What Is DFAX? Dimensional World ex U.S. Core Equity 2 ETF
Last updated September 2026
Short answer
DFAX is Dimensional World ex U.S. Core Equity 2 ETF, an ETF that tracks Actively managed, no tracked index at a 0.28% expense ratio. DFAX covers developed and emerging markets outside the US in one systematic portfolio. It is exceptionally flat: the largest listed position is Taiwan Semiconductor's local line at 1.7%, and the tenth is Nestle at 0.4%. Taiwan Semiconductor also appears as a US-listed ADR at 1.2%, so the company is really about 2.9% of the fund and its single largest holding by a wide margin. Sectors are spread across technology at 20%, financials at 19%, industrials at 17% and materials at 10%. The fee is 0.28%, assets are $11.9B and the yield is 2.34%.
DFAX is issued by Dimensional Fund Advisors and tracks Actively managed, no tracked index. It charges a 0.28% expense ratio, holds approximately $11.9B in assets under management, yields about 2.34%, and launched in 2008.
Reading the holdings table correctly
Approximate weights as of August 2026; refresh quarterly from Dimensional Fund Advisors's fund page. Each ticker links to its individual stock guide in Walnut.
| Rank | Ticker | Company | % of DFAX | |
|---|---|---|---|---|
| 1 | Taiwan Semiconductor Manufacturing Co Ltd | 1.7% | ||
| 2 | Samsung Electronics Co Ltd | 1.6% | ||
| 3 | TSM | Taiwan Semiconductor Manufacturing Co Ltd ADR | 1.2% | |
| 4 | SK Hynix Inc | 1.2% | ||
| 5 | ASML | ASML Holding NV ADR | 0.8% | |
| 6 | NVS | Novartis AG ADR | 0.7% | |
| 7 | TotalEnergies SE | 0.5% | ||
| 8 | Fujikura Ltd | 0.5% | ||
| 9 | Tencent Holdings Ltd | 0.4% | ||
| 10 | Nestle SA | 0.4% |
Two entries in the top ten refer to the same company. Taiwan Semiconductor appears once as its Taiwan-listed shares at 1.7% and once as its US-listed depositary receipt at 1.2%. Funds hold both when different accounts, currencies or settlement requirements make one line more practical than the other. The correct reading is a single 2.9% position, not two mid-sized ones, and it makes Taiwan Semiconductor nearly twice the size of the next holding.
The rest of the list is genuinely flat. Samsung Electronics at 1.6%, SK Hynix at 1.2%, ASML at 0.8%, Novartis at 0.7%, TotalEnergies at 0.5%, Fujikura at 0.5%, Tencent at 0.4% and Nestle at 0.4%. Adding the ten together, including both Taiwan Semiconductor lines, gets to roughly 9% of the fund. Very few equity funds of this size have so little riding on their largest names.
One consequence: the semiconductor supply chain still shows up clearly. Taiwan Semiconductor, Samsung, SK Hynix, ASML and Fujikura together account for a visible share of the top ten even in a portfolio designed to be broad. That is what the non-US market looks like at the top rather than a choice the fund made.
Developed and emerging in one wrapper
Most international allocations are built from two funds, one for developed markets and one for emerging. DFAX combines them. Nestle, Novartis and TotalEnergies sit in the same list as Samsung, SK Hynix and Tencent. That is simpler to hold and harder to control: you cannot dial emerging market exposure up or down without replacing the whole position.
The sector profile follows from that breadth. Financials at 19%, industrials at 17% and materials at 10% together outweigh technology at 20%, which is close to the reverse of the US market's shape. Anyone adding this to a US-heavy portfolio is buying different sector exposure, not just different geography, and that is usually the more important part of the diversification.
The name includes Core Equity 2, which refers to the degree of tilt within Dimensional's range rather than to a second version of a fund. The higher number indicates a stronger emphasis on smaller and cheaper companies than the plain core portfolio, applied continuously rather than through exclusions.
Cost, currency and the inception date
At 0.28% the fund is well above the cheapest broad international index ETFs and well below discretionary international management. International investing carries higher trading and custody costs than domestic, so the gap between passive and systematic pricing is narrower here than in US equity.
There is no currency hedge. Returns to a US-based holder include the effect of the dollar moving against the yen, euro, franc, won and Taiwan dollar, among others. Over long periods that effect has tended to wash out; over any particular year it can dominate. That is a feature of unhedged international equity generally rather than something specific to this fund.
The 2008 inception date comes from the fund's history before it took ETF form. Dimensional converted several existing mutual funds into ETFs in 2021, carrying their track records across. It means the strategy has a longer record than most ETFs of its type, and also that early performance was produced in a different wrapper with different costs and trading mechanics.
How do I invest in DFAX?
There are three common ways to get DFAX exposure. Buy shares (or fractional shares) of DFAX directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so DFAX sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. DFAX trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is DFAX a good buy?
Whether DFAX is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Actively managed, no tracked index, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is DFAX a buy?
The bottom line on DFAX
DFAX gives you Actively managed, no tracked index exposure in one ticker at a 0.28% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on DFAX
Whether DFAX is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is DFAX a buy?
DFAX yields 2.34% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see DFAX dividend: yield and schedule.
New to funds like DFAX? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how DFAX fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in DFAX with AI
Connect the broker you already use and ask Walnut's AI how DFAX fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
Why does Taiwan Semiconductor appear twice?
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The fund holds both the Taiwan-listed shares at 1.7% and the US-listed depositary receipt at 1.2%. They are separate securities that represent the same company, and funds hold both for practical reasons around currency, settlement and liquidity. Combined, Taiwan Semiconductor is roughly 2.9% of DFAX, making it the largest holding by a clear margin rather than a pair of similar-sized positions.
Does DFAX include emerging markets?
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Yes. It is a world ex-US fund, so developed and emerging markets sit in the same portfolio. Samsung Electronics, SK Hynix, Taiwan Semiconductor and Tencent appear alongside Nestle, Novartis and TotalEnergies. That makes it a single-holding solution for international equity, and it removes the ability to adjust emerging market weight independently of developed markets.
What does Core Equity 2 mean?
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It denotes the strength of the tilt within Dimensional's range, not a sequel product. The higher number indicates a greater emphasis on smaller and lower-priced companies than the standard core portfolio, achieved by adjusting weights across a broad universe rather than by excluding companies. The result is a portfolio that still holds the large familiar names, just at reduced weights.
Why is the largest holding under 3%?
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Because the fund holds a very wide universe and deliberately spreads weight toward smaller and cheaper companies. The ten largest positions together come to roughly 9% of assets, including both Taiwan Semiconductor lines. Compared with a cap-weighted international index, where the top names carry more, single-company risk here is unusually low and index-level factors drive returns.
Is DFAX currency hedged?
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No. Holdings are denominated in local currencies and a US-based holder absorbs the effect of dollar moves. When the dollar strengthens, international returns are reduced in dollar terms; when it weakens, they are amplified. Over long horizons the effect has tended to be less important than the underlying equity returns, but it can be the dominant factor in any single year.
How does DFAX differ from a market-cap international index fund?
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Weighting method. A cap-weighted fund holds companies in proportion to their market value; DFAX shifts weight toward smaller, cheaper and more profitable companies across the same universe. The visible result is a much flatter top ten and heavier financials, industrials and materials exposure at 19%, 17% and 10% respectively, with technology at 20% rather than dominating.
Why does the inception date say 2008?
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The strategy existed as a mutual fund before it became an ETF. Dimensional converted a group of its funds into ETFs in 2021, and the record carries over. So the strategy has a longer history than the ETF wrapper does, but the earliest years were produced under different costs, trading arrangements and tax mechanics than apply to the ETF today.
Who is DFAX a poor fit for?
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Anyone who wants to control developed and emerging weights separately, since they are bundled. Anyone seeking the cheapest possible international exposure, which is available below 0.28%. And anyone who wants their international fund to track the familiar headline index, because the deliberate tilt toward smaller and cheaper companies guarantees periods of noticeable divergence.
What is DFAX's expense ratio?
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DFAX has an expense ratio of 0.28% per year as of August 2026, charged by Dimensional Fund Advisors and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $28 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track Actively managed, no tracked index before you choose.
How do I compare DFAX to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. DFAX's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against Dimensional Fund Advisors's fund page or your broker before investing.