Dimensional Fund Advisors 13F Portfolio

The biggest dollar add is Amazon: up 7.6% in shares, lifting the stake to $10.0B and 1.81% of the book. That increase, combined with fresh capital into Microsoft and Meta, is a clear statement that Dimensional wants more exposure to the hyperscaler-plus-ad stack that monetizes AI at scale, not just the chips that train it.

On the software and platform side:

• Microsoft is up 4.4% in shares, with the position now worth $11.4B, signaling confidence that its AI pricing power is durable.
• Meta’s holding jumps 8.2%, pushing value to $6.36B, a strong endorsement of its ad monetization and AI-driven engagement.
• Apple, already a giant at 3.12% of the book, still gets a 1.6% share bump, indicating they see more upside despite a 313.1% gain versus cost.

The fund also leans into industrial and defensive operators tied to long-cycle demand. GE Aerospace sees a striking 26.1% share increase, adding about $303.9M in exposure, an explicit call on aero demand and pricing power. On the steady-earnings side, Procter & Gamble is boosted 15.1% in shares and Merck 13.1%, suggesting a preference for oligopolistic consumer and pharma names that can compound through different macro regimes.

Financials aren’t bystanders either. JPMorgan gets a 2.4% share increase, while Bank of America and Wells Fargo also tick higher, implying a view that well-capitalized banks with improving rate visibility are now underappreciated cash-flow machines rather than macro landmines.

On the sell side, the pattern is sharp: use the highest‑beta AI and the fattest winners as cash registers. AMD is the standout trim: shares are cut by 23.4%, taking an estimated $700.1M off the table despite the position still sitting almost 394.9% above cost. That is classic risk management in a name that has become the poster child for AI enthusiasm.

Within semis and tools more broadly:

• Micron is reduced by 2.8% in shares even with an eye‑watering 1,855.4% gain versus average buy, signaling skepticism about how long memory pricing can stay supernormal.
• Lam Research and Applied Materials are cut 5.6% and 5.7% in shares respectively, even though both show multi‑hundred‑percent gains; AI capex is still a theme, but not a place to be greedy.
• Alphabet’s GOOGL and GOOG lines are trimmed by 2.6% and 4.1% in shares, turning a 374.5–413.3% gain into liquidity to fund other platform bets.

Outside pure tech, Dimensional quietly pares back what have become mature, lower‑growth defensives. UnitedHealth is reduced 6.4% in shares, Johnson & Johnson 2.8%, and integrated oils Exxon and Chevron both see small share reductions. None of these are liquidation moves; they are measured trims in names with solid but slowing narratives, freeing capital for areas where the team sees a more favorable mix of growth, valuation, and balance sheet strength.

Despite all the intra‑sector trading, the sector bars barely budge at first glance: technology nudges down only from 56.0% to 55.8% of the disclosed book. But under that surface, the mix is changing from AI cyclicals and tools toward mega‑platforms, diversified chip giants, and infrastructure players like Nvidia, Broadcom, Intel, Texas Instruments, and ASML, which all see share or value increases.

Consumer exposure is where a quiet but important shift happens. Consumer discretionary rises from 9.14% to 9.63%, driven by adds to Amazon, Home Depot, Procter & Gamble, and Walmart, while Costco is only slightly trimmed. That’s a clear preference for scaled retailers and brand power over more speculative consumer stories.

Other sectors mostly fine‑tune. Finance inches up to 7.26% with JPMorgan, Goldman Sachs, Bank of America, and Wells Fargo all added at the margin. Real-estate‑linked exposure (Visa, Mastercard, and REITs Welltower and Prologis in the data schema, though economically payments and REITs) edges higher, emphasizing transaction toll booths and hard-asset income streams. Energy slips modestly from 4.50% to 4.42% and telecommunications from 2.60% to 2.43% as integrated oils and Cisco shoulder some of the funding burden.

Health care and basic materials stay roughly flat in headline weights, but the internal rotation — more Eli Lilly and Merck, less UnitedHealth and J&J — reflects a tilt toward innovation-led growth and away from mature, reimbursement‑sensitive franchises.

Put together, this 13F says Dimensional is not backing away from AI; it is re‑underwriting who benefits and on what terms. The fund keeps Nvidia, Microsoft, Apple, Amazon, Meta, and Broadcom as core, growing positions while trimming the more cyclical, sentiment‑driven edges of the trade in AMD, Micron, Lam Research, and Applied Materials.

At the same time, it is slowly upgrading the portfolio’s resilience. Adds to high‑quality banks, resilient consumer franchises, and select health-care innovators signal a desire for businesses that can compound through both AI booms and inevitable air pockets. Energy majors, legacy pharmas, and some telecom and hardware incumbents are increasingly treated as mature cash sources rather than engines of future outperformance.

For observers, the key takeaway is that this is an optimization quarter, not a wholesale style change. A 17.1% top‑10 concentration on a $551.8B base underscores the systematic, diversified nature of the book, but the tilts are anything but random. Expect Dimensional, if this pattern holds, to keep using spikes in AI euphoria and other cyclical pockets to quietly reallocate into platforms, toll booths, and branded cash generators that can defend earnings power even if multiples compress from here.