Have you ever wondered how Dimensional Fund Advisors, one of the top Mutual Fund companies with over $600 billion in assets under management, continues to be a leader amongst the competition?
In 1981, David Booth founded Dimensional and pioneered small cap investing, creating efficient ways to invest in small company stocks. Fast forward 40 years and Dimensional is still a pioneer of investment markets and a top leader among mutual fund companies.
But what does that mean to investors? What value can small cap provide when compared to large cap? From 1926-2020, the growth of $1.00 invested in a small cap fund would now equal $32,817. The same $1.00 invested in a large cap fund (i.e., S&P 500) using the same time frame, would be valued at $10,937 — the small cap strategy returned more than 3x that of the large cap! **Note past returns cannot guarantee future returns.
Now you might be thinking, “that’s not a lot of money for over 94 years of investing”, but what if that one-time investment had been $1,000 or $10,000? Or $1,000 had been invested every year for 94 years?
By utilizing the investment philosophy “An Enduring Belief in the Power of Markets” Dimensional has been able to provide positive investment opportunities for those who understand and adhere to this strategy.
Those who work with The Ferber Group are fortunate enough to have access to Dimensional…and if you’re wondering how, you can add DFA to your investment portfolio, drop us a note – there is a reason why we utilize DFA for ourselves, our family, and our clients.