A general framework based on potential benefits and drawbacks can be used to assess the merits of a new investment opportunity.
A sensible approach is to evaluate the opportunity through the lens of the asset’s intended role in the portfolio.
Assessing investments through this process can help determine whether, and how much, to allocate in one’s portfolio.
Financial innovation provides investors with a seemingly endless supply of new investment options. Butthe process of evaluating the merits of these investments remains the same even as the names change. Adopting a new component in one’s asset allocation represents a tradeoff that should carefully balance the expected benefit vs. the cost of its inclusion. The following framework highlights benefits investors may seek as well as potential drawbacks—a checklist that applies to any investment opportunity.
STARTING ON A ROLE
Properly evaluating whether something belongs in your portfolio begins with specifying the role it is expected to play. These roles come down to a) increasing your expected return or b) helping manage risk.
If the objective is to increase expected returns, what is the case for the asset in question accomplishingthat? It is easy to link a positive expected return with equities, for example, as stock ownership gives you a claim on companies’ future cash flows. Similarly, bondholders expect to receive periodic interestpayments and the return of their principal as stipulated in the bond’s covenant. But an asset that lacks a sound foundation for delivering a positive expected return should give investors pause, regardless of its past performance.
Investors should also be wary of making assessments about expected returns in asset classes with limited data. Newer products with shorter track records give investors less information about what to expect in an asset class. Nonpublicly traded investments may pose additional hurdles due to a lack of timely market-based performance data. And, finally, the age-old difficulty in distinguishing between luck and skill is amplified in more- volatile asset classes.
Expected return may take a back seat in the case of an asset that helps manage risk. Professor Ken French defines risk as uncertaintyaboutlifetimeconsumption. This uncertainty stems from many sources, including market downturns, inflation, and interest rate changes, to name a few. Risk- management assets should offer a robust way to mitigate the contributions from one or more of these contributors touncertainty.
Investors should avoid “missing the forest for the trees” when hedging risk. For example, an asset class whose returns are correlated with inflation but are much more volatile than changes in the Consumer Price Index may not be an effective risk-management tool. You may be hedging unexpected inflation but still increasing uncertainty over future consumption due to the volatility.
Investments may also reduce portfolio risk if they increase diversification. But how should investors assess the diversification benefit? Although it is common to look at noisycorrelationestimates, investors may want to ask whether the investment expands their opportunity set. If you’re only invested in US stocks, thenexpanding the portfolio globally improves diversification. The global stock market is worth around $80 trillion.1 Global bond markets tack on another $125 trillion.2 This is important context for the size of potential additions to your asset allocation and may be a helpful starting point for determining how much to invest in the asset.
THE COST OF DOING BUSINESS
The benefit of adding something to your portfolio must outweigh the drawbacks.
An obvious drawback is high costs. Fees and expenses are typically transparent to investors, but it’s important to be aware of differences in fee structures. Traditional equity and fixed income mutual funds and ETFs usually use a flat percentage fee based on assets under management. Other asset classes may include performance fees. These structures mayincentivizemanagerbehavior in ways that are inconsistent with your investment objectives.
A less-transparent cost (at least on expectation) is the potential for adverse selection. Whether we’re talking about the latest initial public offering (IPO) or a private equity placement, the most desirable allocations will have a line out the door. Investors without access to the most desirable investments will be left with suboptimal selections. This challenge is compounded if high minimum-investment thresholds are imposed, which may preclude diversified exposure across investments.
An investment’s potential is more likely to be beneficial if you can stick with it through thick and thin. This is where complexity becomes a drawback. All investments go through periods of disappointing performance.The extent to which investors can endure these periods and stick with the investment plan may depend onhow well they understand what drove performance. Transparency and trust tend to be highly correlated. All else equal, investors in opaque strategies or ones with less operational history may be less inclined to persevere in times of uncertainty.
Finally, there’s the cost of wondering about the road not traveled. Adding a new investment means giving up some of what you already have. That presents the potential for regret if the asset you’re giving up goes on a strong performance run subsequent to the change. For example, many investors were tempted to jettison value portfolios in the wake of value stocks’ decade-long underperformance vs. growth prior to 2021. Replacing value right before its historic run in 2021 and the first half of 2022 may haunt investors for years to come.
REAL-WORLD EXAMPLES
We can put this framework to use with a few examples of notable alternative asset classes.
Bitcoin
The media fanfare around bitcoin has left many investors wondering if they should dip their toe in the cryptocurrency waters. A few aspects of our evaluation framework are instantly relevant.
Let’s start with the expected-return criterion. Little attention would be paid to bitcoin were it not for its meteoric rise in value in recent years.3 But it’s unclear why holding bitcoin should have a positive expected return. Bitcoin offers no claim on future cash flows, as one gets with a stock, and no promised interest payments, as one is entitled to with a bond. Future returns from simply holding bitcoin dependon it appreciating in value vs. another asset—the definition of a speculative investment.
It is difficult to imagine uncertainty over lifetime consumption beingreduced by an asset that has, multiple times, fallen in value by double-digitpercentages in a single day.
It’s also not clear bitcoin or other cryptocurrencies can help investors manage risk. Using Professor French’s definition of risk, it is difficult to imagine uncertainty over lifetime consumption being reduced by an asset that has, multiple times, fallen in value by double-digit percentages in a single day.
Another consideration is the size of the bitcoin market, which, at around $384 billion,4 is about 0.2% of the market value of global stock and bond markets. To put that in perspective, a $1 million portfolio composedof global stocks, global bonds, and bitcoin at market-cap weights would hold only about $2,000 in bitcoin.
Managed Futures
Managed-futures funds typically hold diversified futures contracts tied to various stock and bond indices. These strategies are often touted as diversifiers for traditional asset classes. While they may have low correlations with traditional equity portfolios, it is not because they expand an investor’s opportunity set; futures contracts are derivatives whose value is determined by the performance of the underlying asset. Derivatives may alter the so-called payout function of the asset, such as reducing downside exposure by forfeiting some potential upside, but they generally do not offer exposure to asset classes outside of traditional portfolio components.
Costs are another consideration with managed-futures strategies. An academic study5 on managed-futures funds reported a gap between before-fees and after-fees measures of average returns of 4.52 percentage points per year. That’s a lot of performance being squeezed out before it can land in an investor’s hand.
Thematic Funds
Thematics represent a broad class of investment strategies that generally target themes, providing exposure to narrow subsets of the market, such as individual sectors or companies touted as potentialbeneficiaries of long-term economic trends.
Proponents of thematic investing may subscribe to a high-expected-return story rooted in the premise that these investment styles are ahead of the curve. This is essentially a market-timing proposition, and thehistorical data are not kind to the success of market timing. Thematic funds therefore may not increase expected returns for investors already possessing exposure to the equity market.
It’s also not clear thematic strategies increase diversification. For example, one thematic ETF focuses on companies expected to benefit from COVID-19-related paradigm shifts (work from home, attention to health, etc.). These aren’t new sectors—investors with globally diversified equity portfolios are likely holding these stocks already.
ASKING THE RIGHT QUESTIONS
Type I errors in asset allocation changes are expensive. Replacing an investment you once believed in with a shiny new product that doesn’t pan out is potentially detrimental to achieving your financial goals. A consistent evaluation framework helps investors mitigate the chance of this regret. These evaluation criteria can also be customized to individual preferences. After all, considerations like liquidity needs and risk tolerance often vary through an investor’s lifetime.
At the end of the day, this framework is about asking the right questions, which, as researchers will tell you, is just as important as the answer itself.
Based on MSCI All Country World IMI Index as of December 31,
Based on statistics from the Bank for International Settlements (BIS) as of September
Cryptocurrency performance in 2022 has me wondering about the shelf life of this
Market capitalization from CoinMarketCap as of June 29,
Ken French is a member of the Board of Directors of the general partner of, and provides consulting services to, Dimensional Fund Advisors LP.
The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Dimensional to be reliable and Dimensional has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations.
Unauthorized reproduction or transmitting of this material is strictly prohibited. Dimensional accepts no responsibility for loss arising from the use of the information contained herein.
This material is not directed at any person in any jurisdiction where the availability of this material is prohibited or would subject Dimensional or its products or services to any registration, licensing or other such legal requirements within the jurisdiction.
“Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., Dimensional Ireland Limited, DFA Australia Limited, Dimensional Fund Advisors Canada ULC, DimensionalFund Advisors Pte. Ltd, Dimensional Japan Ltd. and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.
Risks
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value.Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.
UNITED STATES
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value
Dimensional Fund Advisors does not have any bank affiliates.
CANADA
These materials have been prepared by Dimensional Fund Advisors Canada ULC. The other Dimensional entities referenced herein are not registered resident investment fund managers or portfolio managers in Canada.
This material is not intended for Quebec residents.
Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise noted, any indicated total rates of return reflect the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or other distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
AUSTRALIA
This material is issued by DFA Australia Limited (AFS Licence No. 238093, ABN 46 065 937 671). This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person. Accordingly, to the extent this material constitutes general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. Investors should also consider the target market determination that has been made for each financial product either issued or distributed by DFA Australia Limited prior to proceeding with any investment. Go to au.dimensional.com/funds to access a copy of the relevant target market determination. Any opinions expressed in this material reflect our judgement at the date of publication and are subject to change.
NEW ZEALAND
This material is issued by DFA Australia Limited (incorporated in Australia, AFS License No. 238093, ABN 46 065 937 671). This material is provided for information only. This material does not give any recommendation or opinion to acquire any financial product or any financial advice product, and is not financial advice to you or any other person. No account has been taken of the objectives, financial situation or needs of any particular person.Accordingly, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives,financial situation and needs. Investors should also consider the Product Disclosure Statement (PDS) and for the Dimensional Wholesale Trusts the target market determination (TMD) that has been made for each financial product or financial advice product either issued or distributed by DFA Australia Limited prior to acquiring or continuing to hold any investment. Go to au.dimensional.com/funds to access a copy of the PDS or the relevant TMD. Anyopinions expressed in this material reflect our judgement at the date of publication and are subject to change.
WHERE ISSUED BY DIMENSIONAL IRELAND LIMITED
Issued by Dimensional Ireland Limited (Dimensional Ireland), with registered office 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland. Dimensional Ireland is regulated by the Central Bank of Ireland (Registration No. C185067).
WHERE ISSUED BY DIMENSIONAL FUND ADVISORS LTD.
Issued by Dimensional Fund Advisors Ltd. (Dimensional UK), 20 Triton Street, Regent’s Place, London, NW1 3BF. Dimensional UK is authorised and regulated by the Financial Conduct Authority (FCA) – Firm Reference No. 150100.
Dimensional UK and Dimensional Ireland do not give financial advice. You are responsible for deciding whether an investment is suitable for your personal circumstances, and we recommend that a financial adviser helps you with that decision.
Dimensional UK and Dimensional Ireland issue information and materials in English and may also issue information and materials in certain other languages. The recipient’s continued acceptance of information and materials from Dimensional UK and Dimensional Ireland will constitute the recipient’s consent to be provided with such information and materials, where relevant, in more than one language.
NOTICE TO INVESTORS IN SWITZERLAND: This is advertising material.
JAPAN
For Institutional Investors and Registered Financial Instruments Intermediary Service Providers.
This material is deemed to be issued by Dimensional Japan Ltd., which is regulated by the Financial Services Agency of Japan and is registered as aFinancial Instruments Firm conducting Investment Management Business and Investment Advisory and Agency Business.
Dimensional Japan Ltd.
Director of Kanto Local Finance Bureau (FIBO) No. 2683
Membership: Japan Investment Advisers Association
SINGAPORE
This material is deemed to be issued by Dimensional Fund Advisors Pte. Ltd., which is regulated by the Monetary Authority of Singapore and holds a capital markets services license for fund management.
This advertisement has not been reviewed by the Monetary Authority of Singapore, and should not be shown to prospective retail investors. FOR PROFESSIONAL INVESTORS IN HONG KONG
This material is deemed to be issued by Dimensional Hong Kong Limited (CE No. BJE760) (“Dimensional Hong Kong”), which is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.
This material should only be provided to “professional investors” (as defined in the Securities and Futures Ordinance [Chapter 571 of the Laws of Hong Kong] and its subsidiary legislation) and is not for use with the public. This material is not intended to constitute and does not constitute marketing of the services of Dimensional Hong Kong or its affiliates to the public of Hong Kong. When provided to prospective investors, this material forms part of, and must be provided together with, applicable fund offering materials. This material must not be provided to prospective investors on a standalone basis.Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice.
Neither Dimensional Hong Kong nor its affiliates shall be responsible or held responsible for any content prepared by financial advisors. Financial advisors in Hong Kong shall not actively market the services of Dimensional Hong Kong or its affiliates to the Hong Kong public.
Does [fill in the blank] Belong in My Portfolio?
KEY TAKEAWAYS
Financial innovation provides investors with a seemingly endless supply of new investment options. Butthe process of evaluating the merits of these investments remains the same even as the names change. Adopting a new component in one’s asset allocation represents a tradeoff that should carefully balance the expected benefit vs. the cost of its inclusion. The following framework highlights benefits investors may seek as well as potential drawbacks—a checklist that applies to any investment opportunity.
STARTING ON A ROLE
Properly evaluating whether something belongs in your portfolio begins with specifying the role it is expected to play. These roles come down to a) increasing your expected return or b) helping manage risk.
If the objective is to increase expected returns, what is the case for the asset in question accomplishingthat? It is easy to link a positive expected return with equities, for example, as stock ownership gives you a claim on companies’ future cash flows. Similarly, bondholders expect to receive periodic interestpayments and the return of their principal as stipulated in the bond’s covenant. But an asset that lacks a sound foundation for delivering a positive expected return should give investors pause, regardless of its past performance.
Investors should also be wary of making assessments about expected returns in asset classes with limited data. Newer products with shorter track records give investors less information about what to expect in an asset class. Nonpublicly traded investments may pose additional hurdles due to a lack of timely market-based performance data. And, finally, the age-old difficulty in distinguishing between luck and skill is amplified in more- volatile asset classes.
Expected return may take a back seat in the case of an asset that helps manage risk. Professor Ken French defines risk as uncertainty about lifetime consumption. This uncertainty stems from many sources, including market downturns, inflation, and interest rate changes, to name a few. Risk- management assets should offer a robust way to mitigate the contributions from one or more of these contributors touncertainty.
Investors should avoid “missing the forest for the trees” when hedging risk. For example, an asset class whose returns are correlated with inflation but are much more volatile than changes in the Consumer Price Index may not be an effective risk-management tool. You may be hedging unexpected inflation but still increasing uncertainty over future consumption due to the volatility.
Investments may also reduce portfolio risk if they increase diversification. But how should investors assess the diversification benefit? Although it is common to look at noisy correlation estimates, investors may want to ask whether the investment expands their opportunity set. If you’re only invested in US stocks, thenexpanding the portfolio globally improves diversification. The global stock market is worth around $80 trillion.1 Global bond markets tack on another $125 trillion.2 This is important context for the size of potential additions to your asset allocation and may be a helpful starting point for determining how much to invest in the asset.
THE COST OF DOING BUSINESS
The benefit of adding something to your portfolio must outweigh the drawbacks.
An obvious drawback is high costs. Fees and expenses are typically transparent to investors, but it’s important to be aware of differences in fee structures. Traditional equity and fixed income mutual funds and ETFs usually use a flat percentage fee based on assets under management. Other asset classes may include performance fees. These structures may incentivize manager behavior in ways that are inconsistent with your investment objectives.
A less-transparent cost (at least on expectation) is the potential for adverse selection. Whether we’re talking about the latest initial public offering (IPO) or a private equity placement, the most desirable allocations will have a line out the door. Investors without access to the most desirable investments will be left with suboptimal selections. This challenge is compounded if high minimum-investment thresholds are imposed, which may preclude diversified exposure across investments.
An investment’s potential is more likely to be beneficial if you can stick with it through thick and thin. This is where complexity becomes a drawback. All investments go through periods of disappointing performance.The extent to which investors can endure these periods and stick with the investment plan may depend onhow well they understand what drove performance. Transparency and trust tend to be highly correlated. All else equal, investors in opaque strategies or ones with less operational history may be less inclined to persevere in times of uncertainty.
Finally, there’s the cost of wondering about the road not traveled. Adding a new investment means giving up some of what you already have. That presents the potential for regret if the asset you’re giving up goes on a strong performance run subsequent to the change. For example, many investors were tempted to jettison value portfolios in the wake of value stocks’ decade-long underperformance vs. growth prior to 2021. Replacing value right before its historic run in 2021 and the first half of 2022 may haunt investors for years to come.
REAL-WORLD EXAMPLES
We can put this framework to use with a few examples of notable alternative asset classes.
Bitcoin
The media fanfare around bitcoin has left many investors wondering if they should dip their toe in the cryptocurrency waters. A few aspects of our evaluation framework are instantly relevant.
Let’s start with the expected-return criterion. Little attention would be paid to bitcoin were it not for its meteoric rise in value in recent years.3 But it’s unclear why holding bitcoin should have a positive expected return. Bitcoin offers no claim on future cash flows, as one gets with a stock, and no promised interest payments, as one is entitled to with a bond. Future returns from simply holding bitcoin dependon it appreciating in value vs. another asset—the definition of a speculative investment.
It is difficult to imagine uncertainty over lifetime consumption beingreduced by an asset that has, multiple times, fallen in value by double-digitpercentages in a single day.
It’s also not clear bitcoin or other cryptocurrencies can help investors manage risk. Using Professor French’s definition of risk, it is difficult to imagine uncertainty over lifetime consumption being reduced by an asset that has, multiple times, fallen in value by double-digit percentages in a single day.
Another consideration is the size of the bitcoin market, which, at around $384 billion,4 is about 0.2% of the market value of global stock and bond markets. To put that in perspective, a $1 million portfolio composedof global stocks, global bonds, and bitcoin at market-cap weights would hold only about $2,000 in bitcoin.
Managed Futures
Managed-futures funds typically hold diversified futures contracts tied to various stock and bond indices. These strategies are often touted as diversifiers for traditional asset classes. While they may have low correlations with traditional equity portfolios, it is not because they expand an investor’s opportunity set; futures contracts are derivatives whose value is determined by the performance of the underlying asset. Derivatives may alter the so-called payout function of the asset, such as reducing downside exposure by forfeiting some potential upside, but they generally do not offer exposure to asset classes outside of traditional portfolio components.
Costs are another consideration with managed-futures strategies. An academic study5 on managed-futures funds reported a gap between before-fees and after-fees measures of average returns of 4.52 percentage points per year. That’s a lot of performance being squeezed out before it can land in an investor’s hand.
Thematic Funds
Thematics represent a broad class of investment strategies that generally target themes, providing exposure to narrow subsets of the market, such as individual sectors or companies touted as potentialbeneficiaries of long-term economic trends.
Proponents of thematic investing may subscribe to a high-expected-return story rooted in the premise that these investment styles are ahead of the curve. This is essentially a market-timing proposition, and thehistorical data are not kind to the success of market timing. Thematic funds therefore may not increase expected returns for investors already possessing exposure to the equity market.
It’s also not clear thematic strategies increase diversification. For example, one thematic ETF focuses on companies expected to benefit from COVID-19-related paradigm shifts (work from home, attention to health, etc.). These aren’t new sectors—investors with globally diversified equity portfolios are likely holding these stocks already.
ASKING THE RIGHT QUESTIONS
Type I errors in asset allocation changes are expensive. Replacing an investment you once believed in with a shiny new product that doesn’t pan out is potentially detrimental to achieving your financial goals. A consistent evaluation framework helps investors mitigate the chance of this regret. These evaluation criteria can also be customized to individual preferences. After all, considerations like liquidity needs and risk tolerance often vary through an investor’s lifetime.
At the end of the day, this framework is about asking the right questions, which, as researchers will tell you, is just as important as the answer itself.
Ken French is a member of the Board of Directors of the general partner of, and provides consulting services to, Dimensional Fund Advisors LP.
The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Dimensional to be reliable and Dimensional has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations.
Unauthorized reproduction or transmitting of this material is strictly prohibited. Dimensional accepts no responsibility for loss arising from the use of the information contained herein.
This material is not directed at any person in any jurisdiction where the availability of this material is prohibited or would subject Dimensional or its products or services to any registration, licensing or other such legal requirements within the jurisdiction.
“Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., Dimensional Ireland Limited, DFA Australia Limited, Dimensional Fund Advisors Canada ULC, DimensionalFund Advisors Pte. Ltd, Dimensional Japan Ltd. and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.
Risks
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value.Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.
UNITED STATES
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value
Dimensional Fund Advisors does not have any bank affiliates.
CANADA
These materials have been prepared by Dimensional Fund Advisors Canada ULC. The other Dimensional entities referenced herein are not registered resident investment fund managers or portfolio managers in Canada.
This material is not intended for Quebec residents.
Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise noted, any indicated total rates of return reflect the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or other distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
AUSTRALIA
This material is issued by DFA Australia Limited (AFS Licence No. 238093, ABN 46 065 937 671). This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person. Accordingly, to the extent this material constitutes general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. Investors should also consider the target market determination that has been made for each financial product either issued or distributed by DFA Australia Limited prior to proceeding with any investment. Go to au.dimensional.com/funds to access a copy of the relevant target market determination. Any opinions expressed in this material reflect our judgement at the date of publication and are subject to change.
NEW ZEALAND
This material is issued by DFA Australia Limited (incorporated in Australia, AFS License No. 238093, ABN 46 065 937 671). This material is provided for information only. This material does not give any recommendation or opinion to acquire any financial product or any financial advice product, and is not financial advice to you or any other person. No account has been taken of the objectives, financial situation or needs of any particular person.Accordingly, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives,financial situation and needs. Investors should also consider the Product Disclosure Statement (PDS) and for the Dimensional Wholesale Trusts the target market determination (TMD) that has been made for each financial product or financial advice product either issued or distributed by DFA Australia Limited prior to acquiring or continuing to hold any investment. Go to au.dimensional.com/funds to access a copy of the PDS or the relevant TMD. Anyopinions expressed in this material reflect our judgement at the date of publication and are subject to change.
WHERE ISSUED BY DIMENSIONAL IRELAND LIMITED
Issued by Dimensional Ireland Limited (Dimensional Ireland), with registered office 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland. Dimensional Ireland is regulated by the Central Bank of Ireland (Registration No. C185067).
WHERE ISSUED BY DIMENSIONAL FUND ADVISORS LTD.
Issued by Dimensional Fund Advisors Ltd. (Dimensional UK), 20 Triton Street, Regent’s Place, London, NW1 3BF. Dimensional UK is authorised and regulated by the Financial Conduct Authority (FCA) – Firm Reference No. 150100.
Dimensional UK and Dimensional Ireland do not give financial advice. You are responsible for deciding whether an investment is suitable for your personal circumstances, and we recommend that a financial adviser helps you with that decision.
Dimensional UK and Dimensional Ireland issue information and materials in English and may also issue information and materials in certain other languages. The recipient’s continued acceptance of information and materials from Dimensional UK and Dimensional Ireland will constitute the recipient’s consent to be provided with such information and materials, where relevant, in more than one language.
NOTICE TO INVESTORS IN SWITZERLAND: This is advertising material.
JAPAN
For Institutional Investors and Registered Financial Instruments Intermediary Service Providers.
This material is deemed to be issued by Dimensional Japan Ltd., which is regulated by the Financial Services Agency of Japan and is registered as aFinancial Instruments Firm conducting Investment Management Business and Investment Advisory and Agency Business.
Dimensional Japan Ltd.
Director of Kanto Local Finance Bureau (FIBO) No. 2683
Membership: Japan Investment Advisers Association
SINGAPORE
This material is deemed to be issued by Dimensional Fund Advisors Pte. Ltd., which is regulated by the Monetary Authority of Singapore and holds a capital markets services license for fund management.
This advertisement has not been reviewed by the Monetary Authority of Singapore, and should not be shown to prospective retail investors. FOR PROFESSIONAL INVESTORS IN HONG KONG
This material is deemed to be issued by Dimensional Hong Kong Limited (CE No. BJE760) (“Dimensional Hong Kong”), which is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.
This material should only be provided to “professional investors” (as defined in the Securities and Futures Ordinance [Chapter 571 of the Laws of Hong Kong] and its subsidiary legislation) and is not for use with the public. This material is not intended to constitute and does not constitute marketing of the services of Dimensional Hong Kong or its affiliates to the public of Hong Kong. When provided to prospective investors, this material forms part of, and must be provided together with, applicable fund offering materials. This material must not be provided to prospective investors on a standalone basis.Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice.
Neither Dimensional Hong Kong nor its affiliates shall be responsible or held responsible for any content prepared by financial advisors. Financial advisors in Hong Kong shall not actively market the services of Dimensional Hong Kong or its affiliates to the Hong Kong public.
08/23/2022
https://my.dimensional.com/does-fill-in-the-blank-belong-in-my-portfolio
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