Dimensional Fund Advisors (“Dimensional”) invests differently. They build portfolios based on the science of capital markets. Decades of research guide the way. For more than 35 years, they have helped investors pursue higher expected returns using a dynamic implementation process that integrates research, portfolio design, and portfolio management and trading. Through deep working relationships with leading financial economists, they apply academic insights to practical strategies in an effort to help investors benefit from what the capital markets offer. Their goal is to deliver an outstanding investment experience to every client.
CAPITAL MARKETS BUILD WEALTH
Markets throughout the world have a history of rewarding investors for the capital they supply. Companies compete for investment capital, and millions of investors compete to find the most attractive returns. Markets quickly incorporate information from this competition into security prices. Traditional investment approaches strive to beat the market by taking advantage of pricing “mistakes” and attempting to predict the future. Too often, these approaches prove costly and futile. Predictions go awry and managers may hold the wrong securities at the wrong time, missing the strong returns that markets can provide. Meanwhile, capital-based economies thrive—not because markets fail but because they succeed.
INVESTING VS. SPECULATING
The futility of speculation is good news for the investor. It means prices for public securities are fair and that portfolio structure, not mispricing, explains differences in average returns. It is certainly possible to outperform markets, but not without balancing risks and costs against expected returns. Financial research identifies the sources of investment returns. Dimensional provides the tools and experience to target these sources and help investors achieve their goals.
Dimensional considers a dimension to be a factor that explains differences in returns, demonstrates persistence through time and pervasiveness across markets, and is cost-effective to capture in diversified portfolios. These characteristics increase confidence that returns observed in historical data may appear in the future. From capital markets research over the past 50 years, they have gained a powerful understanding of the dimensions that generate higher expected returns.
By considering how much of each equity and fixed income dimension to target, investors can adjust the total expected return profile of their portfolios and more easily build a strategy to support their investment goals.
FUNDAMENTAL TO YOUR FINANCIAL PLAN
A financial plan based on the science of investing frees you to focus on what matters. Let markets work for you by taking advantage of sensible, well-diversified, low-cost portfolios backed by decades of research and practical experience.
To request a printed copy of Dimensional Fund Advisor’s publication, “Putting Financial Science to Work”, click HERE.
“Dimensional” refers to the Dimensional entities generally, rather than to one particular entity. These companies are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., and Dimensional Japan Ltd.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at www.dimensional.com.
Principal Risks of Investing
The principal risks associated with an investment are fully described in the prospectus in the section called “Principal Risks.” The value of an investment will fluctuate based on economic, political, and stock-specific events, and there is a chance you will lose money. Small company stocks may fluctuate more in price than those of large companies. Stocks of non-US companies may also fluctuate due to these factors and expose investors to fluctuations in currency exchange rates. The stocks of companies in emerging markets are subject to additional risks due to the unstable nature of some governments and the small and illiquid nature of their securities markets. The use of derivatives to hedge specific risks may increase expenses, and there is no guarantee that a hedging strategy will work. Past performance is no guarantee of future results. Bonds are subject to market and interest rate risks, and availability.
There is no guarantee that the investment strategies presented will succeed. This information is intended to illustrate products and services available at Dimensional Fund Advisors, and the strategies do not necessarily represent the experience of other clients, nor do they indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. Individual clients should review with their financial advisors the terms and conditions and risks involved with specific products or services. Diversification does not eliminate the risk of market loss.
Mutual funds distributed by DFA Securities LLC.