3-Dimensional Mutual Funds Crushing It Right Now
If you’ve been poking around for investments that don’t just exist but actually perform, you’ve probably seen the name Dimensional Fund Advisors pop up. And for good reason.
These folks have been at the game since 1981, taking big, nerdy academic research and turning it into real-world investing wins. Fast-forward to today, they manage nearly $1.3 trillion in assets across more than 15 offices worldwide.
They don’t just throw money at the big players. They invest in everything from U.S. and global stocks to bonds, real estate, and even commodities. But here’s where it gets interesting.
They’ve got three funds that are currently ranked #1 by Zacks Mutual Fund Rank (that’s “Strong Buy” status), and they’ve been outpacing their peers.
DFSIX: Big on Sustainability, Bigger on Returns
The DFA US Sustainability Core (DFSIX) fund focuses on small-cap U.S. companies with strong profitability and low prices, plus it screens for sustainability, as they’re considering environmental impact too.
The fund’s three-year annualized return is 19.1% which is quite impressive. Out of the 1,952 holdings, a solid 5.5% is parked in Apple stock. So, if Apple’s doing well, this fund gets a nice little boost.
DFVEX: A Vector for Growth
Next up is the U.S. Vector Equity Portfolio (DFVEX). This one plays in a similar small-cap, value-stock space but without the sustainability filter. It’s the “go big, but be smart about it” strategy, spreading money across a huge range of smaller, cheaper, and more profitable U.S. companies.
Its three-year annualized return is 14%, and the expense ratio is just 0.27%, meaning you keep more of what it earns.
DGTSX: Balanced for Any Market Mood
Lastly, the DFA Global Allocation 25/75 Portfolio (DGTSX) is for people who like a mix of stocks and bonds. Talking about the fund’s portfolio, 25% goes into equities, and 75% into fixed-income securities.
This balance helps smooth out the ride when the stock market’s being, well, the stock market.
Its three-year annualized return is 7%, which might not sound huge next to DFSIX’s 19%, but remember, this one’s built to be steady.
Fund manager Joseph F. Kolerich has been steering this ship since 2012, so there’s some serious experience behind the wheel.
The Takeaway for Everyday Investors
If you like the idea of small companies, value pricing, and a mix of smart diversification, Dimensional’s top-ranked funds are worth a look.
Just remember, returns aren’t guaranteed, markets shift, and it’s always best to match your investments to your own goals.
