Index Fund Advisors, Inc.

A well-documented behavioral bias among investors is home bias — the tendency to favor domestic investments over international ones. There are a number of reasons for it. One is that people feel more comfortable investing in companies based close to home, which, rightly or wrongly, they think they know more about. But however laudable your reasons for allocating 80, 90 or 100 percent of your equity exposure to the United States, it's not a rational thing to do from a purely investment perspective. Allocating, say, 40% of your stock portfolio to international equities instead would give you much greater diversification. https://lnkd.in/g8nPfCct #stocks #investing

Mark Hebner and Wes Long talk to Apollo Lupescu about various topics in a town hall format in this 2024 Q3 Market Review. https://lnkd.in/g88ga6YC #indexfundadvisors #ETF #dimensionalfundadvisors #vanguard #ishares #blackrock #stockpicking #markettiming

US equities continued to strengthen in the second half of the year, with various market indices nearing or achieving record highs as the third quarter drew to a close. View our Q3 Market Review article to see which index outperformed and how IFAs Index Portfolios did in Q3. https://lnkd.in/gWJNt2rV #IFA #investing #investors #indexfunds #stocks #stockmarket #finance

IFA remembers investing great, John McQuown. ⁠https://lnkd.in/ghz-ycrK ⁠ #investing #indexfunds #stocks #stockmarket #finance #DFA #mutualfunds #indexfundadvisors #dimensionalfundadvisors #vanguard

The Nobel Prize-winning economist William Sharpe called it the golden rule of investing. Fellow Nobel laureate Harry Markowitz declared it "the only free lunch in finance." And financial historian and author Peter Bernstein described it as "the only rational deployment of our ignorance." What am I talking about? Diversification, the cornerstone on which every sound investment strategy is built. But what does a properly diversified portfolio look like? https://lnkd.in/g34EaQ_3 #diversification #investing #finance

FT Alpha editor Robin Wigglesworth recently caught up with Nobel laureate Eugene Fama for an overdue lunch date during which the pair discussed Fama's revolutionary efficient market hypothesis and the importance of recognizing the difference between security prices being "right" and being "fair." https://lnkd.in/gBxsr5zW #financialtimes #FT #fama #investing #stocks

A nearly universally accepted assumption is that, unlike most individual investors, large institutional investors can beat the market. In pursuit of this objective, some U.S. states employ more than 100 investment staff members to invest the capital of public employee retirement funds. Top universities claim to employ the brightest individuals to manage their endowments. And blue chip companies pay large sums to investment consultants and OCIOs to gain an edge.⁠ ⁠ But what if this assumption is wrong? What if, in the long-run, their costly efforts are unlikely to produce better returns than those delivered by financial markets? The evidence overwhelmingly shows that the faith that trustees have in their advisors is misplaced.⁠ https://lnkd.in/gAzkr2QE ⁠ #IFA #institutionalinvestors #endowments #retirementfunds #investmentconsultants #investing #investors #indexfunds #stocks #stockmarket #finance #financialliteracy

Silent Partners Painting "Silent Partners" refers to the parties who silently share in the realized and unrealized gains on an investment. Fees, expenses, taxes, and inflation are silent partners that can set an investor back before returns even begin. To view more IFA art, click the link below. https://lnkd.in/gkb_PCuC #IFA #investing #investors #indexfunds #stocks

Dimensional’s Marlena Lee: How to Measure Value When Marlena Lee speaks, our wealth advisors like to listen. As head of the global investment solutions group at Dimensional Fund Advisors (DFA), her research over the years has covered major investment questions surrounding key issues related to market pricing, factor performance and asset-class diversification, among others. In this question-and-answer session, we discuss how Dimensional quantifies and utilizes long-term premiums to gain from tilting fund portfolios to value stocks. https://lnkd.in/gU2h9mCE #IFA #investing #investors #indexfunds

Glidepath Painting An investor's risk exposure is systematically adjusted to risk capacity changes by reducing the allocation from stocks to bonds. This is referred to as a glide path strategy. One effective method to glide path a portfolio is through an approximate 1% reduction in the equity allocation of a portfolio per year over a lifetime. https://lnkd.in/gkb_PCuC #IFA #investing #investors #indexfunds