Dimensional Fund Advisors Small Cap Value Investment Analysis and Metrics

Dimensional Fund Advisors Small Cap Value Investment Analysis and Metrics is a solid choice for investors seeking a disciplined approach to small cap value investing. Dimensional Fund Advisors' (DFA) Small Cap Value Fund has a long history of delivering strong returns, with a 10-year annualized return of 14.3% as of 2022.

The fund's investment approach is based on research that shows small cap value stocks have historically provided higher returns than larger stocks over the long term. DFA's research-driven approach involves selecting stocks with strong fundamental characteristics, such as low price-to-book ratios and high profitability.

The fund's portfolio is constructed to be highly diversified, with a focus on the smallest 25% of the US stock market by market capitalization. This approach helps to minimize the impact of individual stock selection errors and captures the benefits of diversification.

DFA's Small Cap Value Fund has a management expense ratio (MER) of 0.45%, which is relatively low compared to other actively managed funds.

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The expense ratio of DFSVX is 0.30%, which falls within the medium range. This means you'll pay a relatively small percentage of your investment in fees.

One of the benefits of DFSVX is that its expense ratio is lower than many other funds in its category.

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To evaluate the performance of DFA U.S. Small Cap Value Portfolio I, we can look at the performance chart, which shows the growth of an initial investment of $10,000 in the fund compared to the S&P 500 index.

The chart is adjusted for splits and dividends, giving us a clear picture of how the fund has performed over time.

By comparing the fund's performance to a benchmark like the S&P 500 index, we can get a sense of whether the fund is outperforming or underperforming the market.

Risk-adjusted performance metrics are also important to consider, as they evaluate an investment's returns against its associated risks.

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The charts present risk-adjusted performance metrics for DFA U.S. Small Cap Value Portfolio I and compare them to the S&P 500 index, providing a more nuanced view of the fund's performance.

These indicators give us a better understanding of the fund's risk profile and whether it's a good fit for our investment goals and risk tolerance.

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DFA U.S. Small Cap Value Portfolio I has a dividend yield of 1.50% over the last twelve months, with an annual payout of $0.71 per share.

The dividend yield has varied over the years, with a high of 10.40% in 2021 and a low of 1.96% in 2020.

The annual payout has also fluctuated, with a high of $4.52 in 2021 and a low of $0.68 in 2020.

Here's a breakdown of the annual payout for each year:

The dividend payout has been adjusted to account for splits over the years, and the monthly dividend distributions have been adjusted accordingly.

The monthly dividend distributions have also varied, with some months having no dividend payout at all.

Here's a breakdown of the monthly dividend distributions for each year:

| 2015 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.10 | $

The DFA U.S. Small Cap Value Portfolio I has a performance chart that shows its growth over time, comparing it to the S&P 500 index. This chart is adjusted for splits and dividends, giving a clear picture of the fund's performance.

The fund's risk-adjusted performance indicators reveal its returns against its associated risks. These indicators are presented in charts that compare the fund to a chosen benchmark, such as the S&P 500 index.

By examining the fund's performance chart and risk-adjusted performance indicators, you can get a sense of its growth and risk level. This information can help you make informed decisions about your investments.

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The Sharpe ratio is a key indicator of an investment's risk-adjusted performance. It's calculated based on the past year's trading data, taking into account price changes and dividends.

The current Sharpe ratio for DFA U.S. Small Cap Value Portfolio I is 0.52, which indicates a moderate level of risk-adjusted returns.

Risk-adjusted performance metrics are essential for evaluating an investment's historical performance. These metrics compare an investment's returns against its associated risks.

DFA U.S. Small Cap Value Portfolio I's risk-adjusted performance metrics are compared to the S&P 500 index, providing valuable insights into the investment's performance.

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Risk and performance go hand in hand, and understanding the worst drawdowns of a portfolio can be a valuable lesson. The DFA U.S. Small Cap Value Portfolio I had a maximum drawdown of 66.70% on Mar 9, 2009.

This was the largest reduction in portfolio value due to a series of losing trades. Recovery took a significant 953 trading sessions. The current drawdown is 10.75%, a far cry from the worst-case scenario.

The longest recovery period was 1397 trading sessions, which took the portfolio from its lowest point to its current value. This is a testament to the resilience of the portfolio.

The table below breaks down the worst drawdowns of the DFA U.S. Small Cap Value Portfolio I.

Looking at the table, it's clear that the worst drawdowns have occurred in the past, and the portfolio has recovered each time.

Dimensional Fund Advisors' small cap value strategy focuses on long-term growth by investing in small companies with strong financials and competitive advantages.

Their approach is based on research that shows small companies with high profitability and low debt tend to outperform their peers over time.

They also consider the industry and competitive landscape of each company, looking for those with a sustainable competitive advantage.

This approach has led to strong returns for investors, with the strategy outperforming the market in several time periods.

The DFA U.S. Small Cap Value Portfolio I has a history of paying dividends, with a current dividend yield of 1.50%. This yield is based on an annual payout of $0.71 per share.

The portfolio's dividend history varies from year to year, with some years seeing significantly higher payouts than others. For example, in 2022, the portfolio paid out $2.66 per share, while in 2021, it paid out $4.52 per share.

The dividend payout schedule for the portfolio is quite consistent, with most months seeing a payout of $0.00 or a small amount. However, there are some months where the payout is significantly higher, such as June 2024, which saw a payout of $0.19.

Here is a breakdown of the portfolio's dividend payments for each year:

The dividend yield has also varied over the years, with some years seeing a significantly higher yield than others. For example, in 2021, the yield was 10.40%, while in 2023, it was 3.67%.

Investment analysis is a crucial step in the investment process because it helps investors make informed decisions about where to put their money. By analyzing financial data, investors can identify potential risks and opportunities.

Investors who take the time to do their research are more likely to achieve their financial goals. For example, a study found that investors who performed their own investment analysis were 30% more likely to beat the market average.

Investment analysis involves evaluating a company's financial health, management team, and industry trends. This helps investors understand the company's potential for growth and profitability.

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