Outstanding Investment Performance
Across time, markets and regions, Dimensional’s investment strategies have delivered outstanding investment performance relative to both their mutual fund competitors and to relevant market benchmarks. To view performance for DFA’s individual funds, please visit Dimensional’s public site at www.dfaus.com and click on “Strategies.”
Rigorous, Time-Tested Investment Strategies
Dimensional’s investment strategies rest on a foundation of rigorous study of markets for more than 30 years. The firm’s research shows that smaller and lower-priced value stocks have higher risks and greater expected returns than larger and higher-priced growth stocks. Dimensional takes advantage of this phenomenon by “tilting” its portfolios toward market segments that offer higher expected returns. To see a graph of how the value and small-cap effects are persistent and pervasive in both U.S. and international markets, please click here.
Systematic Risk Management
Dimensional strategies are structured to reduce risks that needlessly impair investment performance while capturing the higher expected returns associated with smaller and value-priced equities. Broad diversification within each Dimensional fund helps to mitigate avoidable risks such as holding too few securities or betting heavily on specific industries or regions. To learn more, click here.
Patient, Flexible Trading that Adds Value
Dimensional focuses on efficient trading. The firm has developed its trading infrastructure over more than three decades, giving it a formidable presence in global financial markets. Because Dimensional portfolios are not slaves to arbitrary commercial benchmarks, the firm is positioned trade its holdings opportunistically from a position of negotiating strength. Because of the firm’s significant presence—particularly in liquidity-constrained small-cap markets—Dimensional acts as a provider of liquidity to more eager traders in the marketplace. This liquidity can be very expensive for traders on the other side of Dimensional’s trades.
Very Low Costs
Dimensional’s funds have very low expense ratios—much lower than the industry average. But low fees are only the beginning of how Dimensional minds costs on behalf of its investors. For more, click here.