Dimensional Fund Advisors
] -- better known as DFA inside the industry -- is at risk of losing its edge to ETFs writes Marketwatch's
By gathering some $250 billion of AUM, DFA has taught investors to trust and bet in capital markets, writes Tuchman. But the article points out that every asset category offered by DFA is now also occupied by low-cost ETFs. Investors who used to have no choice but to invest in DFA products through DFA advisers can now build their on portfolios given the rise of ETFs.
Tuchman also writes that DFA has not always won in every asset category over the past five years. For instance, DFA's Emerging Markets Portfolio was outperformed by Vanguard MSCI Emerging Markets ETF.
Not in the article are comments made by DFA founder David Booth last month at the Tiburon CEO Summit. Booth told his fellow executives that he has no interest in getting DFA into the ETF game.
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