What is Dimensional world Equity Fund? (How to buy)

                                                       

I first came across Dimensional World Equity Fund as a recommended globally diversified fund that can form the base of a core-satellite portfolio. The fund aims to achieve long-term total return by primarily investing in shares of companies traded in developed and/or emerging markets.

The Fund offers an attractive option for investors who want to gain low-cost diversified and passive exposure to the broad equity market. 

However, investors should note that the Fund has a tilt towards Value, Size and Profitability factors and factors can undergo a prolonged period of underperformance in the short to medium term, despite strong evidence suggesting their long-term outperformance.

In the short term, you may experience underperformance as the following has not prevailed in recent times.

1) Small companies beat large companies over a long period of time.

2) Value stocks beat growth stocks over a long period of time.

3) Profitable companies beat non profitable companies every time.

Investment objective

The investment objective of the Fund is to seek to maximise long-term total return.

Dimensional World Equity Fund review

The fund invests in both developed and emerging markets. There is a higher expense ratio and broader diversification. This makes your investment extremely diversified across many different companies. Dimensional World Equity Fund does not track an index such as MSCI World or S&P 500. 

They have their own investment strategy for stock selection

Inception date	10/8/2015
NAV	$15.28
Net assets	$3.2B
Annual management charge	0.3%
Ongoing charges	0.35%
Companies	12,894
PB ratio	1.81

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Asset allocation

Equity allocation by sector

Equity allocation by country

DEVELOPED

United States58.64%

Japan6.34%

United Kingdom3.74%

Canada3.06%

France2.43%

EMERGING

China3.35%

Taiwan2.38%

India2.02%

Korea1.61%

Brazil0.76%

Equity allocation by companies

Company Name
Weight
• Microsoft Corp
  2.36%
• Apple Inc
  2.30%
• Alphabet Inc
  0.92%
• Exxon Mobil Corp
  0.76%
• Johnson & Johnson
  0.60%
• Meta Platforms Inc
  0.53%
• Chevron Corp
  0.44%
• Amazon.com Inc
  0.43%
• Pfizer Inc
  0.39%
• Procter & Gamble Co/The
  0.39%

Performance

Endowus

 

The most cost effective way to buy the Dimensional World Equity Fund would be through Endowus, by using Endowus Fund Smart. Endows Fund Smart allows you to create your own customised portfolio. 

You can select 1-8 funds in your own customised portfolio and % allocation you wish to have for each fund.

If you want to invest in the Dimensional World Equity Fund, you are able to use Cash only.

You are unable to use your CPF or SRS funds for the investment.

Do note that the fund is accumulating and has a 15% Dividend Withholding Tax.

Advantages of investing in the fund

1. Diversified
2. SGD denominated
3. Low expense ratio (in comparison with other mutual funds)

Summary

If you are looking for a broad and diverse fund to invest in, the Dimensional World Equity Fund is a strong option for you to consider.