Dimensional Fund Advisors
| File:Dimensional Fund Advisors Logo.svg | |
| Company type | Private |
|---|---|
| Industry | Finance |
| Founded | 1981 |
| Founders | David G. Booth Rex Sinquefield |
| Headquarters | Austin, Texas, United States |
Key people | David G. Booth (Executive Chairman) Dave Butler (Co-CEO) Gerard K. O'Reilly (Co-CEO) |
| Products | Money Management and Investment |
| AUM | Increase $794 billion (Sept 30, 2024)[1] |
Number of employees | 1,500+ (2024)[2] |
| Website | www |
Dimensional Fund Advisors, L.P. (branded Dimensional abbreviated DFA[3]) is a privately owned investment firm headquartered in Austin, Texas. Dimensional was founded in Brooklyn[4] in 1981 by David Booth, Rex Sinquefield and Larry Klotz. The company has 15 international offices in the U.S., Canada, U.K., Germany, Netherlands, Australia, Singapore, and Japan.[5] Dimensional maintains additional U.S. offices in Charlotte, North Carolina and Santa Monica, California.
The company's founders studied at the University of Chicago under Eugene Fama. Kenneth French is co-chair of the firm's investment research committee.[6] DFA's investment strategy is based on application of the efficient market hypothesis.[7] Dimensional was one of the earliest firms to offer passive investing and "runs the oldest small-cap index fund" in the United States.[8] However, the firm's versions of index funds have the flexibility to trade daily[9] and skew towards smaller company stocks and value stocks; They operate differently from most index funds which rebalance on specific dates and are weighted by market capitalization.[10] This strategy results in regulators, such as the SEC,[11] and some analysts[12][13][14] describing the funds as actively managed. The company offers equity and fixed income mutual funds, Exchange-traded funds, separately managed accounts, and model portfolios.
In 2009, Dimensional acquired SmartNest, a retirement planning computer software company.[15] Researcher Robert C. Merton left SmartNest's board after the purchase and became a Resident Scientist at Dimensional.[16][17][18]
In November 2020, the firm announced it was augmenting its strictly advisor-access[19] and institutional[20] only mutual fund business model by offering openly accessed exchange-traded funds.[21][22][23][24]
Board of Directors
[edit | edit source]Board of Directors of the general partner of Dimensional Fund Advisors LP:[25]
- David Booth
- Eugene Fama
- Kenneth French
- John "Mac" McQuown
- Gerard K. O'Reilly
- Dave Butler
Board of Directors, Dimensional Mutual Funds and ETFs, US:[26]
- Reena Aggarwal, Georgetown University
- Dave Butler, Co-CEO
- Douglas W. Diamond, University of Chicago
- Darrell Duffie, Stanford University Graduate School of Business
- Francis A. Longstaff, UCLA
- Gerard K. O'Reilly, Co-CEO & Co-CIO
- Abbie J. Smith, University of Chicago
- Heather E. Tookes, Yale School of Management
- Ingrid M. Werner, The Ohio State University
References
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- ^ William J. Bernstein (2002). The Four Pillars of Investing: Lessons for Building a Winning Portfolio. McGraw-Hill, Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value)., p. 103
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ John Rekenthaler (Nov 25, 2020) DFA Is Paying the Price for Its Conviction. Morningstar.com, accessed 19 March 2021
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