We are often asked which mutual funds we recommend in various asset classes.
After applying our stringent selection criteria,
it often comes down to Vanguard and DFA mutual funds.
For more information on The Vanguard Group, see
here.
For more information on Dimensional Fund Advisors (DFA),
see here.
While Vanguard’s funds are among the very best
available (principally due to their extremely low fees), some funds from DFA are, in
some
ways, superior.
The table below compares DFA funds with Vanguard funds in each of several
asset classes. For each asset class, DFA’s fund is listed along with Vanguard’s
fund. Each entry includes the fund name, NASDAQ symbol, and expense ratio.
For each asset class, there is also a brief analysis of the relevant differences
between the two
offerings. Within each asset class, we tried to assess which offering is “better”
– DFA’s or Vanguard’s (or any other fund). We have highlighted the preferred fund in each case by bolding and
italicizing its information.
Note that “better” refers to our expectation of which fund will be a better
holding in the long term. In
making such a determination, we take into account not only expected long-term
performance, but also long-term expected risk/volatility and any trading
restrictions imposed by the funds. For more information on the criteria we
use to judge mutual funds, see here.
Asset Class
|
DFA
|
Vanguard
|
Analysis
|
Money Market |
N/A |
Vanguard Federal Money Market Fund Admiral Shares (VMFXX)
E/R: 0.11% |
DFA does not have an offering in this asset class. |
Short Term US Bonds |
DFA
Short-Term Government Portfolio (DFFGX) E/R: 0.16% |
Vanguard Short-Term Corporate Bond Index Fund Admiral Shares (VSCSX)
E/R: 0.07% |
See our
detailed discussion of the leading options for this asset class
here. |
Short Term Global Bonds |
DFA
Five-Year Global Fixed Income Portfolio (DFGBX)
E/R: 0.20%
or
DFA Short-Term Extended Quality Portfolio (DFEQX)
E/R: 0.18%
or DFA Two-Year Global Fixed Income Portfolio (DFGFX)
E/R: 0.16%
or DFA
Short-Duration Fixed Income ETF (DFSD)
E/R: 0.16% |
N/A |
Vanguard does not have an offering
in this asset class. See our
detailed discussion of the leading options for this asset class
here.
|
Short Term Tax-Exempt Bonds |
DFA Short-Term Municipal Bond Portfolio (DFSMX)
E/R: 0.18% |
Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX)
E/R: 0.12%
|
See our
detailed discussion of the leading options for this asset class
here. |
Inflation-Protected Securities |
DFA Inflation-Protected Securities Portfolio (DIPSX)
E/R: 0.11%
or
DFA Inflation Protected Securities ETF (DFIP)
E/R: 0.11% |
Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX)
E/R: 0.10% |
See our
detailed discussion of the leading options for this asset class
here. |
Balanced Funds |
|
|
See our detailed discussion of the leading options for this asset class
here. |
Large Cap |
DFA Enhanced US Large Company Portfolio (DFELX)
E/R: 0.15% |
Vanguard Large-Cap Index Fund Admiral Shares (VLCAX)
E/R: 0.08% |
See our
detailed discussion of the leading options for this asset class
here. |
Tax-Managed Large Cap |
DFA US Equity ETF (DFUS)
E/R: 0.09% |
Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX)
E/R: 0.11% |
See our detailed discussion of the leading options for this asset class
here.
The DFA fund isn't really a "large-cap" fund — it is an all-market fund. |
Large Cap Value |
DFA U.S. Large Cap Value Portfolio (DFLVX)
E/R: 0.21% |
Vanguard U.S. Value Factor ETF (VFVA)
E/R: 0.13% |
See our detailed discussion of the leading options for this asset class
here. Our first choice here is the
Invesco S&P 500 Value with Momentum ETF (SPVM). It has
an E/R of 0.39%. |
Tax-Managed Large Cap Value |
DFA
US
Marketwide Value ETF (DFUV)
E/R: 0.22% |
Vanguard U.S. Value Factor ETF (VFVA)
E/R: 0.13% |
See our detailed discussion of the leading options for this asset class
here. Our first choice here is the
Invesco S&P 500 Value with Momentum ETF (SPVM). It has
an E/R of 0.39%. |
Large Cap
Momentum |
N/A |
Vanguard U.S. Momentum Factor ETF (VFMO)
E/R: 0.13% |
DFA
does not have an offering
in this asset class. Our first choice here is the
Invesco S&P 500 Momentum Portfolio ETF (SPMO). It has an E/R of 0.15%. |
Tax-Managed Large Cap
Momentum |
N/A |
Vanguard U.S. Momentum Factor ETF (VFMO)
E/R: 0.13% |
DFA
does not have an offering
in this asset class. Our first choice here is the
Invesco S&P 500 Momentum Portfolio ETF (SPMO). It has an E/R of 0.15%. |
Small Cap |
DFA U.S. Microcap Portfolio (DFSCX)
E/R: 0.40% |
Vanguard Small Cap Index Fund Admiral Shares (VSMAX)
E/R: 0.08% |
See our
detailed discussion of the leading options for this asset class
here. Our first choice here is the
Bridgeway Ultra-Small Company Market Fund (BRSIX). It has
an E/R of 0.77%. |
Tax-Managed Small Cap |
DFA US
Small Cap ETF (DFAS)
E/R: 0.26% |
Vanguard Tax-Managed Small Cap Fund Admiral Shares (VTMSX)
E/R: 0.12% |
See our
detailed discussion of the leading options for this asset class
here. Our first choice here is the
iShares Microcap Index Fund (IWC). It has
an E/R of 0.60%. |
Small Cap Value |
DFA U.S. Small Cap Value Portfolio (DFSVX)
E/R: 0.30% |
Vanguard Small Cap Value Index Fund Admiral Shares (VSIAX)
E/R: 0.08% |
See our
detailed discussion of the leading options for this asset class
here. Our first choice here is the
Invesco S&P SmallCap Value with Momentum ETF (XSVM). It has
an E/R of 0.36%. |
Tax-Managed Small Cap Value |
DFA US Small Cap Value ETF (DFSV)
E/R: 0.31% |
Vanguard Small Cap Value Index Fund Admiral Shares (VSIAX)
E/R: 0.08% |
See our
detailed discussion of the leading options for this asset class
here. Our first choice here is the
Invesco S&P SmallCap Value with Momentum ETF (XSVM). It has
an E/R of 0.36%. |
Small Cap Momentum |
N/A |
N/A |
Neither DFA nor Vanguard has an offering
in this asset class. Our first choice here is the Invesco S&P
SmallCap Momentum ETF (XSMO, E/R: 0.37%). |
Tax-Managed
Small Cap Momentum |
N/A |
N/A |
Neither DFA nor Vanguard has an offering
in this asset class. Our first choice here is the Invesco S&P
SmallCap Momentum ETF (XSMO, E/R: 0.37%). |
Foreign Developed Markets Large Cap |
DFA Large Cap International Portfolio (DFALX)
E/R: 0.17% |
Vanguard Developed Markets Index Fund Admiral Shares (VTMGX)
E/R: 0.09% |
See our
detailed discussion of the leading options for this asset class
here. Our first choice here is the
AQR International Momentum Style Fund (AIMOX). It has an expense
ratio of 0.55%. |
Tax-Managed Foreign Developed Markets Large
Cap |
N/A |
Vanguard Developed Markets Index Fund Admiral Shares (VTMGX)
E/R: 0.09% |
DFA does not have an offering
in this asset class.
See our detailed
discussion of the leading options for this asset class
here. |
Foreign Developed Markets Large Cap Value |
DFA International Value Portfolio (DFIVX)
E/R: 0.28% |
Vanguard International Value Fund (VTRIX)
E/R: 0.38% |
See our
detailed discussion of the leading options for this asset class
here. |
Tax-Managed Foreign Developed Markets Large
Cap Value |
DFA International Value ETF (DFIV)
E/R: 0.27% |
N/A |
Vanguard does not have an offering in this asset class.
See our
detailed discussion of the leading options for this asset class
here. |
Foreign Developed Markets Large Cap Momentum |
N/A |
N/A |
Neither DFA nor Vanguard has an offering
in this asset class. Our first choice here is the iShares MSCI
International Developed Momentum Factor ETF (IMTM). It has an
E/R of 0.30%. |
Tax-Managed
Foreign Developed Markets Large Cap Momentum |
N/A |
N/A |
Neither DFA nor Vanguard has an offering
in this asset class. Our first choice here is the iShares MSCI
International Developed Momentum Factor ETF (IMTM). It has an E/R of 0.30%. |
Foreign Developed Market Small Cap |
DFA International Small Company Portfolio (DISMX)
E/R: 0.50% |
Vanguard International Explorer Fund (VINEX)
E/R: 0.42% |
See our
detailed discussion of the leading options for this asset class
here. |
Foreign Developed Market Small Cap Value |
DFA International Small Cap Value Portfolio (DISVX)
E/R: 0.44%
or DFA
International Small Cap Value ETF (DISV)
E/R: 0.42% |
N/A |
Vanguard does not have an offering in this asset class.
See our
detailed discussion of the leading options for this asset class
here. |
Foreign Emerging Market Large Cap |
DFA Emerging Markets Portfolio (DFEMX)
E/R: 0.36% |
Vanguard FTSE Emerging Markets Index Fund Admiral Shares (VEMAX)
E/R: 0.14% |
See our
detailed discussion of the leading options for this asset class
here. Our preferred holding
in this asset class is the VictoryShares Emerging Markets Value
Momentum ETF (UEVM).
E/R: 0.45% |
Tax-Managed Foreign Emerging Market Large Cap |
N/A |
N/A |
Neither DFA nor Vanguard has an offering in this asset class.
Our preferred holding
in this asset class is the VictoryShares Emerging Markets Value
Momentum ETF (UEVM).
E/R: 0.45% |
Foreign Emerging Market Large Cap Value |
DFA Emerging Markets Value Portfolio (DFEVX)
E/R: 0.44%
or DFA Emerging Markets
Value ETF (DFEV) E/R: 0.43% |
N/A |
Vanguard does not have an offering in this asset class.
See our
detailed discussion of the leading options for this asset class
here. |
Foreign Emerging Market Small Cap |
DFA Emerging Markets Small Cap Portfolio (DEMSX)
E/R: 0.59% |
N/A |
Vanguard does not have an offering in this asset class.
See our
detailed discussion of the leading options for this asset class
here. |
Foreign Emerging Market Small Cap
Value |
DFA Emerging Markets Targeted Value Portfolio (DEMGX)
E/R: 0.66% |
N/A |
Vanguard does not have an offering in this asset class. |
US
Real Estate Investment Trusts (REITs) |
DFA Real Estate Securities Portfolio (DFREX)
E/R: 0.18%
or DFA US Real Estate ETF
(DFAR) E/R: 0.19% |
Vanguard Real Estate Index Fund Admiral Shares (VGSLX)
E/R: 0.10% |
See our
detailed discussion of the leading options for this asset class
here. |
Foreign REITs |
DFA International Real Estate Securities Portfolio (DFITX)
E/R: 0.27% |
Vanguard Global ex-U.S. Real Estate Fund Admiral Shares (VGRLX)
E/R:
0.15% |
See our
detailed discussion of the leading options for this asset class
here. |
Commodity Futures |
DFA Commodity Strategy Portfolio (DCMSX)
E/R: 0.30% |
Vanguard Commodity Strategy Fund Admiral Shares (VCMDX)
E/R: 0.20% |
See our
detailed discussion of the leading options for this asset class
here. |