How DFA Operates What does DFA base the holdings on in the ~35 mutual funds they offer?
Non-commercial data in the Center for Research on Securities Prices (CRSP) at The University of Chicago, along with good statistics to help trigger when a trade should occur. In other words, their funds don’t incur the cost of a trade until there’s enough change to make a statistical difference. DFA’s mutual fund costs are similar to those of index funds; i.e., ~0.2 percent for large companies, with the cost increasing as one moves toward smaller stocks, international stocks and emerging market stocks. However, they plow some of their savings on small stock trading, etc. back into things that will make a difference in performance. What are these things that make a difference? I don’t know the specifics, as DFA is somewhat coy for competitive reasons. Nevertheless, I would surmise that it’s things like the market representations in international funds and the split point on the value funds. DFA’’s Target Customers. DFA started by calling only on institutional money managers, organizatio
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- How DFA Operates What does DFA base the holdings on in the ~35 mutual funds they offer?
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