The following is provided by Dimensional Fund Advisors. As a member of probably the last generation to grow up with a rotary dial phone in the house, I can still recall when there was clear distinction between phones and computers. Phones were utilitarian devices, while computers were gateways to limitless knowledge and entertainment.1 Nowadays, that distinction has dissolved. For many consumers, phones arguably obviate the need for a personal computer. Similarly, evolution in finance has etched away the apparent cut-and-dried distinction between active and passive investing. The current land ..read more

The following is provided by Dimensional Fund Advisors ..read more

The following is provided by Dimensional Fund Advisors. After touching record highs in early January, US stocks1 have slumped, and investors have been confronted with worrisome headlines2 in the financial press: “Inflation Hits Fastest Clip Since ’82” —Gwynn Guilford, Wall Street Journal, January 13, 2022 “Economists Cut Back Growth Forecasts as Threats Pile Up” —Harriett Torry and Anthony DeBarros, Wall Street Journal, January 18, 2022 “Giant Stock Swings Send Some Into Bear Territory” —Gunjan Banerji and Peter Santilli, Wall Street Journal, January 18, 2022 “Markets Drop as Turbulent Tradin ..read more

The following is provided by Dimensional Fund Advisors. Recent conflict between Russia and Ukraine is an important reminder that geopolitical risk is a part of investing in global markets. Navigating geopolitical events requires expertise and flexibility. Dimensional’s systematic active approach is designed to adjust to new information in real time, including information about geopolitical events and their potential repercussions for markets. Global Developments and Their Impact Geopolitical events like military or economic conflicts can affect stock markets in many ways. These events are gene ..read more

The following is provided by Dimensional Fund Advisors ..read more

The following is provided by Dimensional Fund Advisors ..read more

The following is provided by Dimensional Fund Advisors ..read more

The following is provided by Dimensional Fund Advisors ..read more

The following is provided by Dimensional Fund Advisors. Many investors may think a market high is a signal stocks are overvalued or have reached a ceiling. But they may be surprised to find out that the average returns for the S&P 500 Index one, three, and five years after a new market high are similar to the average returns for the index over any one-, three-, or five-year period. In looking at all 1,000-plus monthly closing levels between 1926 and 2020 for the S&P 500 Index, 30% of the monthly observations were new market highs. After those highs, the average annualized compound retu ..read more

The following is provided by Dimensional Fund Advisors. Systematic, or factor-based, investing has become quite common in equities. Investor adoption in fixed income has lagged, at least when measured by the assets under management (AUM) in mutual funds and ETFs. At the end of 2020, $1.35 trillion in equity fund AUM1 was categorized as strategic beta by Morningstar. By contrast, just $14.36 billion of fixed income funds had the same designation. In Dimensional’s case, systematic fixed income is hardly new; we have been managing fixed income portfolios since 1983. Our approach to fixed income ..read more