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IFA Contributors

Momentum: From Theory to Practical Application

21,906
by Murray Coleman
Updated: Monday, October 11, 2021

How to avoid the unintended costs of focusing on momentum as a factor of expected ...Read More

Article Library

  • Dimensional Fund Advisors

    When It's Value vs. Growth, History Is on Value's Side

    541
    by Dimensional Fund Advisors — Updated: Tuesday, October 5, 2021

    There is pervasive historical evidence of value stocks outperforming growth stocks. Data covering nearly a century in the US, and nearly five decades of market data outside the US, support the notion that value stocks—those with lower relative prices—have higher ...Read More

  • Dimensional Fund Advisors

    Will Inflation Hurt Stock Returns? Not Necessarily.

    523
    by Dimensional Fund Advisors — Updated: Wednesday, September 22, 2021

    Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks.A look at equity performance in the past three decades does not show any reliable connection between periods of ...Read More

  • Mark Hebner and IFA Contributors

    The Hunt for Profitability

    30,632
    by Murray Coleman — Updated: Tuesday, August 10, 2021

    Here's a look at the development of the profitability factor as a research tool in determining expected ...Read More

  • Weston Wellington

    ‘Everything Screams Inflation.' How to Interpret the Headlines.

    904
    by Weston Wellington — Tuesday, August 3, 2021

    How quickly things change. Two years ago, the New York Times reported, “Federal Reserve officials are increasingly worried that inflation is too low and could leave the central bank with less room to maneuver in an economic downturn.”1 More recently, a Wall Street ...Read More

  • murray@ifa.com

    2021 Q2 Market Review

    1,083
    by Murray Coleman — Monday, July 19, 2021

    A growing economy kept boosting IFA Index Portfolio returns in the second quarter. In particular, global real estate posted strong ...Read More

  • Mark Hebner and Murray Coleman

    Selecting Investments

    62,297
    by Murray Coleman — Updated: Monday, July 12, 2021

    The science behind how we separate the wheat from the chaff, so to speak, in making our fund recommendations to ...Read More

  • Dimensional Fund Advisors

    Out of Bounds: Style Drift in the Russell 2000 Value Index

    1,071
    by Dimensional Fund Advisors — Tuesday, June 29, 2021

    AMC and GameStop are priced squarely in the large cap growth space, and yet represented nearly 1.5% of the Russell 2000 Value Index as of May 31. On the scale of size discrepancies, this is akin to 7-foot-6-inch former NBA star Yao Ming visiting a kindergarten class. However, ...Read More

  • Mark Hebner

    Calculations for T-Statistics

    75,419
    by Mark Hebner — Updated: Monday, June 28, 2021

    In calculating the t-stat, the first step is to determine the excess returns a manager earned above an appropriate ...Read More

  • Kenneth French

    False Negatives and False Positives

    1,144
    by Kenneth French — Thursday, June 17, 2021

    One of the things that makes the COVID-19 pandemic so challenging is false negatives. Early in the pandemic, it was clear that the consequences of infection are more severe for older people, a group my wife and I were surprised to discover includes us. We also learned that most ...Read More

  • jackson

    Inflation: An Exchange Between Eugene Fama and David Booth

    1,527
    by Dimensional Fund Advisors — Thursday, June 10, 2021

    With the economy starting to recover from the COVID-19 pandemic and investor concerns turning increasingly toward inflation, Dimensional Founder David Booth talked with Nobel laureate Eugene Fama about inflation and how investors should think about it in their portfolios. ...Read More

  • jackson

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

    1,691
    by Dimensional Fund Advisors — Tuesday, March 23, 2021

    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

  • DFA

    Tales from the Crypto: How to Think About Bitcoin

    1,497
    by Dimensional Fund Advisors — Wednesday, March 17, 2021

    Bitcoin and related cryptocurrencies (now numbering in the thousands) are the subject of much debate and fascination. Given bitcoin’s dramatic price changes, it is not surprising that many are speculating about its possible role in a ...Read More

  • Dimensional Fund Advisors

    The Performance of Late-Cycle Premiums

    1,806
    by Dimensional Fund Advisors — Thursday, February 25, 2021

    The media has been sharpening its focus on cycles lately, but not in anticipation of the Tour de France. Rather, the financial media’s spotlight is on business cycles. A common refrain from the industry is that the performance of certain groups of stocks is tied to the ...Read More

  • jackson

    FANMAG: Because FAANGs Are So Yesterday

    2,058
    by Dimensional Fund Advisors — Thursday, February 18, 2021

    A handful of large technology stocks have garnered attention for outsize returns in recent years. Collectively referred to by the FANMAG acronym, Facebook, Amazon, Netflix, Microsoft, Apple, and Google all substantially outperformed the US ...Read More

  • jackson

    Flexibility in Practice: How We Handled GameStop

    1,683
    by Dimensional Fund Advisors — Tuesday, February 16, 2021

    After peaking, GameStop’s subsequent fall in price put it in the low profitability growth space of the small cap market, which we exclude across our equity portfolios due to low expected returns. Our daily process allowed us to again respond quickly. By February 3, we had ...Read More

  • jackson

    Gauging Market Expectations?

    1,762
    by Dimensional Fund Advisors — Thursday, February 4, 2021

    A recent flurry of return spikes for a handful of US stocks has captivated investors and noninvestors alike. Wall Street news trending on social media even amid an NFL playoff season is indeed an unusual event.So, what should investors make of these dramatic price movements? A ...Read More

  • jackson

    Investing in FAANG Stocks: Should You Expect Unexpected Returns?

    2,081
    by Dimensional Fund Advisors — Thursday, January 28, 2021

    Investment returns have two parts: the expected return and the unexpected return. The expected return is the best guess of what will happen based on all the information currently available. The unexpected return is the surprise, the difference between what does happen and what ...Read More

  • murray@ifa.com

    2020 Q4 Market Review

    2,571
    by Murray Coleman — Monday, January 18, 2021

    Patient investors who kept their tilts to small-cap and value stocks were rewarded in the year's final ...Read More

  • jackson

    Market Review 2020: Looking Back on an Unprecedented Year

    2,714
    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