Originally Posted by nun
I'm completely biased in my analysis here, but I've had success with a couch potato portfolio of index funds. RIP looks way too complicated to keep an eye on overall asset allocation easily. I like DFA's idea that steady strategic investing, rather than tactical jumping about is the way to go.....but why do you need them to do that...and you can only buy their funds through financial advisers. More fees there. They are repackaging indexing, but saying hey we look for value too and like small caps.....you can do that with any low cost index fund company
1) Wow that's really slicing and dicing.
2) If DFA was a retail fund company ie selling to the public I would like it better, why do the hide behind those financial advisors.
3) Use broad index funds, it's simpler and cheaper.
I agree. I read this book and enjoyed it, but to me, the asset allocation model is a bit complicated. For example, take emerging mkts. Vanguard's total International fund is comprised of about 25% emerging mkts. If 30% of your EQUITY portfolio is in International, you are well represented in this area. With bonds, Vanguard recommends their Intermediate Bond fund as the sweet spot. This will also give you the safety of US treasuries.
With respect to Gas and utilities... they are included in Vanguard's total stock market Index fund- at least solid companies that produce and manufacture. If you decide to purchase a separate fund for emerging and commodities, you best know what you are doing.