Mutual funds from
Dimensional Fund Advisors ("DFA") tend
to be attractive for the following reasons:
As of 2023,
eight of the ten members of the DFA funds’ Board of Directors are
Finance/Economics professors at major universities.
DFA's long-time Director of Research was
Professor Eugene Fama, of the University of Chicago (he is also on DFA's Board
of Directors). Dr. Fama is generally credited with developing the
Efficient Market Hypothesis (in 1965) and co-developing the Three Factor Model
for predicting stock returns (in 1992). For more information on Dr.
DFA's funds are
They don't try to "pick stocks" which will do better than others.
Instead they design their funds in order to expose investors to key risk
factors (which have been shown to be associated with better long-term
performance). Stocks are picked in a mechanical fashion in order to
meet the pre-ordained risk factor goals of each fund.
DFA's value stock mutual funds
invest in extremely "valuey" stocks, which
research shows tends to increase their long-term returns.
DFA funds have relatively low
For more information on DFA, see
the REALLY smart money INVESTS: Nobel Prize winners entrust their nest eggs
to DFA, where investing is a science, not a spectator sport," an
excellent article from Fortune
magazine in 1998.
Porn' Panned by DFA Funds Preaching Fama's Gospel," an article
from Bloomberg.com in 2007.
"The Dimensions of a
Pioneering Strategy," an article from The Wall Street Journal in 2006.
Index Insurgents," an article from Forbes in 2006.
the Monkey," an article from Barron's in 2006.
'Passive' Course Pays Off," an article from the Los Angeles
Times in 2005.|
their own way," an article from Financial Advisor magazine
a Market's Measure," an article
from Mutual Funds magazine in 2001.
Best Fund Family You've Never Heard of — and Why It Doesn't Want Your Money,"
an article from TheStreet.com in 2002.
Trust: With a host of noted academics minding the store, Dimensional Fund
Advisors has attracted a loyal following among fee-only advisors", an
article from Bloomberg Wealth Manager in 2002.
funds hard to buy, easy to own," an article in CNBC Money
Central in 2002.
Dagen: What's a Good Substitute for the Exclusive DFA Funds," an article
from TheStreet.com in 1999.
Vanguard: A Comparison, which compares DFA funds to Vanguard funds in
each of several asset classes and lists our preferences.
brochure for individual investors
(takes a while to load).
DFA primarily offers its
funds to large institutional investors (e.g., the pension funds of large
corporations). Unfortunately, DFA does not presently make its (open-end) funds
available to individual investors except through selected fee-only financial
advisors like Altruist. DFAs ETFs are open to the general public.
In order to invest in DFA
funds, Altruist clients must enroll in the
Altruist receives no commissions on DFA funds or any other funds purchased
through its services. Altruist receives no compensation from DFA and is
not under any contractual agreement with DFA.
This web page contains the current opinions of Eric E. Haas at the time it is
written—and such opinions are subject to change
without notice. This web page is intended to serve two purposes:
|To educate the public; and|
|To provide disclosure of Mr. Haas' opinions to prospective clients.
We believe that prospective clients are well-served by being made aware of
what they are buying—and what they are buying is advice
that is based on these opinions.|
We believe the information provided here to be useful and accurate at the time
it is written.
Information contained herein has been obtained from sources believed to be
reliable, but is not guaranteed.
No investor should invest solely on the basis of information listed here.
Before investing, it is important to consult each prospective investment's
prospectus and consider both its risk/return characteristics and its effect on
your overall portfolio.
This information is not intended to be a
substitute for specific individualized tax, legal, or investment planning
advice. Where specific advice is necessary or appropriate, Altruist
recommends consultation with a qualified tax adviser, CPA, financial planner, or
investment adviser. If you would like to discuss the rationale or support
for any particular idea expressed on this web page, feel free to