Articles From Dimensional Fund Advisors (12)

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    Market Review 2020: Looking Back on an Unprecedented Year

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    by Dimensional Fund Advisors — Monday, January 11, 2021

    The year 2020 proved to be one of the most tumultuous in modern history, marked by a number of developments that were historically unprecedented. But the year also demonstrated the resilience of people, institutions, and financial markets. The novel coronavirus was already in ...Read More

  • jackson

    The Right Thing, Not the Easy Thing

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    by Dimensional Fund Advisors — Wednesday, November 25, 2020

    New entrants into the field of systematic investing must look for ways to differentiate themselves. Impressive backtested performance is one way to stand out. But are these backtests robust? Are they likely to withstand the challenges of real-world implementation? Historical ...Read More

  • Dimensional Fund Advisors

    An Exceptional Value Premium

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    by Dimensional Fund Advisors — Friday, October 9, 2020

    It’s probably not news to most value investors that the value premium has struggled over the past decade. What might be news is just how extreme an outlier recent value stock underperformance represents. The periodic returns for value versus growth in Exhibit 1 convey a ...Read More

  • Dimensional Fund Advisors

    Large and In Charge? Giant Firms atop Market Is Nothing New.

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    by Dimensional Fund Advisors — Thursday, October 1, 2020

    A top-heavy stock market with the largest 10 stocks accounting for over 20% of market capitalization and a marquee technology firm perched at No. 1? This sounds like a description of the current US stock market, dominated by Apple and the other FAANG stocks,1 but it is actually ...Read More

  • Dimensional Fund Advisors

    The Index Bogeyman

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    by Dimensional Fund Advisors — Tuesday, April 2, 2019

    Over the last several years, index funds have received increased attention from investors and the financial media. Some have even made claims that the increased usage of index funds may be distorting market prices. For many, this argument hinges on the premise that indexing ...Read More

  • Dimensional Fund Advisors

    Getting to the Point of a Point

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    by Dimensional Fund Advisors — Wednesday, March 6, 2019

    A quick online search for “Dow rallies 500 points” yields a cascade of news stories with similar titles, as does a similar search for “Dow drops 500 points.” These types of headlines may make little sense to some investors, given that a ...Read More

  • Dimensional Fund Advisors

    Deja Vu All Over Again

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    by Dimensional Fund Advisors — Tuesday, February 12, 2019

    Investment fads come and go. Letting short-term trends influence your approach may be counterproductive to pursuing your financial ...Read More