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Evidence Based Investing

Independence To Choose From The Best Of The Best

We don’t receive any perks, commissions, kick-backs, or benefits from any other firm or entity. Because of this, we have no incentive to recommend investments from one provider over another.

Does Your Risk Score Match Your Investment Portfolio?

This means we’re free to use the entire marketplace of investments to build your investment portfolio. While we’re able to recommend anything, we stay true to the following core investment strategy of:

  1. Keeping investment fees & expenses ultra-low
  2. Getting massive diversification among securities and asset classes
  3. Reducing turnover as much as possible
  4. Tilting our investment portfolios towards dimensions of higher expected returns
  5. Removing human interference from security management

Very few investment companies embrace the same core investment strategies we practice. Fortunately for us, we found one such company that does – Dimensional Fund Advisors (DFA).

Dimensional Fund Advisors believes in keeping fees low, turnover low, and diversification as broad as possible! They also believe in the science of investing.

The “science” of investing is based on both long-term and broad market evidence, factors which undeniably have produced excess units of return over time.

DFA “tilts” their mutual funds towards those market dimensions which have higher expected long-term returns. Most importantly, they don’t allow humans to interfere and “mess up” the investment returns associated with entire classes of securities.

Dimensional Funds is the 8th largest mutual fund company in the country, which is surprising, because they don’t spend money on marketing. In fact, you’ve probably never heard of DFA or Dimensional Fund Advisors, yet the way they manage investments is truly unique.

Since our only objective is helping our clients achieve their financial goals as efficiently as possible, DFA mutual funds tend to be on our short list of investing tools.

Three Important Things To Know About DFA Funds:

  1. We’re Not Married To Them. Each quarter, we put every mutual fund through the fi360 investment scrubbing process each quarter. In areas where Dimensional funds fall short, we find suitable alternatives. We strive to help our clients achieve what their financial plans require. As such, we cannot be “married” to any investment or mutual fund company.
  2. We’re Not Exclusive. While a large number of our portfolios are built with DFA mutual funds, we also use several ETF’s and other mutual funds to round out asset classes we feel DFA may not fit our client needs best.
  3. They Don’t Pay Us A Dime. We have absolutely zero financial ties (or otherwise) with DFA.

Learn more about DFA funds in this article from Barron’s. They do a great job of delivering the investment strategies we need to help our clients reach their financial goals.