Any way to check? Since they are only sold by DFA certified advisers, doesn't it make them harder to liquidate?
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Albert Tan
06 Jan 2021
Financial Literacy & Solutions at MoneyOwl
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Hi Paul,
While trading volume is important to look at when investing in stocks, ETFs, or closed-ended funds that are listed on an exchange, trading volume is not relevant when we are investing in DFA’s funds (unit trusts).
When there are redemptions by investors of unit trusts, the manager would simply sell some of their assets to meet these redemption requests. In the past 40 years, DFA has never failed to meet redemption requests.
Besides, the fact that DFA distributes their funds through certified advisers makes huge redemptions very unlikely as advisers would provide the behavioural guardrails for their clients during a market downturn, reducing the possibility of panic selling.