This is an active ETF that invests across all market-cap ranges of developed markets outside the US, adding weight to value and profitability factors. It holds a broad range of stocks while also enhancing small-cap exposure.

It suits long-term investors who want to diversify across developed-market stocks outside the US while also gaining exposure to value and small-cap factors.

It is an ETF managed by Dimensional using an active management approach.

The fund uses an active approach that adds weight to relatively undervalued value stocks and highly profitable stocks among developed-market holdings outside the US. Rather than tracking a specific index, it adjusts factor exposure through a flexible daily process that combines research, portfolio management, and trading, while also enhancing its small-cap weighting.

• Combined exposure to value, profitability, and small-cap factors
• Flexible active management that does not track an index

Assets under management (AUM) stand at $231.5M, and the expense ratio is 0.30% per year.

The fund broadly follows the developed-market trend, but its heavier value and small-cap weighting means relative performance can diverge from growth-led periods. Because it invests outside the US, exchange rates and regional economic differences affect volatility.

Demand to diversify away from US-concentrated portfolios and interest in factor investing underpin fund flows. The intensity of inflows and outflows tends to vary with the global interest rate and currency environment and the developed-market economic cycle.

Developed-market diversification and exposure to value and small-cap factors are its strengths, while active management and volatility from currency and regional differences are points to watch.

FNDF and GSIE, shown in the table, are comparison candidates that also diversify across developed-market stocks outside the US, though they differ in factors and management approach, and their fee levels differ as well. GNR, listed in the same table, concentrates on global natural resources companies, so its diversification scope and sector composition differ significantly. Other options to review include DFIV, a direct substitute from the same Dimensional family that focuses on developed-market value, and low-cost core ETFs such as VEA and IEFA for those seeking broader exposure to the entire non-US market.

Here are the points to review before investing in DXIV. Checking the scope of non-US developed-market exposure, the nature of the value and small-cap factor tilt, and the costs of active management in advance can help you judge whether the fund fits your investment goals.

Periods of weakness in value and small-cap factors, along with currency and regional economic differences in non-US markets, are the main drivers of short-term volatility. Relative performance may lag during growth-led periods.

It is a reasonable choice for long-term investors who want both developed-market diversification outside the US and exposure to value and small-cap factors. If low-cost broad exposure is the priority, core ETFs such as VEA and IEFA may be a better fit, while this ETF may suit those who prioritize value and small-cap factor exposure.