There is no getting around the fact that Dimensional Fund Advisors manage and structure their portfolios based on the different dimensions of expected returns. The quantitative tilts and portfolio selection is what their reputation and academic research was built on. However there are periods of time where some of the premiums do not show themselves. Such is the case for the value premium in the US stock market in the current period of time. What does all of this mean for investors? While a positive value premium is never guaranteed, the premium has historically had a greater chance of being positive the longer the time horizon observed. Meaning in short, the spoils will go to the patient, long term, buy and hold investor staying disciplined to the evidence based investing approach.
Read more about this topic and portfolio construction plus more in the following article produced by the bright minds at Dimensional Fund Advisors.
Click HERE to read.
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