I think this one graph shows why we use DFA’s methodology. I believe DFA’s evidence-based approach, has worked, is still working, and should work in the future. In investing many costs are hidden, and DFA’s low turnover approach handily beats most higher-cost investment options (even if that cost is hidden in portfolio turnover from index reconstitution and active portfolio management based on guessing and predicting). With nearly 4 decades of applying their methods, I think tomorrow looks bright for DFA shareholders.
