This is a global core ETF that holds a broad range of developed and emerging market stocks outside the United States. Rather than simply replicating an index, it applies a rules-based approach that tilts weights toward value, small-cap and profitability factors.

It suits long-term investors who want non-US global equity exposure in a single holding and prefer factor-based diversification.

It is an actively managed ETF run by Dimensional.

The fund holds developed and emerging market stocks outside the US broadly, while systematically tilting weights toward value, small-cap and high-profitability factors. It is notable for using cash flows at the time of buying and selling to reduce trading costs, and for managing realized gains and losses to improve tax efficiency.

• Rules-based factor management
• Tax-aware trading

Assets under management (AUM) stand at $11.7B, and the expense ratio is 0.28% per year.

Compared with similar ETFs from the same Dimensional family, the key difference is the scope of exposure, which extends to emerging markets.

Non-US global equities are influenced by the value of the dollar and by each country's economic and interest rate cycles, and they tend to move at a different rhythm from the US market. Short-term swings depend on exchange rates and appetite for emerging market risk.

Demand for regional diversification from US-concentrated portfolios continues to sustain interest in non-US core ETFs. During periods of dollar weakness, investor attention has at times shifted toward non-US assets.

Its strengths are non-US global diversification and factor-based management, while currency exposure and the fee that comes with active management are burdens.

DFAI and DFIC shown in the table are non-US core ETFs from the same Dimensional family, and they differ in scope of exposure and factor intensity, while VYMI, VIGI and IDV are non-US ETFs focused on high dividends and dividend growth. If you want broad non-US exposure through simple index tracking, you can consider VXUS, IXUS and ACWX, and if you want to focus only on developed markets, you can also look at EFA.

Here are the points to review before investing in DFAX. It is useful as a core non-US global equity holding, but you should check in advance whether the active management fee, currency fluctuations, volatility from emerging market exposure and the range of regional diversification fit your investment profile.

Currency and emerging market exposure are the main drivers of short-term volatility. Even though these are non-US assets, they can weaken together during periods of global risk aversion, so the possibility of short-term losses should be taken into account.

It is a suitable choice for long-term investors who want to broaden diversification with a core non-US global equity holding. If simple low-cost exposure is the priority, VXUS or IXUS fits better, and if you prefer factor-based management, DFAX is the better fit.