Asked by Anonymous
Asked on 17 Jul 2019
Endowus and MoneyOwl are using dimensional fund advisors but what exactly is dimensional fund advisors and is it reliable?
Hi Anonymous, thanks for the question. I'm from MoneyOwl and we use Dimensional funds in our portfolio construction. Dimensional Fund Advisors is a global investment manager dedicated to implementing the great ideas in finance. Guided by a firm belief in markets, the firm builds and manages strategies to help investors pursue higher expected returns. An enduring philosophy, strong client commitment, and deep working relationships with leading financial academics underpin Dimensional’s approach and form the foundation for new strategies. Through the research of Eugene Fama and Ken French, along with those of other leading academics, Dimensional has concluded that there are observable and persistent premiums to be found in certain dimensions of return, which can be harvested to give above market returns over the long term. For equities, these premiums are in small caps, value and profitability. For fixed income, they are in term and credit. For more information, you can refer to: https://advice.moneyowl.com.sg/the-right-building-blocks/