I believe (not sure?) that they are only available to fee only advisors. Run by a bunch of U of Chicago guys out of Santa Monica, CA. They are not available on my platform and wish they were.

Does anyone know which B/D's have access to them?

I use them!

Great firm!

And yes they are fee only!

[quote=Greenbacks]

I use them!

Great firm!

And yes they are fee only!

[/quote]

More please.  I am a fee based financial planner.

But what do these guys have that others don't.  Can they really have better managers than American Funds or FranklinTempleton?

From what I understand, they have very low expense ratios, they stress asset allocation---- This is basic stuff.

Is there active management?

Here's my take.  They sell it to advisors as being "exclusive" see you can only sell DFA funds after taking a 3 month class.  Blah blah.  It seems like how I prospect clients by teaching seminars.

What makes them so hot?

I heard they pool investors money into omnibus accounts and that is why the major broker dealers don't use them

[quote=vbrainy]

More please.  I am a fee based financial planner.

But what do these guys have that others don't.  Can they really have better managers than American Funds or FranklinTempleton?

From what I understand, they have very low expense ratios, they stress asset allocation---- This is basic stuff.

Is there active management?

Here's my take.  They sell it to advisors as being "exclusive" see you can only sell DFA funds after taking a 3 month class.  Blah blah.  It seems like how I prospect clients by teaching seminars.

What makes them so hot?

I heard they pool investors money into omnibus accounts and that is why the major broker dealers don't use them

[quote=AllREIT] [quote=vbrainy]

More please.  I am a fee based financial planner.

But what do these guys have that others don't.  Can they really have better managers than American Funds or FranklinTempleton?

From what I understand, they have very low expense ratios, they stress asset allocation---- This is basic stuff.

Is there active management?

Here's my take.  They sell it to advisors as being "exclusive" see you can only sell DFA funds after taking a 3 month class.  Blah blah.  It seems like how I prospect clients by teaching seminars.

What makes them so hot?

I heard they pool investors money into omnibus accounts and that is why the major broker dealers don't use them

[/quote]

DFA funds are intended as tools for advisors who believe in EMH 100%.

They are designed to provide targeted and gradiated exposure to the Fama French 3-factor model. So the only decision is relative asset allocation. It is the antithesis of active managment.

B/c DFA advisors tend to serve sophisticated money, the funds have very low turnover/redemptions.

Personally I execute the DFA model using ETF's, by layering value etf's over whole market ETFs. So I basicly take the R3K ETF, overlayed with R3KV, and then put on some extra R2K and R2KV, then add a little Microcap Exposure (using FDM). The net result being a portfolio with a smooth value skew.


[/quote]

Efficient Market Theory.  Yeah I remember that.

My work this weekend has also led me to believe they are closest to ETFs.  Sophisticated money.  Ya mon.  Pass the KFC.

. . . . . I mean after all of your acronyms I just had to stick one in of my own.

Good info.  Thanks.

ALLREIT,

You remind me of the nerdy kid in our gifted program in high school who would go in and erase our work on our Apple IIE, and try to talk over everyone else's head. 

It's okay to be smart AND speak common english.

<span =“bold”>Ok BankFC, so that even the workers at BAC can understand: (and yes, I was typing too fast I apologize.)



Personally I execute the DFA investing model using ETF’s instead
of DFA’s funds. It is cheaper, and you can get the exact same effect.



DFA’s model is to have a total market portfolio with extra exposure to
small and value stocks. Which are the two “discretionary” Fama-French
factors.



I do this by layering value etf’s over total market ETFs. Since the
Russell ETF’s are broad based, and the style ETF’s are not pure style,
you can get a very smooth style overweight.



So I basicly take the Russell 3000 ETF, overlayed with Russell 3000
Value ETF. Then to add extra small cap, I put on some extra Russell
2000 and Russell 2000 Value.



For clients with greater risk tolerance, I add a little
Microcap Exposure (using the First Trust DJ Select Microcap ETF FDM). The net result being a total market portfolio with a
smooth value and small cap skew.

No, you don't understand.  I got what you said the first time, it was just evident that you were trying to "sound smart" using all the acronyms and such.

I grew up in a very small town with a freakishly high amount of "super smart" kids in my same grade, including a National Spelling Bee winner, a couple Duke Talent honorees, etc etc.  Not many above us or below us, but my grade was some type of anomoly. 

The one thing I couldn't stand is when someone would try to sound "smarter" than the rest of us on any given subject, just to boost their inner self worth. 

See, the "smartest" (educated and naturally talented) people I have ever met didn't need to validation of "sounding smart."  They just were, and everyone new it.  It's like the guy with the $250,000/yr job that drives a Boxter and has no savings, or the guy worth a few million that drives a F-150 and doesn't care who thinks what.

Obviously by my post this is a real pet peeve of mine, and I almost just erased this whole thing because it sounds a little rambling, but I think you get the message, and your second post was much more appropriate.

Thanks.

Bottom line if you do not understand them or they are not on your platform do not worry about it!

If you are with a wirehouse or a bank you will not be able to use them any way!   

[quote=BankFC]

No, you don’t understand.  I got what you said the first time, it was just evident that you were trying to “sound smart” using all the acronyms and such.

I grew up in a very small town with a freakishly high amount of "super smart" kids in my same grade, including a National Spelling Bee winner, a couple Duke Talent honorees, etc etc.  Not many above us or below us, but my grade was some type of anomoly. 

The one thing I couldn't stand is when someone would try to sound "smarter" than the rest of us on any given subject, just to boost their inner self worth. 

See, the "smartest" (educated and naturally talented) people I have ever met didn't need to validation of "sounding smart."  They just were, and everyone new it.  It's like the guy with the $250,000/yr job that drives a Boxter and has no savings, or the guy worth a few million that drives a F-150 and doesn't care who thinks what.

Obviously by my post this is a real pet peeve of mine, and I almost just erased this whole thing because it sounds a little rambling, but I think you get the message, and your second post was much more appropriate.

Thanks.

[quote=AllREIT]Ok BankFC, so that even the workers at BAC can understand: (and yes, I was typing too fast I apologize.)

Personally I execute the DFA investing model using ETF's instead of DFA's funds. It is cheaper, and you can get the exact same effect.

DFA's model is to have a total market portfolio with extra exposure to small and value stocks. Which are the two "discretionary" Fama-French factors.

I do this by layering value etf's over total market ETFs. Since the Russell ETF's are broad based, and the style ETF's are not pure style, you can get a very smooth style overweight.

So I basicly take the Russell 3000 ETF, overlayed with Russell 3000 Value ETF. Then to add extra small cap, I put on some extra Russell 2000 and Russell 2000 Value.

For clients with greater risk tolerance, I add a little Microcap Exposure (using the First Trust DJ Select Microcap ETF FDM). The net result being a total market portfolio with a smooth value and small cap skew.



[/quote]

Now that is some dynamite stuff.  Like it.

[quote=BankFC]

No, you don't understand.  I got what you said the first time, it was just evident that you were trying to "sound smart" using all the acronyms and such.

I grew up in a very small town with a freakishly high amount of "super smart" kids in my same grade, including a National Spelling Bee winner, a couple Duke Talent honorees, etc etc.  Not many above us or below us, but my grade was some type of anomoly. 

The one thing I couldn't stand is when someone would try to sound "smarter" than the rest of us on any given subject, just to boost their inner self worth. 

See, the "smartest" (educated and naturally talented) people I have ever met didn't need to validation of "sounding smart."  They just were, and everyone new it.  It's like the guy with the $250,000/yr job that drives a Boxter and has no savings, or the guy worth a few million that drives a F-150 and doesn't care who thinks what.

Obviously by my post this is a real pet peeve of mine, and I almost just erased this whole thing because it sounds a little rambling, but I think you get the message, and your second post was much more appropriate.

Thanks.

Grow up.  Now you are the judge of what is appropriate? 

Sounds like you have some boo boos left over from your youth that need some attention.

Take a pill, or go see Dr. Phil.

He presented his point extremely well.

[quote=vbrainy]

[quote=AllREIT]<span =“bold”>Ok BankFC, so that even the workers at BAC can understand: (and yes, I was typing too fast I apologize.)
[/quote]

Now that is some dynamite stuff.  Like it.

Again, ALLREIT I'm wit ya, even if you lost the other idiots.

But, please tell me you are not doing all of this analysis yourself.  Is your book built or are you still in the planning stage?

Don't you have a back office of geeks to do this type of stuff?

Does DFA encourage you to put ALL of your investor's money with them?

Surely, you would not put all your eggs in one fund family basket.