3 Dimensional Mutual Funds to Buy for Excellent 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 1,500 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. Over 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 Sustainability Core DFSIX, DFA U.S. Targeted Value Portfolio DFFVX and DFA US Small Cap Value DFSVX. 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 Sustainability Core invests most of its net assets in a broad and diverse group of domestic companies, preferably with a small market cap, lower relative price and higher profitability. DFSIX advisors adjust the composition of the portfolio based on sustainability impact considerations.

DFA US Sustainability Core has three-year annualized returns of 13.9%.As of the end of January 2025, DFSIX held 1952 issues, with 5.5% of its net assets invested in Apple.

DFA U.S. Targeted Value Portfolio fund invests most of its net assets in a well-diversified portfolio of readily marketable domestic small and mid-cap companies, which, according to its advisor, are value stocks with high profitability. DFFVX advisors also invest in futures and options contracts of U.S. equity securities and indices.

DFA U.S. Targeted Value Portfolio fund has a three-year annualized return of 6%. DFFVX has an expense ratio of 0.29%.

DFA US Small Cap Value fund invests most of its net assets in securities of small-cap domestic companies. DFSVX advisors may also buy or sell futures and options contracts for U.S. equity securities and indices to adjust equity market exposure based on actual or expected cash flows from the fund.

DFA US Small Cap Value has three-year annualized returns of 5.8%. Marc C. Leblond has been one of the fund managers of DFSVX since February 2020.

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.