DEMSX: A Stellar Fund, Just Not ‘Riskless’
DFA’s Emerging Markets Small Cap Fund (DEMSX) recently topped Bloomberg’s ‘Riskless Return Ranking’. We agree it’s a great fund, but for many reasons not captured in Bloomberg’s ranking.
Grateful for index fund creator Jack Bogle’s contributions to everyday investing, Gordie Gorsuch, CFA, writes about effective investing on the Simple Truth blog. His calm voice of reason resonates in posts such as “Risk and Return Go Hand in Hand.”
DFA’s Emerging Markets Small Cap Fund (DEMSX) recently topped Bloomberg’s ‘Riskless Return Ranking’. We agree it’s a great fund, but for many reasons not captured in Bloomberg’s ranking.
According to bestselling author, Michael Lewis, “the stock market is rigged.” Lewis’ claims likely helped sales of his new book, Flash Boys, but shouldn’t cause long-term investors much despair.
The cost of a college education continues to rise faster than general inflation, making saving for a child’s future education a daunting task. Fortunately, state-sponsored college savings programs known as “529 plans” help families meet this challenge.
Many investors assume actively managed bond funds outperform bond index funds when interest rates rise. On the contrary, the majority of active funds fail to beat their benchmarks in such rate environments.
What could you do with an extra $350,000?
Including the current government closure, there have been 18 shutdowns since 1976. The debt ceiling has been raised virtually every year back to 1939, and in some instances multiple times per year. So, what’s the distinction between the two and how are they related? And, what do they tell us about future stock returns?