On Friday, Connecticut-based advisory Apella Capital disclosed a buy of approximately $17.2 million in the Dimensional Global ex US Core Fixed Income ETF (DFGX 0.14%), according to a new SEC filing.
What Happened
According to a filing with the Securities and Exchange Commission released on Friday, Apella Capital increased its allocation to the Dimensional Global ex US Core Fixed Income ETF (DFGX 0.14%) by approximately 321,551 shares in the third quarter. The estimated value of the trade, calculated at the average price for the period, was $17.2 million. The position now totals nearly 1.7 million shares worth $91.2 million.
What Else to Know
This buy takes the DFGX position to 2% of Apella Capital’s 13F reportable assets under management.
Top holdings after the filing:
- NYSEMKT:DFAC: $515 million (11.5% of AUM)
- NYSEMKT:DFSD: $194.1 million (4.3% of AUM)
- NYSEMKT:VTI: $151.5 million (3.4% of AUM)
- NYSEMKT:DFIC: $129.9 million (2.9% of AUM)
- NASDAQ:BND: $120.5 million (2.7% of AUM)
As of Monday, DFGX shares were priced at $54.56, up 1.4% over the past
ETF Overview
| Metric | Value |
|---|---|
| AUM | $1.2 billion |
| Price (as of Monday) | $54.56 |
| Expense Ratio | 0.2% |
| 1-year total return | 4.4% |
ETF Snapshot
- DFGX's investment strategy focuses on providing broad exposure to foreign debt securities, including obligations issued or guaranteed by foreign governments, agencies, corporates, and supranational organizations.
- The portfolio is diversified across global ex-US fixed income instruments, encompassing government and corporate bonds, bank obligations, commercial paper, and repurchase agreements.
- The ETF offers investors access to international fixed income markets and is listed on NASDAQ.
Dimensional Global ex US Core Fixed Income ETF is designed to deliver diversified exposure to the international fixed income universe outside the United States. It invests in a broad array of foreign government and corporate debt securities. It has an annualized dividend yield of 3.22%.
Foolish Take
Apella Capital appears to be swapping breadth for precision in its bond allocation. As it sold nearly $11 million of its stake in the Vanguard Total International Bond ETF (BNDX), the firm bought $17.2 million worth of Dimensional Global ex U.S. Core Fixed Income ETF (DFGX)—seemingly favoring Dimensional’s active, factor-based approach over Vanguard’s more index-tracking style.
The DFGX purchase brought Apella’s holdings to nearly 1.7 million shares valued at $91.2 million, or roughly 2% of its $4.5 billion in reportable assets. Managed by Dimensional Fund Advisors, DFGX invests broadly in investment-grade debt issued by foreign governments and corporations, providing global diversification while mitigating exposure to U.S. duration risk. Top holdings include debt from Alphabet (2.4% weight), Japan, and France.
For long-term investors, Apella’s move underscores confidence in the resilience of foreign bond markets and seems to reflect a focus on steady income and currency-hedged stability rather than short-term yield chasing.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a financial institution.
13F Reportable Assets: Securities that investment managers must disclose quarterly to the SEC if they exceed a certain value threshold.
Dividend Yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Annualized Dividend Yield: The yearly rate of income from dividends, based on the most recent payout and current price.
Total Return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Fixed Income: Investments that provide regular interest payments, such as bonds or debt securities.
ETF (Exchange-Traded Fund): A fund that holds a basket of assets and trades on an exchange like a stock.
Allocation: The portion of a portfolio invested in a particular asset, sector, or security.
Supranational Organizations: International institutions, such as the World Bank, that issue debt to fund global projects.
Repurchase Agreements: Short-term loans where securities are sold and later repurchased at a set price and date.
Commercial Paper: Unsecured, short-term debt issued by corporations to finance day-to-day operations.
Trailing the S&P 500: Underperforming the S&P 500 index over a specified time period.
