Articles From Dimensional Fund Advisors (22)

79,736 views
Article Library

  • Dimensional Fund Advisors

    Recent Market Volatility

    869
    by Dimensional Fund Advisors — Tuesday, December 4, 2018

    What should you make of recent ups and downs in the stock market? Here's helpful context on volatility and expected ...Read More

  • Dimensional Fund Advisors

    Midterm Elections—What Do They Mean for Markets?

    637
    by Dimensional Fund Advisors — Monday, November 5, 2018

    It's almost Election Day in the US once again. For those who need a brief civics refresher, every two years the full US House of Representatives and one-third of the Senate are up for reelection. While the outcomes of the elections are uncertain, one thing we can count on ...Read More

  • jackson

    Recent Market Volatility

    2,398
    by Dimensional Fund Advisors — Wednesday, February 7, 2018

    After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From February 1–5, the US market (as measured by the Russell 3000 Index) fell almost 6%, resulting in many ...Read More

  • Dimensional Fund Advisors

    New Year, New Market Highs

    1,397
    by Dimensional Fund Advisors — Monday, February 5, 2018

    Throughout 2017, the S&P 500 Index recorded 62 new closing highs in 251 days of trading. In the first three weeks of January 2018 alone, the index crossed 10 new record closing highs in 13 days of trading. With stock indices continuing to set new highs, does this mean ...Read More

  • jackson

    The Uncommon Average

    2,006
    by Dimensional Fund Advisors — Tuesday, January 23, 2018

    “I have found that the importance of having an investment philosophy—one that is robust and that you can stick with— cannot be overstated.” – David Booth The US stock market has delivered an average annual return of around 10% since 1926.[1] ...Read More

  • Dimensional Fund Advisors

    Home Bias and Global Diversification

    1,636
    by Dimensional Fund Advisors — Thursday, January 11, 2018

    By pursuing a globally diversified approach to investing, one doesn’t have to attempt to pick winners to achieve a rewarding investment experience. Every day we enjoy the benefits of an interconnected world. We might start our day with a cup of coffee that originated in ...Read More

  • Dimensional Fund Advisors

    As Goes January, So Goes the Year?

    1,626
    by Dimensional Fund Advisors — Tuesday, January 9, 2018

    As investors ring in the new year, some may see the occasional headline about the “January Indicator” or “January Barometer.” This theory suggests that the price movement of the S&P 500 during the month of January may signal whether that index will ...Read More

  • Dimensional Fund Advisors

    To Bit or Not to Bit: What Should Investors Make of Bitcoin Mania?

    2,789
    by Dimensional Fund Advisors — Friday, December 15, 2017

    Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios. Cryptocurrencies such as bitcoin emerged only in the past decade. Unlike traditional ...Read More

  • Dimensional Fund Advisors

    Key Questions for the Long-Term Investor

    2,146
    by Dimensional Fund Advisors — Tuesday, November 28, 2017

    Focusing on what you can control can lead to a better investment experience. Whether you’ve been investing for decades or are just getting started, at some point on your investment journey you’ll likely ask yourself some of the questions below. Trying to answer these ...Read More

  • Dimensional Fund Advisors

    Mutual Fund Landscape - 2017

    2,974
    by Dimensional Fund Advisors — Thursday, July 27, 2017

    Each year, Dimensional analyzes returns from a large sample of US-based mutual funds. Our objective is to document the power of market prices by assessing fund manager performance relative to index benchmarks. This year’s study updates results through 2016. The evidence ...Read More

  • Dimensional Fund Advisors

    Global Market Breakdown

    4,255
    by Dimensional Fund Advisors — Tuesday, June 27, 2017

    The global market breakdown represents the value of capitalism among the U.S., International/Developed, and Emerging Markets around the world. Investors can use the global market breakdown as a starting point in determining their overall equity asset allocation and then make ...Read More

  • Dimensional Fund Advisors

    When Rates Go Up, Do Stocks Go Down?

    3,751
    by Dimensional Fund Advisors — Wednesday, June 21, 2017

    Should stock investors worry about changes in interest rates? Research shows that, like stock prices, changes in interest rates and bond prices are largely unpredictable.[1] It follows that an investment strategy based upon attempting to exploit these sorts of changes ...Read More

  • Evolution of Financial Research: The Profitability Premium

    3,867
    by Dimensional Fund Advisors — Thursday, April 13, 2017

    Since the 1950s, there have been numerous breakthroughs in the field of financial economics that have benefited both society and investors. One early example, resulting from research in the 1950s, is the insight that diversification can increase an investor’s wealth. ...Read More

  • Going Global: A Look at Public Company Listings

    3,071
    by Dimensional Fund Advisors — Tuesday, March 14, 2017

    Trivia time: how many stocks make up the Wilshire 5000 Total Market Index (a widely used benchmark for the US equity market)? While the logical guess might be 5,000, as of December 31, 2016, the index actually contained around 3,600 names. In fact, the last time this index ...Read More

  • The Power of Markets

    3,852
    by Dimensional Fund Advisors — Tuesday, November 1, 2016

    In 1958, economist Leonard Read published an essay entitled “I, Pencil: My Family Tree as Told to Leonard E. Read.” The essay, narrated from the point of view of a pencil, describes the “complex combination of miracles” necessary to create and bring to ...Read More

  • Presidential Elections and the Stock Market

    5,064
    by Dimensional Fund Advisors — Monday, October 3, 2016

    Next month, Americans will head to the polls to elect the next president of the United States. While the outcome is unknown, one thing is for certain: There will be a steady stream of opinions from pundits and prognosticators about how the election will impact the stock market. ...Read More

  • UK's EU Referendum Result

    5,167
    by Dimensional Fund Advisors — Friday, June 24, 2016

    On June 23, citizens of the United Kingdom voted to leave the European Union. While there has been much speculation leading up to and since the vote, many of the longer-term implications of the referendum remain unclear, as the process for negotiating what a UK exit may look ...Read More

  • Index Reconstitution: The Price of Tracking

    9,180
    by Dimensional Fund Advisors — Thursday, June 2, 2016

    With the annual reconstitution of the Russell indices approaching, it is a good opportunity to revisit how index reconstitution events affect trading costs and returns. Index funds are an innovative solution for investors that provide diversified investments at low fees. On any ...Read More

  • Booth, Fama and French: Perspectives on Market Volatility

    5,038
    by Dimensional Fund Advisors — Friday, February 26, 2016

    Volatile markets can be stressful for investors. But volatility also can be viewed in a more positive light. Price changes show that markets are working as they quickly incorporate new information into stock prices. A sound investment philosophy can guide behavior during ...Read More

  • Considering Central Bank Influence on Yields

    6,436
    by Dimensional Fund Advisors — Monday, October 5, 2015

    Many market participants presume that long-term interest rates will rise when a Fed tightening policy begins. However, history shows that short-term rates and long-term rates do not move in ...Read More

  • Credit Ratings vs. Market Pricing

    5,085
    by Dimensional Fund Advisors — Friday, June 29, 2012

    In the highly competitive financial markets, most "news" has already been incorporated into prices. Dimensional takes advantage of the information embedded in prices, rather than relying on third parties rating ...Read More