Dimensional’s New ETFs Signal Trouble for Advisors

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Dimensional Fund Advisors recently announced an expansion of its ETF offerings. It will add seven ETFs, including an Ultrashort Fixed Income ETF (NYSE Arca: DUSB) and a World Equity ETF (NYSE Arca: DFAW).

This development is good news for investors but raises issues for some investment advisors.

Here’s why.

A massive shift

As a financial advisor (more than two decades ago), I embraced Dimensional’s approach to investing. My firm offered its clients only Dimensional funds. Our key differentiator was our ability to give our clients access to these funds.

Now, anyone can buy Dimensional’s ETFs, with or without an advisor.

This development is great for investors, who can benefit from owning funds from one of America’s foremost fund families without going through a gatekeeper.