DFAC vs ZECP

DFACADimensional US Core Equity 2 ETF

ZECPBZacks Earnings Consistent Portfolio 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.

ZECP Zacks made its name on earnings estimates. Its first ETF, launched 2021, turns that lens inward: screen the largest 750 US stocks for the steadiest earnings, hold 50 to 120, charge 0.55% with no waiver.

Stated mandate

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

ZECP The Fund seeks long-term total returns while minimizing capital loss.

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.

• ZECP The screen is literal: 15 years of EPS variability plus two years of forecast variability. Least wobbly earnings advance, then a manager vets filings, profitability and valuation.sec.gov
• 0.55% is below the median for actively managed US equity funds, and it is the real number: gross and net match, with no waiver due to roll off.
• A compact book of roughly 60 names with a defensive, low-volatility build, drawn from a mandate that pairs the quant screen with human review.sec.gov
• On our overall review it lands in the upper quartile of a large active US equity peer group, with risk behavior that holds up well against those rivals.

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.

• ZECP Active costs more. DFAU charges 0.12% and AVLC 0.15% for broad US equity, so the earnings screen has to justify the gap.
• Steady earnings is not steady prices. The objective is long-term total return while minimizing capital loss, which sets no floor under a drawdown.
• A few hundred million in assets and light daily volume mean the spread can be a live cost, and distributions arrive only once or twice a year.

Full DFAC profile⁠

Full ZECP profile⁠