DFAC vs MSTQ

DFACADimensional US Core Equity 2 ETF

MSTQFLHA Market State Tactical Q 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.

MSTQ A Nasdaq-100 ride with a volatility seatbelt: MSTQ holds Nasdaq-100 exposure in calm markets, then adds long VIX positions when the VIX futures curve signals stress. Rules-based, and running live since 2022.

Stated mandate

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

MSTQ The Fund seeks long-term outperformance relative to the U.S. large-capitalization equity market.

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.

• MSTQ In calm markets it rides the Nasdaq-100 via an index fund or Nasdaq-100 futures, generally 80% to 120% exposure. When volatility stress signals fire, it buys long VIX exposure.lhafunds.comlittleharboradvisors.com
• The trigger is the shape of the volatility market itself: 30-day versus 90-day implied vol plus VIX futures, rather than a manager's gut call on when to duck.sec.gov
• Runs on a signal licensed exclusively from Thompson Capital, the shop that built it, and has traded in public markets since 2022. One ticker instead of a do-it-yourself options overlay.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.

• MSTQ At 1.55% with no fee waiver, it sits above the typical active US large-cap fee, and index-style peers such as DFAU (0.12%) and AVLC (0.15%) cost a sliver of that.
• Hedging is not free: when the signal turns defensive and stocks keep climbing, the long VIX leg drags while Nasdaq-100 exposure is dialed back.lhafunds.comsec.gov
• Small and thinly traded, so the spread is part of the cost of getting in and out, not just the expense ratio.

Full DFAC profile⁠

Full MSTQ profile⁠