DFA funds vs. Vanguard

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Topic Author
Erich
Posts: 9
Joined: Sat Jun 09, 2018 11:04 am

DFA funds vs. Vanguard

Post by Erich »

Considering DFA funds.

Pros/Cons

All taxable account.
cheapskate
Posts: 831
Joined: Thu Apr 26, 2007 1:05 pm

Re: DFA funds vs. Vanguard

Post 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.
Skierajs
Posts: 26
Joined: Wed Apr 04, 2018 9:05 am

Re: DFA funds vs. Vanguard

Post 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.
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