As you will probably notice shortly, I am just about to write extensively on DFA. You are correct that on the surface they just appear to be similar to index ETFs, but there is so much more to it. I like to think of myself as one of the more analytical advisors out there and it took me weeks and weeks of prep and much, much reading after the conference to fully appreciate what DFA is and does – because it is very unique.

You are correct that DFA could probably get a lot more business if they offered their funds to DIY investors through discount brokerages, but they don’t want anyone investing in their funds if they don’t understand them and they absolutely abhor “hot money” – i.e. investors who throw money at a perceptually hot product. The long term returns for their oldest funds have beaten their benchmarks after fees so this would be appealing, but it’s possible for the funds to underperform the traditional indices – and that might cause those new investors to jump ship – this really hurts the long term investors since it forces the managers to liquidate positions to pay for redemptions which could not only have market impact (concept will be discussed later) and create unfavourable tax consequences as well (increased turnover).

I’ll do my best to convey my thoughts – but be warned it will take many many posts – easily 30. This will be a big project…

Just my opinion. First day on this site and I love it already—lol.

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Thanks Joe – hope you enjoy the future posts!

didn’t know where else to post this. Discovered site after reading globe article.

All the best–Joe

Maybe it’s a big waste of time for most people – but that means this paradox is based on the idea that everyone invests in stocks only with logic and reason :D