DFAC vs MODL

DFACADimensional US Core Equity 2 ETF

MODLAVictoryShares WestEnd U.S. Sector 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.

MODL Most active US equity funds argue about stocks. MODL argues about sectors: WestEnd's macro team owns four to six economic sectors at a time, names the ones it won't touch, and caps any single sector at 35% at purchase.

Stated mandate

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

MODL The Fund seeks long-term capital appreciation.

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.

• MODL The rules are spelled out: four to six economic sectors at any given time, none above 35% of net assets at the time of purchase. You know the concentration ceiling before you own it.vcm.com
• The distinctive move is the avoidance list. WestEnd names the sectors it sees facing the biggest headwinds and simply doesn't hold them, rather than owning a little of everything.vcm.com
• 0.49% a year for an actively rotated sector strategy, below the 0.65% typical of active US equity funds. Cheap is not the usual adjective for macro-driven allocation.
• A billion-dollar-plus fund that distributes monthly, and it sits in the upper tier of a crowded active US equity field on our review.

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.

• MODL Sector calls are the entire engine. Concentrating in a handful of sectors can mean sharper swings than a broadly diversified US portfolio, in either direction.vcm.com
• Cheap for active, not cheap outright: strong peers like DFAU (0.12%) and AVLC (0.15%) deliver broad US equity for a fraction of the fee.
• Launched in 2022, so the ETF's own live record is short next to the multi-decade histories of the index funds it competes with.

Full DFAC profile⁠

Full MODL profile⁠