DFAC vs RHRX

DFACADimensional US Core Equity 2 ETF

RHRXDAdaptive Tactical 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.

RHRX A fund of ETFs with a market-timing switch: an S&P 500 core that can be hedged with options, plus permission to rotate into Treasury bond ETFs, cash, or inverse ETFs when its trend model turns negative.

Stated mandate

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

RHRX The Fund seeks 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.

• RHRX Unusually flexible mandate for an equity fund: the prospectus allows hedging S&P 500 positions with puts and calls and moving into treasury bond ETFs, cash, or inverse ETFs in downtrends.sec.gov
• The signal set is disclosed rather than vague: price momentum, volatility, and comparative indicators versus certain indices drive when the portfolio turns defensive.sec.gov
• Exposure arrives through unaffiliated ETFs whose holdings are generally S&P 500 common stocks, so the underlying is familiar large-cap equity, not exotic single names.sec.gov
• Running since 2021 inside a 1940 Act ETF wrapper, with daily holdings disclosure and the same rules that govern plain index funds.

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.

• RHRX Costs 1.38% a year, more than double the 0.65% median for active US equity funds and many times cheap core rivals like DFAU (0.12%) or AVLC (0.15%).
• Small and thinly traded, which typically means wider bid/ask spreads and more price impact on larger orders than with headline-size funds.
• Defensive mode can mean heavy cash or leveraged and inverse ETFs, which reset daily; a trend model that turns early or late shows up directly in results.sec.gov

Full DFAC profile⁠

Full RHRX profile⁠