Dimensional Fund Advisors

There is a new model of investing: a model based not on speculation but on the science of capital markets. Decades of research guide the way. The mission of Dimensional Fund Advisors is to deliver the performance of capital markets and increase returns through state-of-the-art portfolio design and trading.

Financial economists lead the way in understanding risk and return in securities markets. Working with some of the academic community's most innovative and respected financial economists ensures that Dimensional is always researching tomorrow's solutions today. A continuous feedback loop makes this possible:
 

Academic leaders in the field of asset pricing find new sources of risk and return in advance of the industry.

Dimensional engineers strategies and brings client feedback to these financial economists and researchers for further testing and enhancements.

Empirical research becomes more relevant to practical investing, and practical investing is backed by solid theory and economic knowledge.

This is a continuous process to which they commit substantial resources, bringing increasing relevance and new opportunities to the development of science and practice. Increased understanding continually benefits Dimensional investors.

Successful investing means not only capturing risks that generate expected return but reducing risks that do not. Avoidable risks include holding too few securities, betting on countries or industries, following market predictions, and speculating on "information" from rating services. To all these, diversification is the antidote. It washes away the random fortunes of individual stocks and positions your portfolio to capture the returns of broad economic forces.

Dimensional diversifies not only in the amount of securities it holds (thousands) but in the range of capital market strategies it explores and develops. In this way, investors focus on the factors that drive investment returns and reduce excess and undesirable risk.