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#2
11-15-2006, 11:00 AM
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Re: Dimensional Fund Advisors
[ QUOTE ]
I've heard good things about them. Looks like you need to go through a financial advisor, and their expense ratio is on average higher than Vanguards. Anyone have any experience with DFA? [/ QUOTE ] I am a financial advisor that can use the DFA funds. DFA's expense ratios are quite low. The higher expense ratios are for less liquid markets where trading costs are higher. For example, Vanguard's Emerging Markets Index fund has an expense ratio of 0.45%, but it has a 0.5% purchase fee and 0.5% redemption fee. DFA's Emerging Markets fund has an expense ratio of 0.69%. DFA's Emerging Markets Small Cap fund has an expense ratio of 0.97%. But this fund has 1,998 stocks in it that you basically can't get at Vanguard at all. DFA's trading strategies also help its performance, especially regarding small and micro-cap stocks. Additionally, they are not tied to specific indexes, and do not have to re-constitute their funds when the indexes change, leading to lower turnover, less taxes, and they don't get squeezed by arbitrageurs. Someone recently posted a link to an IFA website page comparing Vanguard and DFA performance over the last 7 years or so. Globally diversified and balanced portfolios using DFA funds have soundly outperformed similar portfolios of Vanguard funds. -Tom 
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#3
11-15-2006, 05:11 PM
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Re: Dimensional Fund Advisors
FYI, the 0.5% purchase and redemption fees for Vanguard's emergin markets goes to the fund, so you only lose money if you buy and sell more often than average.
DFA is great, but hard for individual investors to access.
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#4
11-15-2006, 05:30 PM
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Re: Dimensional Fund Advisors
[ QUOTE ]
FYI, the 0.5% purchase and redemption fees for Vanguard's emergin markets goes to the fund, so you only lose money if you buy and sell more often than average. DFA is great, but hard for individual investors to access. [/ QUOTE ] You can go through vanguard's brokerage service can't you?
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