Founded in 1981, Dimensional Fund Advisor offers investment solutions from different asset classes to institutional and individual investors, investment consultants and financial advisors. It boasts more than 1,000 investment professionals across 12 offices in North America, Asia, and Europe.
Dimensional had nearly $577 billion of assets under management as of Dec 31, 2017. For the past three decades, the company has been providing investment management strategies to clients. This Texas-based company invests in both domestic and foreign equities, fixed-income securities, retirement income funds, real estates and commodity markets.
Below we share with you three top-ranked Dimensional mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future.
DFA Tax-Managed U.S. Targeted Value Portfolio Inst seeks appreciation of capital and aims to minimize federal taxes charged on returns. It normally invests more than 80% of its assets in securities of domestic mid and small-cap companies. The fund returned 14.5% in the past year.
As of January 2018, DTMVX held 1,488 issues, with 0.79% of its assets invested in Toll Brothers Inc.
DFA Emerging Markets II seeks capital growth for the long run. DFETX invests all its assets in its master fund, the Emerging Markets Series of its “Trust” also known as DFA Investment Trust Company. DFA Emerging Markets II fund has a one-year annualized return of 32%.
DFETX has an expense ratio of only 0.34% compared with the category average of 1.40%.
DFA US Large Company seeks total investment return similar to that of the S&P 500 Index. DFUSX invests a minimum of 95% of its assets in securities of companies listed on the S&P 500 Index and tries to maintain a similar company weight. The fund may also invest in derivatives, including futures contracts and options on futures contracts for adjustment of market exposure. DFA US Large Company fund has a one-year annualized return of 20.1%.
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