What are Dimensional funds?

Markets go up and down, and dimensional funds provide a steady stream of income in your retirement. Dimensional funds aren’t available to the general public. Instead, investors work with dimensional-approved firms like Retirement Plan Consultants.

Benefits of Dimensional Funds in your Retirement Plan

1. Impressive Investment Performance

Dimensional’s investment strategies have delivered impressive investment performance  compared to mutual fund competitors and to relevant market benchmarks.  

2. Evidence Based Investment Approach

Dimensional carefully studies markets in order to develop their investment strategies, and they’ve done so for the past 30 years . Their research discovered that smaller, lower-priced value stocks have higher risks and greater expected returns than larger and higher-priced growth stocks. Dimensional uses this information to its advantage by “tilting” its portfolios toward market segments that offer higher expected returns. 

3. Risk Management Strategies

Dimensional implements strategies to reduce risks that weaken investment performance and collect higher expected returns associated with smaller and value-priced equities. In addition, diversification within each Dimensional fund helps to dodge avoidable risks such as holding too few securities or betting heavily on specific industries or regions. 

4. Efficient Trading

Dimensional’s trading is efficient. It’s spent more than 30 years developing its trading infrastructure, so it has a well-known presence in global financial markets. Dimensional portfolios are unique and aren’t held to traditional benchmarks, so the firm positioned its holdings to maximize negotiating strength.  

5. Low Costs

Dimensional funds have low expense ratios, which are much lower than the industry average. 

Visit Dimensional’s public site at www.dfaus.com if you want to explore Dimensional funds in closer detail.