Why to Think Twice Before Chasing Only Big Stocks

Tech stocks with giant market caps have gotten a lot of attention lately. But history shows giant stocks can, after their rise, have marketlike returns. And tech advances can help all kinds of firms.

©2025 Dimensional Fund Advisors LP. All rights reserved

DISCLOSURES:

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.

Dimensional makes no representation as to the suitability of any advisor, and does 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.

©2025 Dimensional Fund Advisors LP. All rights reserved

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.

The video on this page was republished here with permission of Dimensional Fund Advisors. No further republication or redistribution is permitted without the written consent of Dimensional Fund Advisors.

Please pause the video to read all important disclosures related to performance data, including the limitations of hypothetical or back-tested results, the assumptions used, and other inherent risks. Charts and tables shown in this video may also be accessed in the 'Videos' section above.

These videos are provided for informational purposes only and should not be construed as a solicitation, recommendation, or endorsement of any particular security, product, or service, nor should they be considered investment or tax advice. Investing involves risks, including potential loss of principal, and there is no guarantee that any investment strategy will be successful. Past performance is not indicative of future results, and no investment decisions should be based solely on the content of these videos.

Appearances by non-affiliated individuals, as well as third-party quotes, references, or likenesses, do not constitute an endorsement of Index Fund Advisors, Inc. or any specific service, strategy, or advisor. Third-party information is provided for informational purposes only and is not guaranteed by IFA.

Hypothetical or back-tested performance is provided solely for illustrative purposes and does not represent actual trading or the performance of any specific client account. Hypothetical performance is achieved through the application of models or strategies applied in hindsight and is subject to significant limitations. Assumptions used in calculating hypothetical performance may not reflect actual market conditions or material economic and market factors that could affect results.