3 Dimensional Mutual Funds for Higher Returns
Dimensional Fund Advisor, founded in 1981, believes in applying academic research in practical investing to generate higher returns. It offers investment solutions from various asset classes to institutional and individual investors, investment consultants and financial advisors. Dimensional Fund Advisor operates with a workforce of more than 1,600 professionals in more than 15 offices worldwide.
It invests in domestic and foreign equities, fixed-income securities, retirement income funds and real estate and commodity markets. As of Dec. 31, 2024, Dimensional Fund Advisor had nearly $777 billion in assets under management. For the past four decades, the company has provided investment management strategies to its clients. Founded 41 years ago, this fund family is headquartered in Austin, TX.
Below, we share with you three Dimensional mutual funds, viz DFA US Small Cap Value DFSVX, DFA Two-Year Global Fixed-Income DFGFX and DFA US Vector Equity DFVEX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of Dimensional mutual funds.
DFA US Small Cap Value seeks long-term capital appreciation. DFSVX invests in value stocks and securities are considered value stocks primarily because a company’s shares have a high book value in relation to their market value.
DFA US Small Cap Value has a three-year annualized return of 10%. As of the end of October 2024, DFSVX held 1001 issues, with 0.8% of its net assets invested in Taylor Morrison Home Corp.
DFA Two-Year Global Fixed-Income objective of the fund is to maximize total returns consistent with the preservation of capital. DFGFX invests in high-quality, U.S. dollar-denominated domestic or foreign obligations, which mature within two years from the date of settlement.
DFA Two-Year Global Fixed-Income has three-year annualized returns of 2.8%. DFGFX has an expense ratio of 0.16%.
DFA US Vector Equity fund invests most of its net assets in a broad and diverse group of companies operating in the United States with high exposure in smaller-capitalization, lower relative price, and higher profitability companies. DFVEX advisors choose to invest in a weighted set of U.S. operating companies listed on the U.S. securities exchange.
DFA US Vector Equity Fund has three-year annualized returns of 9.3%. Jed S. Fogdall has been one of the fund managers of DFVEX since February 2012.
To view the Zacks Rank and the past performance of all Dimensional mutual funds, investors can click here to see the complete list of Dimensional mutual funds.