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DFA funds vs. Vanguard

Posted: Thu Jul 26, 2018 12:04 am
by Erich
Considering DFA funds.

Pros/Cons

All taxable account.

Re: DFA funds vs. Vanguard

Posted: Thu Jul 26, 2018 12:13 am
by cheapskate
Beware the tax consequences of holding DFA funds in taxable accounts. DFA has a nasty habit of large cap gains distributions. Personal experience from holding DFA Vector funds in taxable over the past decade is negative from a tax point of view. In 2017, if memory serves, DFA Vector distributed between 2-3% of NAV as LT cap gains.

New money goes to comparable ETFs in my case.

Re: DFA funds vs. Vanguard

Posted: Thu Jul 26, 2018 1:41 am
by Skierajs
cheapskate wrote: Thu Jul 26, 2018 12:13 am Beware the tax consequences of holding DFA funds in taxable accounts. DFA has a nasty habit of large cap gains distributions. Personal experience from holding DFA Vector funds in taxable over the past decade is negative from a tax point of view. In 2017, if memory serves, DFA Vector distributed between 2-3% of NAV as LT cap gains.

New money goes to comparable ETFs in my case.
DFA has tax managed funds which have similar or better tax costs to comparable ETFs. What’s the goal? If you are looking to implement a simple portfolio with a moderate small value tilt you might like the simplicity of DFA’s core funds such as DFTCX and DFTWX. Will a portfolio of DFA funds beat index funds, even without the advisory fee that usually comes along? No one can tell you that with any degree of certainty.