EXPERT INSIGHTS

How to Interpret the Headlines.

How to Interpret the Headlines.

For over 40 years, Dimensional has employed a systematic and cost-effective approach to capture every bit of return they can for clients, in the real world.

Wes Crill, Head of Investment Strategists and Vice President, spoke to the Financial Times about the “close to unprecedented” rebound of small cap value stocks in recent months

This annual report documents the power of market prices by assessing US-based mutual fund performance relative to benchmarks over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds, and the impact of high fees and turnover on manager performance. Returns data updated through 2020.

With its dramatic price changes, bitcoin may be catnip for traders. But those in search of a sound investment may want to ask some hard questions before joining the excitement.

Stock prices remain our best prediction of the future amid continuing technological change.

Dimensional’s daily process allowed us to respond in real time to wild swings in GameStop’s stock price, which is an advantage of Dimensional’s approach versus traditional indexing.

With swings by GameStop stock grabbing headlines, this is probably a good time to mention that investing and gambling are not the same thing.

It’s tempting to chase the dazzling returns posted by Facebook, Amazon, Netflix, Microsoft, Apple, and Google. Here’s why we believe investors should be cautious.

No matter what’s driving a stock spike, it’s important to remember what price changes tell you about expected returns.

Indexing can sometimes leave returns on the table. The latest evidence? The stock price of the iconic electric-car company Tesla soared before joining the widely followed benchmark and slumped quickly after.

The tumult of 2020 showed that markets continue to function and people can adapt to difficult circumstances, even in the face of extraordinary challenges.

Dimensional will reduce management fees across 33 equity mutual funds, representing a 15% reduction on an asset-weighted basis* for the impacted funds. For a full list of the changes, please refer to the table below. The fee reduction will go into effect February 28, 2021. “For nearly forty years, Dimensional has refined, enhanced and advanced […]

It’s natural for investors to seek a connection between who wins the White House and which way stocks will go. But a look at history underscores that the outcome of an election is only one of many inputs to the market.

This year’s turmoil has inflicted hardships on some firms while presenting opportunities for others—and the stock market is behaving as we might expect.

What does a century of economic cycles teach investors about investing? Our interactive exhibit examines how stocks have behaved during US economic downturns. Markets around the world have often rewarded investors even when economic activity has slowed. This is an important lesson on the forward-looking nature of markets, highlighting how current market prices reflect market […]

Investors often wonder whether the market will rise or fall based on who is elected president. The data show that capturing the long-term returns of the capital markets does not depend on which party controls the White House. In a recent webcast, Dimensional’s Mark Gochnour and Jake DeKinder offered lessons from history.

History shows that you can’t time stock returns. To capture the market’s historical premiums, you have to be patient.

Professor Kenneth French explains key principles of a successful investing experience.

When markets are rough, it’s tempting to want to make a quick change to your investments. But much like changing lanes in traffic, impulsive moves can add anxiety and risk with no guarantee you’ll benefit.

Dimensional is pleased to announce it has filed a preliminary registration statement with the Securities and Exchange Commission for the launch of three actively managed exchange traded funds (ETFs), planned for later this year. The ETFs will offer broadly diversified, all cap core equity exposure to US, non-US developed, and emerging markets, while incorporating longstanding […]

The US stock market has delivered an average annual return of about 10%. Most years, though, have been a lot different than the average. Understanding the range of outcomes can help increase the odds of a successful investment experience in the long term.  

How can investors make sense of the apparent disconnect between stock market performance and economic indicators?

What can investors learn from the growing difference in the price-to-book ratios of value vs. growth stocks?

This annual report documents the power of market prices by assessing US-based mutual fund performance relative to benchmarks over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds, and the impact of high fees and turnover on manager performance. Returns data updated through 2019.

Sudden market downturns can be unsettling. Sticking with your plan helps put you in the best position to capture a recovery.

Worth recently shared an essay by Dimensional Founder and Executive Chairman David Booth on how investors can have a rewarding experience by changing the way they think about investing.

It’s hard to predict the best days in the markets, and the cost of missing them can be high. The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. A hypothetical $1,000 […]

Using a representative sample of US-domiciled mutual fund returns from Morningstar, the report documents the power of market prices by assessing fund returns over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds, and the impact of high fees and turnover on manager performance.   Dimensional’s 2019 analysis […]

For the upcoming midterms, commentators are likely to offer opinions on who will win and what impact the vote will have on markets. Looking at returns since 1926 shows that months when midterm elections took place did not tend to have returns that different than any other month.

Jake DeKinder, Head of Client Communications, explains why investors should view recent market declines as part of the nature of investing.