THE DIMENSIONAL DIFFERENCE

Dimensional Investing

is about implementing the

great ideas in ﬁnance

Dimensional Investing is about implementing the great ideas in ﬁnance

A culture of academic inquiry has been Dimensional’s bedrock from the start. Our firm is driven by an evidence-based approach, Nobel Prize-winning insights, and decades of expertise pursuing higher returns while maintaining low costs and diversification.

Our investment process reflects years of innovation and refinement, and this has translated into better returns for investors.

Dimensional

84%

US equity and fixed income funds that outperformed benchmarks over 20 years

The Industry

17%

US equity and fixed income funds that outperformed benchmarks over 20 years

US domiciled mutual funds and US domiciled ETFs are not offered for sale outside the US. Past performance is no guarantee of future results.

Our commitment to research, rigor, and the pursuit of truth has helped transform the industry toward more transparent, data-driven solutions for investors. That commitment continues to propel Dimensional forward today.

On the Leading Edge Applying Financial Science

Dimensional’s investment approach is grounded in economic theory and backed by decades of empirical data. Our ongoing research to understand what drives returns and to uncover insights that are useful moving forward fuels innovation at the firm.

We hold research to a high standard and only act on findings we firmly believe can benefit investors.

This culture of uncompromising research emerged from top minds in finance, and it lives on in our daily work at the firm.

Driven by the Power of Markets

Markets do an excellent job adjusting to new information and incorporating the expectations of millions of buyers and sellers into prices—in real time.

Prices change based on what’s happening right now and what people think will happen in the future. That means that stock prices are a good representation of fair value and are always adjusting for a positive expected return. Markets have to work this way—otherwise, nobody would agree to invest.

If markets worked another way, opportunities would continually arise for investment managers to identify pricing “mistakes” and convert them into higher returns.

But more than 50 years of academic research show that the vast majority of managers consistently underperform benchmarks.

Rather than trying to find what markets got wrong, at Dimensional, we use the information contained in prices to seek better returns and manage risk.

Trusting markets means we take a less subjective, more systematic approach to investing—an approach we can implement consistently around the world and across asset classes.

Adding Value at Every Turn

Our evidence-based approach guides us at every point in the investment process, from conducting research, to designing portfolios, to considering when and how to trade.

We build portfolios that emphasise dimensions of the market that research shows have higher expected returns.

Our flexible process is another way we add value. As market prices change every day, a strategy that rebalances only once or twice a year, like most index funds, can leave returns on the table.

At Dimensional, we buy and sell securities based on up-to-date information on what can improve returns.

If we didn’t do better than index funds, we wouldn’t have a business.

David Booth

Founder and Chairman

Our long-term track record shows the value our approach has delivered over indexing. What started with the launch of our first fund in 1981 still holds true today. Every dollar invested is backed by financial science and Dimensional’s commitment to providing an outstanding investment experience.

Managed Funds

A full range of investment solutions backed by financial science

ETFs

Flexible, competitively priced solutions that target higher expected returns

Sustainability

A climate-focused approach to sustainable investing

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Disclosures

Performance data shown represents past performance and is no guarantee of future results.

There is no guarantee strategies will be successful. Diversification neither assures a profit nor guarantees against loss in a declining market.

Risks include loss of principal and fluctuating value. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost. Small and micro cap securities are subject to greater volatility than those in other asset categories. Value investing is subject to risk which may cause underperformance compared to other equity investment strategies. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, liquidity, prepayments, call risk, and other factors. Municipal securities are subject to the risks of adverse economic and regulatory changes in their issuing states.

The material contained on this site has been issued by DFA Australia Limited (AFS Licence No.238093, ABN 46 065 937 671).

Investors should also consider the Product Disclosure Statement (PDS) and the target market determination (TMD) that has been made for each financial product either issued or distributed by DFA Australia Limited prior to acquiring or continuing to hold any investment. Go to dimensional.com/funds to access a copy of the PDS or the relevant TMD. Any opinions expressed in this material reflect our judgement at the date of publication and are subject to change.

Nothing on this website shall constitute or serve as an offer to sell products or services in any country or jurisdiction by any Dimensional global firm. For informational purposes only. All information is given in good faith and without warranty and should not be considered investment advice or an offer of any security for sale.

Eugene Fama is a member of the Board of Directors of the general partner of, and provides consulting services to, Dimensional Fund Advisors LP.

Robert Merton provides consulting services to Dimensional Fund Advisors LP.

Myron Scholes was an Independent Director of the Dimensional US Mutual Fund Board from 1981–2021.

Douglas Diamond is an independent director of the Dimensional ETF Trust and Dimensional's US Mutual Fund Boards. Dimensional's US Mutual Fund Boards refers to The DFA Investment Trust Company, DFA Investment Dimensions Group Inc., Dimensional Investment Group Inc., and Dimensional Emerging Markets Value Fund.