DFAC vs LCDS

DFACADimensional US Core Equity 2 ETF

LCDSBJPMorgan Fundamental Data Science Large Core 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.

LCDS J.P. Morgan aims its human stock analysts at a data-science engine and builds a roughly 110-stock alternative to the S&P 500 from what comes out. Active large-cap core, priced at 0.30%, well under the usual active tab.

Stated mandate

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

LCDS The fund seeks long-term capital appreciation by investing primarily in equity securities of large, established companies. Its approach combines fundamental research, data insights, and risk management to assess financial prospects and relative valuation.

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.

• LCDS 0.30% a year, under half the 0.65% median for active US equity funds and cheaper than most active funds run against the S&P 500 (HELO 0.50%, JPEF 0.44%, TSPA 0.34%).
• Roughly 110 stocks instead of 500: concentrated enough for analyst picks to register, still recognizably large-cap core.
• The method is spelled out in the fund's own documents: fundamental research, data insights and risk management applied to large, established companies.jpmorgan.com
• Sits in the upper tier of the active US equity funds we cover, helped by a cost structure closer to index products than to stockpickers.

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.

• LCDS Thinly traded with a small asset base, so spreads tend to be wider than at the giant index funds it competes with.
• Launched in August 2024, so there is not yet a long record covering different market environments.
• The mandate is long-term capital appreciation, not income; distributions arrive quarterly.

Full DFAC profile⁠

Full LCDS profile⁠