Unveiling Proven Investment Strategies: The Dimensional Funds Advantage
I want to share some of my investment approach this week so that people can understand great options that are out there that they probably haven't even heard of.
I often use Dimensional Funds as a cornerstone of clients investment portfolios because very simply it's an evidence based approach that is proven to work.
So what the heck does evidence based even mean? It means they apply extensive nobel prize winning research on what things can be done to perform better than the market....and then they do those things.
It's following simple rules, based on evidence such as allocating more money to more profitable companies, and then not trying to do more than that.
The result is performance that has been better than a standard tracker fund, and clients that feel secure in their investment even when markets are jittery. Performance of 13.41% per year since inception. That would be enough to turn $100k into $1.4m over 20 years although obviously past performance is no guarantee of future performance. Having said that I like Dimensional funds not mainly because of the potential upside but more because it's a secure process that people can stick with in good times and bad.