Dimensional Fund Advisors was founded nearly 35 years ago with the goal of managing mutual funds – the first of their kind – according to a then-new approach. Why not, its founders envisioned, apply the best academic evidence to participate in rather than chase available market returns?
It was a good idea – then and now. That said, it can take some extra understanding to embrace the evidence-based investment solutions available from Dimensional. If mutual funds came in flavors, theirs would be something more like pistachio than chocolate or vanilla – a little less familiar – and a little more elusive – to describe.
To help with that, Dimensional now offers a YouTube channel filled with a growing collection of short videos covering everything from the firm’s rich history to the academic theories that have informed its practical offerings.
For example, as the story goes, in 1981, the firm first operated out of a spare bedroom in co-founder David Booth’s Brooklyn Heights brownstone apartment. “It was run on the thinnest of margins,” says Booth, “and we didn’t exactly have success written all over it.”
Dimensional has since built on its foundation of ideas, evolving into a global fund provider. To this day, though, they still rely on the evidence as their guide. “Great research is research that you can structure strategies around,” describes Dimensional’s Gerard O’Reilly. “Great research solves problems for clients.”
To learn more, we encourage you to visit Dimensional’s YouTube channel and have a stroll around. If you could use a good tour guide, let us know. We’d be happy to share our own ideas with you as well.
Sage Serendipity: Since you’ve opened YouTube to watch the Dimensional Channel, we thought we’d clue you in on why YouTube has over 1 billion unique users a month. CBSnews.com puts us in the loop with its list 10 YouTube stars you need to know. One of them made $12 million last year through ads and sponsorship of his channel which watches him play video games. Another is science-based, answering big questions like “What does space smell like?”