Dimensional Fund Advisors
With $152 billion under management, Dimensional Fund Advisors is a world leader in passive investing. Working years ahead of the industry, Dimensional forged a new way to invest.
DFA funds are only available to institutional investors or through approved financial advisors. The firm launched its first funds in 1981 based on quantitative data showing that small cap and value stocks outperform other asset classes.
Articles Comparing Dimensional to Vanguard Index Funds
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DFA Versus Vanguard: Has DFA Outperformed Vanguard by Enough to Justify its Advisor Fees?
Professor Edward Tower at Duke University studied returns of Dimensional versus Vanguard index funds from 1/1999 to 12/2006. The study concluded that DFA funds are superior to Vanguard: “The DFA portfolio of domestic funds beat the style adjusted portfolio of Vanguard domestic funds by 2.63 %/year continuously compounded. The corresponding differential for the international funds was 3.59 %/year continuously compounded.” Similar articles follow:
- How Enhanced Index Investing Can Be Used To Enhance Your Investment Portfolio
- The best mutual funds: DFA or Vanguard?
This is not an offer or solicitation for the purchase or sale of securities. Although Lexington believes that DFA is a good fund company for use by its clients, it will review numerouse investment vehicles and make recommendations based upon the needs and circumstances of the clients. DFA performance is not the advisor’s performance.