Who is DFA? (Dimensional Fund Advisors)

DFA is one of our favorite fund providers. The firm was started by David Booth of The University of Chicago Booth School of Business and has quietly become one of the largest mutual fund companies in the world.

Dimensional Fund Advisors has an academic approach to investing. They start with an indexing approach but take it to the next level. Opposed to iShares or Vanguard, which are great passive fund providers, DFA is not bound to an index and thus can be patient with their trading. Furthermore, many DFA Funds have more texture than their index counterparts by investing in smaller and more 'valuey' companies; further exploiting the size and value premiums.

To trade DFA Funds, an advisor must first attend conferences and be approved by Dimensional Fund Advisors. At The Financial Planning Company, we can pick any fund provider in the world and in our opinion, DFA is at the top of the list.

Check out this video to get a peek inside Dimensional Fund Advisors.