Copyright © 2004 by The New York Times Company. Reprinted for web use with permission. Reprinted by Scoop ReprintSource 1-800-767-3263.

Reading the Index to Beat the Index

By Howard Isenstein

The New York Times

January 2004

Index funds mirror the market, and they appeal to investors who realize that most fund managers do not beat the market for extended periods. But by tweaking the mathematical approach taken by index funds, Dimensional Fund Advisors has often been able to beat them.

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This article contains the opinions of the author(s) and those interviewed by the author(s) but not necessarily Dimensional Fund Advisors or DFA Securities Inc., and does not represent a recommendation of any particular security, strategy or investment product. The opinions of the author(s) are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. This article is distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. Past performance is not indicative of future results and no representation is made that the stated results will be replicated.

Dimensional Fund Advisors is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (310) 395-8005; on the Internet at www.dimensional.com; or, by mail, DFA Securities Inc., c/o Dimensional Fund Advisors, 1299 Ocean Avenue, 11th Floor, Santa Monica, CA 90401.

Mutual funds distributed by DFA Securities Inc.

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