Splitting Portfolio between DFA and Vanguard
I currently have allocated my retirement funds to your Vanguard buy and hold strategy as listed on your website. I have half of the allocation in DFA Funds as I noticed that some of the Vanguard Funds have performed better over the 5 year period as compared to the DFA ones so that is why I have a combination of the 2 fund families making up the entire suggested investment plan. I do pay a management fee for the whole portfolio though as all the assets are under the advisors care and maintenance. In your opinion is this a winning strategy to invest in the best performing asset classes from each fund family?
This is a very good question, one which in one way or another is on the minds of many investors these days.
I think the core question you are asking is something like this: Once I have figured out the asset classes I want, shouldn’t I use the funds in those asset classes that have performed best over the past five years?
You are implying two other questions:
- Which is better, Vanguard or DFA?
- Why has DFA underperformed Vanguard in several asset classes over the past few years?
