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You know, I never evaluated the individual growth vs value indexes for small caps, just the exploder vs the overall index. Small cap value does beat the exploder by a bit.
What I found interesting is that the after tax and sale of funds returns for exploder are higher than the small cap index funds. I would have expected the lesser trading index to produce better results here.
The Bernstein stuff is definitely an interesting read. However I come away feeling like I've just been exposed to an advertisement for DFA funds. I'd like to see the returns adjusted for the cost of the financial "expert" you need to hire to get access to these funds, and their after tax and sale returns vs vanguards.
One last question, regarding DFA's funds. Since they dont alwaysfollow the "traditional indexes" and instead use alternative ones, many of which (like the s&p 600) choose holdings by "committee" rather than a set of rules, doesnt that committee essentially become the fund "manager" and thence make it more a managed index than an unmanaged one? If so, then isnt the only difference between DFA funds and a managed fund are that the DFA funds only do their "management" quarterly or annually rather than daily?
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