Investing

3 Dimensional Mutual Funds for Superlative Returns

Zacks Equity Research

Published: August 3, 2023 8:40 am

Last Updated: August 3, 2023 11:56 am

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 14 offices worldwide.

It invests in domestic and foreign equities, fixed-income securities, retirement income funds, and real estate and commodity markets. As of Jun 30, 2023, Dimensional Fund Advisor had nearly $634 billion in assets under management. For the past four decades, the company has been providing 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 U.S. Small Cap Value Portfolio DFSVX, DFA U.S. Core Equity 1 Portfolio DFEOX and DFA Emerging Markets Social Core Equity Portfolio DFESX. 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 U.S. Small Cap Value Portfolio seeks long-term capital appreciation by investing in securities of U.S. companies. DFSVX advisors also invest in value stocks and securities characterized by a company’s shares having a high book value compared to their market value.

DFA U.S. Small Cap Value Portfolio has three-year annualized returns of 24.6%. DFSVX has an expense ratio of 0.31% compared with the category average of 1.16%.

DFA U.S. Core Equity 1 Portfolio invests in securities of U.S. companies of all sizes. DFEOX advisors invest in companies listed on a U.S. securities exchange, deemed appropriate by the advisors and weighted by market capitalization.

DFA U.S. Core Equity 1 Portfolio has three-year annualized returns of 15.7%. As of the end of January 2023, DFEOX held 2709 issues, with 4.7% of its net assets invested in Apple Inc.

DFA Emerging Markets Social Core Equity Portfolio invests its net assets in emerging markets equity securities. DFESX advisors invest in equity securities in the form of depositary receipts, which can be listed or traded outside the issuer’s domicile country.

DFA Emerging Markets Social Core Equity Portfolio has three-year annualized returns of 6.8%. William B. Collins-Dean has been one of the fund managers of DFESX since February 2019.

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.

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