BC8: Best in Class ETFs 2026 — Paul Merriman
Best in Class ETFs โ€” Boot Camp 2026
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Podcast & Video

๐ŸŽง Sound Investing Podcast
โ–ถ๏ธ Watch on YouTube
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What You'll Learn

01
Why we now recommend Avantis and DFA as best-in-class fund families — and how DFA's move into ETFs opened these strategies up to do-it-yourself investors
02
The four investing decisions that actually matter — and why fund selection is the LAST one, not the first
03
The difference between traditional index funds (Vanguard) and non-traditional index funds (Avantis, DFA) — and why the distinction can mean meaningful return differences over decades
04
What R-squared values reveal about fund discipline, and why expense ratios alone don't tell the full story
05
How to make the switch — including what to do in tax-deferred accounts, taxable accounts with embedded gains, and 401(k)s with limited fund menus
06
When a one-fund solution like AVGE or DFAW makes sense — and the tradeoff in tilt strength when you choose simplicity
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Read the Article

Why We're Moving to Best-in-Class Fund Families: Avantis and DFA
PDF — Free download
Read Now →
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Best in Class ETFs

๐Ÿ“„ Best in Class ETF Recommendations ๐Ÿ“„ Portfolio Configurator
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Key Takeaways

  • The most important investing decisions — saving, stocks vs. bonds, and tilting toward small cap and value — matter far more than which specific fund you pick.
  • Avantis and DFA build their own indexes using rules-based, academically-grounded methods, avoiding the front-running costs that hurt traditional cap-weighted index funds.
  • High R-squared values (97–99%) prove these funds are doing what they say — capturing factor exposures with discipline, not making mystery decisions behind the scenes.
  • In tax-deferred accounts, switching to Avantis or DFA is generally a clear win. In taxable accounts with embedded gains, weigh the tax cost against the long-term return improvement.
  • If your 401(k) doesn't offer Avantis or DFA, capture the match first, then redirect additional savings to an IRA where you have full fund choice.
  • Vanguard remains an excellent option — but for the one asset class Vanguard doesn't offer (international small cap value), substituting an Avantis or DFA ETF can meaningfully boost returns.