DFAC vs KOOL

DFACADimensional US Core Equity 2 ETF

KOOLDNorth Shore Equity Rotation ETF

In short

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.

KOOL A sector-rotation fund that published its playbook: the prospectus names four business-cycle stages and the sectors KOOL tilts toward in each, from staples and utilities in a recession to tech and financials in an expansion.

Stated mandate

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

KOOL The Fund seeks to outperform the S&P 500 Index through investments across different equity-market sectors.

Why people hold it

• 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.

• KOOL The playbook is in writing. The prospectus names four cycle stages (recession, recovery, expansion, slowdown) and the sectors the fund leans into in each.sec.gov
• Views get expressed through both single stocks and sector ETFs, so one trade can shift a whole sleeve. The book stays concentrated, at roughly 40 positions.sec.gov
• The adviser reviews GDP, employment, consumer spending and inflation at least monthly, so the stage call runs on a set cadence rather than on headlines.sec.gov
• The mandate is global, not U.S.-only, so the rotation can reach foreign equities as well as domestic ones.sec.gov

Worth knowing

• 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.

• KOOL Pricier than most of the category: 0.93% net of a waiver through July 31, 2027, versus a 1.32% gross rate, while peers like DFAU at 0.12% and AVLC at 0.15% sit far below.
• Thinly traded and non-diversified, so spreads can bite on entry and exit and a handful of names can drive results.sec.gov
• Everything rides on the adviser's read of the cycle, and the prospectus notes the stages can repeat or arrive out of order.sec.gov

Full DFAC profile⁠

Full KOOL profile⁠