State Street to Support Dimensional Fund Advisors’ First-Ever ETF Share Class Rollout for U.S. Mutual Funds
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Key Terms
etf share classfinancial
An ETF share class is a variant of the same exchange-traded fund that carries different features such as fees, tax treatment, dividend handling, or currency denomination — like different editions of the same book that change the cover, bonus material, or language but contain the same core content. Investors care because these differences affect returns, costs, and suitability for tax or account types, so choosing the right share class can change the net outcome even when the underlying investments are identical.
exemptive reliefregulatory
Exemptive relief is a formal permission from a financial regulator that allows a company or fund to be temporarily or permanently excused from following a specific rule or requirement. It matters to investors because it can change how a business operates, affect the timing and cost of transactions, and alter regulatory risk—think of it like a temporary permit that lets a shop operate under different rules while still staying legal.
custodyfinancial
Custody is the safekeeping and management of financial assets, such as stocks or bonds, by a specialized institution on behalf of an investor. It ensures that the assets are securely stored, properly maintained, and accurately accounted for, similar to how a bank safely holds valuables for a customer. This arrangement gives investors confidence that their assets are protected and properly managed, allowing them to focus on their investment goals.
etf basket creationfinancial
ETF basket creation is the process by which authorized traders gather the exact list of stocks or bonds an exchange-traded fund (ETF) wants and exchange them with the fund manager for newly issued ETF shares. This mechanism matters to investors because it keeps the ETF’s market price in line with the value of its underlying holdings, supports liquidity (so you can buy or sell without big price swings), and helps the fund track its target index accurately—think of it as swapping a box of individual groceries for a prepackaged meal so the store can stay stocked and priced correctly.
transfer agencyfinancial
A transfer agency is the service or department that keeps official records of who owns a company’s or fund’s shares and handles changes in ownership, transfers, share issuance, dividend payments and investor communications. Think of it as the ledger-keeper and post office for stock ownership: accurate, timely record-keeping and handling of transactions matters to investors because it ensures they receive dividends, can buy or sell shares, and have their voting and ownership rights recognized without delay or error.
ucits etfregulatory
A UCITS ETF is an exchange-traded fund built to meet European investor-protection rules (UCITS) and traded on stock exchanges like a single share. Think of it as a ready-made, regulated basket of many securities you can buy or sell throughout the day; the UCITS rules add layers of oversight, diversification limits and transparency that reduce some risks. Investors care because it combines easy trading, built-in diversification and strong regulatory safeguards across many markets.
Comprehensive servicing under SEC’s new framework to support first-of-its-kind rollout
BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE: STT) today announced that State Street has been appointed as service provider for Dimensional Fund Advisors’ newly approved ETF share class structure. This is the first-of-its-kind in the U.S. under the U.S. Securities and Exchange Commission’s final exemptive relief, allowing Dimensional to introduce ETF share classes within its actively-managed mutual fund lineup.
Dimensional is the first U.S. asset manager to bring this structure to market, marking a significant milestone in ETF innovation. State Street will provide end-to-end service support, including custody, fund accounting, ETF basket creation, create / redeem order management, ETF settlement, transfer agency and reporting.
"We’re pleased to support Dimensional Fund Advisors as they implement ETF share classes under the SEC’s new framework,” said Joerg Ambrosius, president of Investment Services at State Street. “Our global experience with ETF share classes and our robust operational infrastructure uniquely position us to support Dimensional’s important launch. Dimensional’s prior selection of State Street to support the launch of its UCITS ETF range in Europe reflects the strength of our long-standing global partnership.”
State Street’s proven track record supporting ETFs and mutual funds spans Asia-Pacific, Europe and North America. This global expertise enables consistent, scalable support for Dimensional’s U.S. launch.
“Broader adoption of the share class structure can offer millions of American investors potential benefits of increased tax efficiency and cost savings from economies of scale,” said Gerard O'Reilly, Co-CEO and Co-CIO of Dimensional Fund Advisors. “State Street’s readiness and ETF servicing expertise have been instrumental in preparing for this launch.”
For more than 30 years, State Street has been at the forefront of ETF innovation, helping shape what is now a global $20.6 trillion ETF marketplace. Today, State Street remains the world’s largest ETF servicer, supporting more than 3,000 ETFs and $8.1. trillion across 15 countries.1 With fully integrated global ETF servicing capabilities, State Street enables clients to efficiently engage with the evolving ETF landscape through its proprietary technology and scalable operating model. From fund launch to ongoing operations, State Street’s solutions are designed to align with industry best practices, regardless of structure, asset class, or investment strategy.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $53.8 trillion in assets under custody and/or administration and $5.7 trillion* in assets under management as of December 31, 2025, State Street operates globally in more than 100 geographic markets and employs approximately 52,000 worldwide.
*Assets under management as of December 31, 2025 includes approximately $173 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated.
