Dimensional Fund Advisors
Evidence-based and factor research from Dimensional Fund Advisors.
United States6 articlesLast published 12 Jun 2026
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Dimensional Fund AdvisorsEquities
How to Avoid Black Swans | Dimensional
Dimensional founder David Booth argues that broad diversification across thousands of stocks is the most effective defense against catastrophic portfolio losses, reframing "black swan" risk as manageable through asset allocation rather than an existential threat. He supports a long-term, disciplined approach by citing the asymmetric nature of equity returns—stocks can only fall 100% but can rise multiples—and the S&P 500's ~10% average annual return since 1926.
12 Jun 2026
Dimensional Fund AdvisorsEquities
Allocating Global Equities in a Taxable Account | Dimensional
Dimensional Fund Advisors research demonstrates that US-based investors in higher tax brackets can reduce tax drag by overweighting US equities in taxable accounts, driven by lower dividend yields and higher qualified dividend income percentages relative to international and emerging markets equities. The paper quantifies 2025 tax costs across DFAC, DFIC, and DFEM—showing that each 10% shift toward US equities reduces portfolio tax cost by approximately 3–5 basis points, even after accounting for the foreign tax credit.
12 Jun 2026
Dimensional Fund AdvisorsMulti-Asset
Lessons in Life and Investing with David Booth | Dimensional
Dimensional Fund Advisors founder and chairman David Booth discusses his core investment principles with Jake DeKinder, drawing parallels between sound investing habits and everyday life decisions. The video is part of Dimensional's "Life, Invested®" content series aimed at helping advisors communicate investment fundamentals to clients.
12 Jun 2026
Dimensional Fund AdvisorsEquities
The Power of Human Ingenuity | Dimensional
Dimensional's founder David Booth argues that human ingenuity is the fundamental driver of long-term market returns, drawing on historical S&P 500 performance (averaging ~10.4% annually since 1926) and the market's resilience through events like COVID-19 and 2024's bearish consensus forecasts. The piece advocates for broadly diversified, disciplined, low-cost global investing as the optimal way to capture the rewards of innovation and human problem-solving rather than relying on market predictions.
12 Jun 2026
Dimensional Fund AdvisorsEquities
David Booth in the Financial Times: Why the Wisdom of the Market Crowd Beats AI | Dimensional
Dimensional's founder David Booth argues that market prices, as the aggregated judgment of millions of participants incorporating all available information, are a more reliable pricing mechanism than AI models such as large language models. He invokes the efficient market hypothesis and nearly a century of ~10% annualized U.S. equity returns to support a passive, market-price-accepting investment approach over AI-driven stock selection.
12 Jun 2026
Dimensional Fund AdvisorsEquities
Investing Is a Science, an Art, and a Practice | Dimensional
Dimensional Fund Advisors founder David Booth outlines the firm's core investment philosophy, arguing that successful investing integrates empirical financial science (diversification, factor premiums, the failure of conventional active management) with the art of portfolio engineering and flexible execution. He draws a parallel between disciplined long-term investing and preventive healthcare, emphasising the role of trusted advisors and consistency in achieving financial goals.
12 Jun 2026