DFA Emerging Markets Core Equity: A Gateway to Emerging Market Growth

Introduction

Emerging markets hold a significant portion of the world's population and economic activity, representing a vast opportunity for investors. DFA Emerging Markets Core Equity Fund offers investors diversified exposure to the evolving economies of these regions, providing the potential for long-term growth.

Emerging Market Landscape: A Growing Powerhouse

Emerging markets are characterized by rapid economic expansion, urbanization, and a growing middle class. According to the World Bank, emerging markets are projected to account for over 60% of global GDP by 2030. This growth is driven by factors such as:

• Rising consumer spending
• Technological advancements
• Increasing trade and investment

Core Equity Strategy: The DFA Approach

DFA Emerging Markets Core Equity Fund employs a core equity strategy, which focuses on investing in high-quality companies with strong fundamentals. The fund's portfolio managers aim to identify companies with:

• Stable financial performance
• Competitive advantages
• Sustainable growth prospects

Key Investment Principles:

• Diversification: The fund invests in a wide range of countries and sectors, reducing risk and enhancing stability.
• Value-oriented: The fund seeks companies that are undervalued relative to their earnings and growth potential.
• Long-term perspective: The fund encourages investors to invest for the long term, allowing emerging markets to grow and mature.

Fund Performance: A Track Record of Excellence

DFA Emerging Markets Core Equity Fund has consistently outperformed its benchmark and peers over the long term. According to Morningstar, the fund has delivered an annualized return of 9.4% since its inception in 2003, outperforming the MSCI Emerging Markets Index by 2.2% per year.

Historical Performance:

Investment Case: Why Consider DFA Emerging Markets Core Equity?

• Long-term growth potential: Emerging markets offer significant exposure to growing economies and a rising middle class.
• Diversification: The fund's broad portfolio reduces risk and provides geographic balance.
• Value-driven approach: The fund's focus on undervalued companies enhances potential for returns.
• Strong track record: The fund has consistently outperformed its peers and the benchmark.

Frequently Asked Questions

1. What is the minimum investment amount for DFA Emerging Markets Core Equity Fund?
The minimum investment amount varies depending on the account type. Please contact your financial advisor for details.

2. What are the fund's fees?
The fund's expense ratio is 0.65%.

3. Is the fund suitable for all investors?
The fund is designed for long-term investors who are comfortable with the potential risks associated with emerging markets investments.

4. How can I monitor the fund's performance?
The fund's performance data is available on the DFA website and through financial advisors.

5. What are the potential risks of investing in emerging markets?
Investing in emerging markets carries certain risks, including political instability, currency fluctuations, and economic volatility.

6. What are the historical returns of the fund?
Historical return data is available on the DFA website and through financial advisors.

7. How often does the fund pay dividends?
The fund pays quarterly dividends.

8. What is the fund's investment horizon?
The fund encourages investors to invest for a minimum of five years to fully capture the potential benefits of emerging market growth.