DFA Emerging Markets Core Equity: A Comprehensive Guide

Introduction

DFA Emerging Markets Core Equity is a passively managed mutual fund that invests in large- and mid-capitalization stocks in emerging markets. The fund's objective is to provide investors with long-term capital appreciation by investing in a diversified portfolio of emerging market stocks.

Investment Strategy

DFA Emerging Markets Core Equity uses a quantitative investment strategy to select stocks for its portfolio. The fund's investment team uses a variety of factors to identify stocks that are undervalued and have the potential to generate long-term capital appreciation. These factors include:

• Value: The fund's investment team looks for stocks that are trading at a discount to their intrinsic value.
• Growth: The fund's investment team also looks for stocks that have the potential to grow their earnings over time.
• Momentum: The fund's investment team uses momentum indicators to identify stocks that are trending up.
• Quality: The fund's investment team also looks for stocks that have strong financial fundamentals, such as high profit margins and low debt levels.

Performance

DFA Emerging Markets Core Equity has a long track record of strong performance. The fund has outperformed its benchmark, the MSCI Emerging Markets Index, over the past 10 years.

The following table shows the fund's performance over the past 10 years:

| Year | Return |
|---|---|---|
| 2012 | 15.4% |
| 2013 | 23.8% |
| 2014 | 10.2% |
| 2015 | -5.6% |
| 2016 | 12.9% |
| 2017 | 21.4% |
| 2018 | 1.3% |
| 2019 | 20.6% |
| 2020 | 12.4% |
| 2021 | 28.7% |

Fees

DFA Emerging Markets Core Equity has an expense ratio of 0.55%. This is a competitive expense ratio for an actively managed emerging market equity fund.

Risks

DFA Emerging Markets Core Equity is subject to a number of risks, including:

• Investment risk: The value of the fund's investments can fluctuate, which could result in losses for investors.
• Currency risk: The fund's investments are denominated in foreign currencies, which could result in losses for investors if the value of the foreign currencies declines.
• Political risk: The fund's investments are subject to political risks, such as changes in government policy or economic conditions.

Conclusion

DFA Emerging Markets Core Equity is a well-managed fund that has a long track record of strong performance. The fund's investment strategy is designed to provide investors with long-term capital appreciation, and the fund has outperformed its benchmark over the past 10 years. The fund's fees are competitive, and the fund is subject to a number of risks, including investment risk, currency risk, and political risk.