DFAC vs MSMR

DFACADimensional US Core Equity 2 ETF

MSMRDMcElhenny Sheffield Managed Risk 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.

MSMR A tactical fund that is not built to stay fully invested: two rules-based sleeves, trend following and sector momentum, split roughly 50/50 and expressed through other ETFs. The 1.06% fee sits above the category norm, with no waiver in place.

Stated mandate

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

MSMR The Fund seeks capital appreciation while managing downside risk.

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.

• MSMR Two rules-based sleeves run side by side at roughly 50/50: one follows U.S. equity uptrends, the other rotates toward the highest-momentum segments of the market.sec.gov
• It holds other ETFs rather than individual stocks, so the tactical calls land at the sector and market level instead of the single-name level.sec.gov
• Running since its 2021 launch on the same two-strategy blend, with a stated goal of capital appreciation while managing downside risk.prnewswire.com
• Distributions arrive on a quarterly schedule.

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.

• MSMR At 1.06%, with no fee waiver, it costs above the category median and far more than cheap core peers like DFAU (0.12%) and AVLC (0.15%).
• Trend and momentum rules react to prices, so the strategy can step away during weakness and step back after a reversal is already underway.sec.gov
• Thinly traded next to the giants of its category, which is where limit orders and a look at the spread earn their keep.

Full DFAC profile⁠

Full MSMR profile⁠