DFUS
Dimensional U.S. Equity ETF
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I believe Dimensional and presumably Avantis "index" funds wait 1 year before purchasing IPOs. They're kind of un-indexed index funds where they mostly behave like index funds but they rebalance to match the index less often. This is what I heard from that one youtuber at least, and it seems reasonable. DFUS is the one that most index-like, whereas DCOR and DFAC have more and more tilts. I personally use DCOR, which is still pretty index-like but it looks like it under-weights inflated stuff like Tesla, which also makes me feel better.
Dimensional doesn't have a direct analog for VOO/SPY. DFVX is probably the most similar, but it uses a severely trimmed-down (only 300 or so companies) subset of the Russell 1000 instead of the SP500, so it's not really apples to apples. Its company weighting also differs substantially from a true index, with a few big names like Nvidia and Apple, for example, only having a fraction of their market weight in representation. The most index-like Dimensional US ETF would probably be to use DFUS as a stand-in for VTI. If you really want an "active" index that applies some modest filters while still remaining largely true to market cap, maybe look at AVLC from Avantis. It also roughly uses the Russell 1000, but holds 700 or so companies at market weights that feel a lot less like stock picking.
Yep, another good choice is VTV - vanguard value index fund ETF There are others that do similar things, like DFUS
The floats on these IPOs are likely small (\~5%), so your exposure would be small too. Worst case maybe \~0.5% of your portfolio goes into these mega IPOs, which even with a 50% drop would only mean about a \~0.25% hit overall. That said, switching to DFUS isn’t a bad option.
Don’t quote me because I read late in the night but someone mentioned DFUS could possibly be a way.
Get out of any etfs / mutual funds based on the Nasdaq (QQQ, VTI etc). Elon forced a rule change so he could [dump his bags on retail passive investors](https://finance.yahoo.com/news/new-rule-could-fast-track-spacex-ipo-for-nasdaq-index-inclusion-172327734.html). He’s also rolled up a bunch of other BS into SpaceX basically doing the same thing (xAI, Twitter, buying fucking cyber trucks). If you want to stick with Nasdaq without the IPO retail bag holding consider DFUS or something that does add the IPOs with the new rule change. Some other discussion here: https://www.reddit.com/r/investing/comments/1sd0x3g/avoid_fast_track_ipos_while_keeping_broad_passive/?solution=b01a01fb9983307db01a01fb9983307d&js_challenge=1&token=bbbe4bf1c9a2b5160829c4be34da5861b0f0cec01367a79087a4f23d0743f855
just so the numbers are visible: DFUS = 0.32 expense ratio; 10.6x higher than VTI
I second DFUS, that is what I hold for a total US market fund.
Consider switching from VTI to DFUS by Dimensional Funds. One of their principles is to not add IPOs within the first 12 months because there’s empirical research showing IPOs underperform in the initial period. Otherwise DFUS intends to more or less replicate broad US index funds, but with various tweaks that aim to modestly outperform it (such as the waiting period for IPOs). Avantis may have a similar ETF offering, but I’m personally only familiar with Dimensional
I would not touch them with a ten foot pole. Fees are ridiculous, the tax-loss harvesting opportunities dry up over time, and you are stuck with a portfolio of nonsense. This just way over complicates something that should be simple. You can invest in low-cost, low turnover, broadly diversified index funds and use the dividends to pay taxes. I would split it into broad US funds and international -- you can get the foreign tax credit for dividends paid out of international funds -- and leave it alone. If you are interested in tax loss harvesting, you can do that on your own without paying fees. Turn off dividend reinvesting so that you don't run into wash sale problems. Sell at a loss, and take the funds you get from the sale and buy something similar but not identical. Example: your VTI has posted losses. Sell the lots with significant losses and use the proceeds to buy DFUS or AVUS or SCHX. I love Fidelity but they are selling you a product designed to help them more than it will help you IMO. If the market helps out, you could be looking at retirement in 7 - 10 years if 2 million is your goal.
Ayyyy another dimensional user. I’ve got DFAU instead. I think mine just has slightly more of a factor tilt than DFUS, but this type of stuff is also why I’m with them.
Dimensional has funds that do this. I use DFUS which tracks the Russell 3000 total US index, but there is an additional waiting period after a stock gets added to the index before the fund buys in. This is specifically done so you aren't buying IPO stocks while the rest of the funds are rushing into them. They have other that do this for the S&P 500 as well, but I wanted total a US index.
I was looking at the DFUS ETF as an alternative to holding VTI.
I'm strongly contemplating replacing my current VTI holdings with DFUS. At the very least I set my accounts to stop auto-investing in VTI and buy other ETFs that hopefully aren't subjected to the 15 days fast track rule.
The DFUS fund from dimensional tracks pretty closely to a total market fund but delays IPOs to prevent this adverse selection that regular index funds fall victim to.
DFUS is the VTI alternate and DFAW is the VT. Again lol I stated in the long form, the difference is negligible and not worth rebalancing a brokerage account or losing sleep over. If space x and open ai do collapse, markets fucked for a bit
DFUS/DFAX 65/35. Sleep well
I personally do 80/20 DFUS/DFAX as an alternative to VTI/VXUS. I believe DFUS is superior to VTI because it uses academically-informed flexible implementations like filtering out junky small caps and delaying investing in IPOs (there's a YT video by Ben Felix on this). These strategies should allow it to beat VTI in the long run (and it has so far since its 2021 inception). Similarly, I expect DFAX to beat VXUS in the long run. Outside the US, factor tilts have had superior performance to "vanilla" market cap weighting. This combined with the above-mentioned academically-informed flexible implementation should allow it to beat VXUS long term. After months of researching this topic, I came to the conclusion that this combo works best for me because of its simplicity and the fact that I don't have to worry about winning sectors/countries. Plus, there's a satisfaction in owning a part of 12,000+ companies worldwide.
Here are the big ones from Vanguard: Total World (VT), US (VTI), ex-US (VXUS), Developed markets ex-US (VEA), Emerging Markets (VWO). If you want to get really in the weeds, I believe that Dimensional and Avantis are worth the small increase in expense ratios for some small factor tilting, profitability screening, etc, so I incorporate several of their funds. DFUS, DFAW, DFAI, DFAE are Dimentional's equivalents to those Vanguard options I listed
I don't ever hold the same asset in two different accounts (if one of the accounts is a taxable brokerage account). I am too lazy and too paranoid about the IRS to have the possibility of a wash sale out there. If this were my account, I would use a different broad market fund in my Roth IRA, such as VTI, DFUS, SCHK, ITOT, or SPTM.
Stick it all in DFUS or VOO and enjoy being able to retire when you're 65 like people used to.
After being introduced to the “family trusted wealth manager” I gave my life savings to this very respectable firm. They slapped my personal money, my Roth IRA, my wife’s Roth IRA in DFIC, DFUS, DFAC. They suggested to go all in with all accounts in November 2021. Made no money for 2 years, then steadily underperformed the S&P500 when things picked back up in 2023 until 2025 when I fired them. I sold all that crap and put the money back in in April.
Correct - in a Roth there is not a taxable event. Re; DFUS - the spread is only a penny but if you are planning to acquire a significant percentage of the daily volume - you could potentially introduce a slight premium to the I-NAV.
I currently hold VTI as my US index fund in my Roth, and I want to switch it to DFUS. To my understanding, since it's in a Roth, selling the VTI won't trigger a taxable event. Should I have any bid/ask spread concerns over buying a large amount of DFUS all at once? Ex: should I buy the DFUS shares 50 at a time? 100? 300? The 30-day median bid/ask spread on their site is 0.03%, avg share volume 400k, etc. etc. Not sure if this is the right sub, Bogleheads might be better, but I figured this is more of a technical question.
DFAU is more like VTI, DFUS has a stronger tilt.
Thanks. It matches with what I have found so far, apart from DFAU which from what I understand has a very slight filter tilt and DFUS would be the closer equivalent to VTI, is that correct ? I'd already be covering factors for US with a 14% allocation to DFSV
Dividends are just a forced sale that causes tax drag. It’s not extra free income. Especially at your age a solid index fund portfolio will do far better. Just sell when you need money. The loss aversion works to your benefit. Also at your age I’d recommend VTI not VOO. There is a return premium on small cap stocks that will benefit you on a long time horizon. DFUS is another option: it excludes small cap growth stocks, which underperform. But there’s a lot more technical background there to wade through.
Dimensional has ETF versions of their mutual funds. You cna buy DFUS instead of DFUSX.
I love the self-confidence. You should trade crypto or something. The good thing is even you are saying "usually" because you know it's not true across the board, but just for future references, here are 3 examples of actively managed ETFs that are beating their index after fees. JPEF DFUS CGDV What's absolutely hilarious is that bond investing is one area where actively managed funds and ETFs are generally more successful in beating their index than equities.