How does Dimensional Fund Advisors differ from other investment firms?

Dimensional Fund Advisors distinguishes itself from other investment firms through its unique investment approach and philosophy. Unlike traditional firms that attempt to outperform the market through active management and stock picking, Dimensional utilizes a science-based, systematic investment strategy rooted in academic research. The firm focuses on capturing the dimensions of higher expected returns by investing in asset classes that have demonstrated historical evidence of outperformance. They rely on market efficiency, diversification, and cost control rather than individual security selection. Furthermore, Dimensional emphasizes a long-term perspective, maintaining a disciplined approach rather than engaging in short-term market timing. They prioritize building diversified portfolios aligned with clients' goals and risk tolerances, incorporating their expertise in institutional investing and capital market research. By following these principles, Dimensional Fund Advisors enables investors to access the potential benefits of academic research and achieve their long-term financial objectives.