its house discipline on top of the theme, tilting toward companies with higher profitability at lower prices rather than buying the inflation story at any valuation.
• Sits in the top quartile of a 234-fund active US equity cohort on our review, and pays quarterly.

• DFAC 0.17% a year for an actively run fund, well under the median fee among active US equity ETFs.
• About 2,600 US stocks under one ticker, so it holds the market broadly rather than a narrow slice of it.
• Federal income-tax implications sit inside the stated objective, not in a footnote, so they factor into what managers buy and sell.
• A multi-billion-dollar fund with a track record running back to 2007 and one of the strongest implementations in its peer group.

Worth knowing

• AVIE Small asset base and thin trading. Spreads can run wider than on big index funds, and that matters more on large or hurried orders.
• A portfolio built around inflation sensitivity is not a broad-market portfolio. Expect sector weights and results that wander from the S&P 500 in both directions.
• Active, with no published index to check it against, and a track record that only starts in 2022. Avantis' plain large-cap fund AVLC charges 0.15% if you'd rather skip the theme.

• DFAC Actively managed, so there's no published index to check it against. Holdings and tilts shift at the managers' discretion.
• Dimensional's own DFAU runs a US core equity mandate for 0.12%, a slightly lighter fee for a similar shelf.
• All stocks, all US: the mandate is capital appreciation from equities, so it takes the market's full swings, and cash arrives quarterly.

Full AVIE profile⁠

Full DFAC profile⁠