facebookWant to invest 1 with SRS: LionGlobal US500 Index Fund or DFA Global Core Equity Fund (cheaper valuation, smaller cap, higher profitability). True that returns can't match an index fund over long run? - Seedly

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Anonymous

28 Nov 2021

General Investing

Want to invest 1 with SRS: LionGlobal US500 Index Fund or DFA Global Core Equity Fund (cheaper valuation, smaller cap, higher profitability). True that returns can't match an index fund over long run?

I'm assuming that LionGlobal US500 Index Fund replicate the S&P 500 Index, vs DFA tilts towards companies with cheaper valuation, smaller cap, higher profitability. I always read that index will run better over long run. Is that true?

Discussion (2)

What are your thoughts?

Tan Choong Hwee

Tan Choong Hwee

29 Nov 2021

Level 14·Investor/Trader at Home

Do note that the LionGlobal fund is tracking S&P 500, but the DFA fund is investing in global stocks with value and small cap tilt. They are not apple-to-apple comparison.

A better comparison would be DFA fund vs its benchmark MSCI World Index, which you can see from DFA fund webpage:

https://eu.dimensional.com/gb-en/funds/global-c...

You can see that DFA fund performance tracks quite closely to MSCI World Index, slight over-performance for short term, and slight under-performance for longer term, due to value investing is returning as better performing in recent years.

If you want to compare LionGlobal fund vs DFA fund, a better comparison would be S&P 500 vs MSCI World Index:

https://ystat.org/comparison.html

Again, each performs better in some years and worse in others.

If you don’t have time to research stock, then yea index MIGHT be better~

if someone has bought tesla or apple 10 years ago, he/she already far ahead than index fund investor~ but can you be the lucky or “smart” one

*More than 90% of the fund manager has fail to beat the index after 30 years by research

So no right or wrong answer, if one are confident to beat the index, then try to do stock picking:)

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