How Should Investors Think About Global Performance?

Dimensional's Jake DeKinder and Mark Gochnour discuss realized vs. expected returns, the behavior of the premiums, and a global perspective on investing. Recorded on April 9, 2020.


DISCLOSURES:

The Global Equity Portfolio and the Global 60/40 Portfolio (60% Equity/40% Fixed Income) are hypothetical model portfolios composed of indices.  The model performance does not reflect advisory fees or other expenses associated with the management of an actual portfolio.  There are limitations inherent in model allocations. In particular, model performance may not reflect the impact that economic and market factors may have had on the advisor's decision making if the advisor were actually managing client money.  Indices are not available for direct investment.

The Global Equity Portfolio is composed of the following indices:  40% Dimensional US Adjusted Market 2 Index, 10% Dimensional US Adjusted Market Value Index, 10% Dimensional US Large Cap High Profitability Index, 15% Dimensional International Adjusted Market Index, 5% Dimensional International Vector Index, 5% Dimensional International Large Cap High Profitability Index, 5% Dimensional Emerging Markets Adjusted Market Index, 5% Dimensional Emerging Markets Value Index, and 5% S&P Global REIT Index (gross div.).

The Global 60/40 Portfolio is composed of the following indices:  24% Dimensional US Adjusted Market 2 Index, 6% Dimensional US Adjusted Market Value Index, 6% Dimensional US Large Cap High Profitability Index, 9% Dimensional International Adjusted Market Index, 3% Dimensional International Vector Index, 3% Dimensional International Large Cap High Profitability Index, 3% Dimensional Emerging Markets Adjusted Market Index, 3% Dimensional Emerging Markets Value Index, and 3% S&P Global REIT Index (gross div.), 20% Dimensional US Adjusted Investment Grade Index, and 20% Dimensional Global Adjusted Fixed Income Market Index.

Dimensional index descriptions available upon request. The Dimensional Indices have been retrospectively calculated by Dimensional Fund Advisors LP and did not exist prior to their index inceptions dates. Accordingly, results shown during the periods prior to each Index's index inception date do not represent actual returns of the Index.  Other periods selected may have different results, including losses.

Investment involves risks.  The investment return and principal value of an investment may fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original value.  Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.  Diversification neither assures a profit nor guarantees against loss in a declining market.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates, and they are subject to various other risks, including changes in credit quality, liquidity, prepayments, and other factors. 

International investing involves special risks such as currency fluctuation and political instability.  Investing in emerging markets may accentuate these risks.

Dimensional makes no representation as to the suitability of any advisor, and we do not endorse, recommend, or guarantee the services of any advisor.

All expressions of opinion are subject to change.  This content is distributed for informational purposes and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.

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Indices are not available for direct investment.  Their performance does not reflect the expenses associated with management of an actual portfolio.

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.


All videos are being provided for informational purposes only and should not be considered a solicitation, recommendation, or endorsement of any particular security, product or service, or considered to be investment or tax advice. No investment decisions should be made solely based on the information in any of these videos. The opinions referenced within are as of the date of each video recording and are subject to change without notice. Information provided by third-party sources is not endorsed or guaranteed by IFA. Please be sure to use the pause button to fully read the important disclosures at the end of each video.