between market price and net asset value. Investors who do not understand what this means should refrain from trading ETFs altogether. Finally, lessons from Steps 4 and 6 show why investors must avoid the temptation to use ETFs as markettiming tools and tactical asset allocation. Dimensional funds are available through a select group of fiduciary registered investment advisors to whom the company provides comprehensive data from CRSP on numerous indexes dating all the way back to 1926. This allows for analysis of data that is usually only available to academic researchers. Dimensional’s emphasis on educating advisors, who in turn, educate investors, is intended to improve the investor experience for the clients of fiduciary advisors. Dalbar surveyed investment advisors four times between 1997 and 2004. In a study titled, “The Professionals’ Pick.” advisors rated Dimensional the best overall no-load mutual fund company in 1997, 2000, 2002, and number two in 2004. Dimensional was also ranked number one for Advisor Commitment in 2010 and 2011 by Cogent Research and #1 by Barron’s in 2010. In 2014, Dimensional was the focus of a feature article, with Nobel Prize winner Eugene Fama and Dimensional CEO and founder David Booth gracing the cover of the publication. See Figure 11-5 for a summary of their accolades.
It’s All In The Mix A globally diversified index portfolio has historically delivered reasonable returns for the risk that is built into each
Published on Jun 1, 2015
This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...