Wednesday 22 July 2015

Cloning DFA

DFA offers very popular small-cap value funds. Having Nobel laureates and other distinguished professors in their board of directors, they base their strategy on research and the small-cap funds are tilted a bit, not just based on the companies' market capitalization.
Vanguard, on the other hand, uses simple passive indexing strategy that tracks the market capitalization.
Here is an interesting article that clones the DFA fund by using a combination of low-cost passive funds.

Cloning DFA

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