Benefits of Dimensional Funds/Vanguard

Retirement Planning Consultants discuss the benefits of dimensional funds and vanguard

Everyone has different retirement goals, and there are a variety of ways to reach them. In this post, we’ll review the benefits of Vanguard and Dimensional Funds. If you have additional questions, please let us know!  

Vanguard Benefits

Vanguard has plenty of notable benefits:  

  • Large mutual fund selection—Vanguard offers a collection of more than 3,100 transaction-fee mutual funds for investing. 
  • Commission-free stock, options and ETF trades—Vanguard offers commission-free online trades of ETFs.
  • Leader in low-cost funds—Vanguard doesn’t offer promotions or bonuses, so it keeps costs low.
  • Customer support—Vanguard’s customer support is available Monday-Friday, 8 a.m. – 9 p.m. (Eastern) and they’re available for email and website support.

Dimensional Fund Benefits

Like Vanguard, Dimensional Fund has its own set of unique benefits: 

  • Innovative researchInvestment strategies are based upon innovative financial market research by Nobel-prize winning economist Professor Eugene Fama of the University of Chicago, Professor Kenneth French of Dartmouth College, Nobel-prize winner Robert Merton of MIT as well as other academic researchers.
  • Dimensional controls and limits access to its fundsDimensional funds aren’t available to the general public. Instead, they’re only accessible through a Dimensional-approved firm. 
  • Internal fund costs are lowUsing a long-term investment strategy rather than switching for short-term market fluctuations keeps turnovers low. This way money doesn’t flow in and out of funds constantly. 
  • Broad diversificationDimensional assigns higher weights to funds (based on their size and value) that demonstrate higher expected returns.

If you’d like to learn more about Vanguard or Dimensional Fund Advisory, please reach out to us