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
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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
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What R-squared values reveal about fund discipline, and why expense ratios alone don't tell the full story
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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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Why We're Moving to Best-in-Class Fund Families: Avantis and DFA
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.