Index Fund Investing

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Dimensional Fund Advisors and Vanguard (Part II): Dimensional’s Advantages

As I discussed in a previous article, Dimensional and Vanguard are similar but are different in some key respects.  While neither fund family relies on forecasting or individual security analysis, Vanguard funds are index funds while Dimensional funds are not. Both fund families are great options for investors.  However, Dimensional provides several advantages that may…


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Dimensional Fund Advisors and Vanguard (Part I): What’s the Difference?

Vanguard and Dimensional Fund Advisors (Dimensional) both offer mutual funds that provide investors with broad exposure to various asset classes at a very low cost. However, there are important differences between the two fund families. But first, let’s start with a bit of history… Vanguard introduced the Vanguard 500 fund in 1975, becoming one of…


Index Fund Investing: Is it Really That Simple?

Index fund investing is as popular as ever. In 2014, Vanguard alone recorded record mutual fund inflows totaling $216 billion.  Investors are catching on to the benefits of index and other passively managed funds – benefits that include lower costs, broader diversification, lower turnover, and greater transparency. But, as Wall Street Journal columnist and author…