Last September, I wrote a piece for Canadian MoneySaver called An ETF Portfolio With Added Dimension. The article looked at the strategies used by Dimensional Fund Advisors, “the best money management firm that most people have never heard of.” The portfolio I put together for that article became the Über-Tuber — as in “the ultimate Couch Potato” — which you’ll find on my page of Model Portfolios.
If you’re not familiar with Dimensional Fund Advisors, that’s not surprising: the firm keeps a low profile, and its funds are offered only through a select group of advisors who must first undergo extensive training. DFA’s investing strategies are based on the academic work of Eugene Fama and Kenneth French, whose research demonstrated that value stocks and small-cap stocks have historically delivered higher returns than the overall market. (For more details, see the DFA website and my own post, Where Do Returns Come From?) The point of my article was to suggest a way for do-it-yourself investors to use Dimensional’s passive strategies with ETFs.
I later learned that the article made the rounds among DFA advisors,