DFAC
Dimensional U.S. Core Equity 2 ETF
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Thoughts on Dimensional Fund Advisors’ investment approach and ETFs?
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When you start seeing dimensionals ETFs that is from wealth management an example DFAC
Thank you for offering this! I just computed a few ideas for both buying puts and selling calls, and I'm not really finding a contract that would be better than just buying SPY after all... But if you're willing to help, would you mind giving me your take on what you would do? Another commenter convinced me to just give my full account details, so I wrote it here and will probably delete later 🙂. >Twenty-something, single, working 40-hours per week, full-time student, don't have time for anything else, including thinking about finances. Salary about 40k/yr but crazy frugal so I realized this year that I somehow have saved $300k over the past 20 years without realizing it. (Just reached that today.) >I realized a few months ago that I should really start doing something smart because I could be able to help out my family and friends in the future. So I put about $50k into Mag 7 stocks and about $100k into some total US market index (DFAC). >Today I skipped my afternoon work only because I thought I need to figure out what to do with the rest of this $150k because I don't want to realize in ten years that I wasted it. (Like I kind of realized this year.) >But after reading these comments and looking at options prices, I guess I'm actually not missing out on some obvious place I'm supposed to be putting the money to make it grow, like I thought I was. For instance, the 1-year covered call contracts available now for SPY are equivalent to buying and holding if the market does 10%. And like the other commenters mentioned, there's no big advantage to selling puts vs just buying SPY. >So I'm thinking I should just move the SGOV to SPY and leave behind a little to buy more in case the market drops after buying. (I just don't want to be missing something that would be smart to do.)
Hi, well I didn't think anyone would have time to help if I gave the whole story, but the people here are surprisingly nice, and I can always delete this later, so here it goes: Twenty-something, single, working 40-hours per week, full-time student, don't have time for anything else, including thinking about finances. Salary about 40k/yr but crazy frugal so I realized this year that I somehow have saved $300k over the past 20 years without realizing it. (Just reached that today.) I realized a few months ago that I should really start doing something smart because I could be able to help out my family and friends in the future. So I put about $50k into Mag 7 stocks and about $100k into some total US market index (DFAC). Today I skipped my afternoon work only because I thought I need to figure out what to do with the rest of this $150k because I don't want to realize in ten years that I wasted it. (Like I kind of realized this year.) But after reading these comments and looking at options prices, I guess I'm actually not missing out on some obvious place I'm supposed to be putting the money to make it grow, like I thought I was. For instance, the 1-year covered call contracts available now for SPY are equivalent to buying and holding if the market does 10%. And like the other commenters mentioned, there's no big advantage to selling puts vs just buying SPY. So I'm thinking I should just move the SGOV to SPY and leave behind a little to buy more in case the market drops after buying. Does that sound right? I might be missing something really obvious!
Want everyone's thoughts: DFAC vs SPY vs another x cap ETF? I'm doing DFAC rn but its always way less than DJI.
After being introduced to the “family trusted wealth manager” I gave my life savings to this very respectable firm. They slapped my personal money, my Roth IRA, my wife’s Roth IRA in DFIC, DFUS, DFAC. They suggested to go all in with all accounts in November 2021. Made no money for 2 years, then steadily underperformed the S&P500 when things picked back up in 2023 until 2025 when I fired them. I sold all that crap and put the money back in in April.
>If growth doesn't provide a compensated risk premium, why don't we hold all value? If you hold all small-cap value, you are taking way more risk than holding a broad index. Someone here mentioned that SCV beats the index on a risk-adjusted basis which is wrong. If it were the case, why would you buy an index then? Go all in on SCV because it's a free lunch, right? No, because the standard Sharpe ratio measurement for factor portfolios doesn't measure all of the risk that your portfolio has. Sharpe ratio is calculated based on volatility, which is only 1 dimension of risk according to the Fama-French model. Your portfolio's exposure to smaller companies is another independent dimension of risk, your portfolio's exposure to value companies is also another independent risk. In other words, risk is multi-dimensional. You cannot just focus on volatility/Sharpe-ratio. SCV is *not* a free lunch, you are taking more risk and expecting higher returns, which is consistent with the efficient market hypothesis. SCV might drop really hard during some of the worst possible drawdowns (look at the 2008 crash or the COVID crash). While you are getting higher returns per unit of volatility, the extreme drawdowns can be very devastating. That's why some people shy away from it. >Why is the S&P 500 still considered a good general investment for most people 5+ years before retirement when if you did 50/50 VIOV/VOO from early on, you'd probably perform way better just because you're buying out of favor companies? I just don't see the S&P 500 providing better returns going forward than the broader market. Your concerns are not unfounded. Academically speaking, S&P 500 doesn't have a premium, it is being promoted because most people are looking at recent returns (recency bias). Right now, it's very top-heavy, the top 4 companies represent 25% of the index. Out of 500 companies, the top 10 were mostly responsible for the recent growth. People are falling for the AI hype just like they did for the internet in 2000s. If you had 100% VOO in 2000, you were going to experience a brutal crash that recovered only 7 years later, and you would have had a 0 % something CAGR in that period, too. With VTI, you would have had a small but positive CAGR. A properly diversified portfolio shouldn't be betting on large-caps only. A lot of "100% VOO" people assume that 10% CAGRs are just given, but with current valuations, it is foolish to assume you are going to get the same CAGR for the next 10-15 years. Vanguard was recently suggesting moving the allocation to 60% bonds/ 40% stocks (equally split between US and international) because they are also predicting that the future returns for the US market are going to be way lower than the bond returns. VTI/AVUS/DFAC have higher expected returns based on the factor models because they have mid-caps and small-caps.
Thank you! Now I am planning to do two things: 1.) I have almost everything in DFAC right now, so I want to figure out what % is small cap and what is s&p500 and then switch DFAC into VOO and AVUV accordingly. 2.) Once everything is in the percentages I want (let's say 60-25-15 like in your example), then I will rebalance when needed. My last question: What if I want to rebalance every day (if needed) as opposed to a few times a year? Do you see a downside to that?
DO NOT get married. If you can walk to work, do not buy a car - Save up some money. Put at least 5% into your TSP - at least... more is better. DO NOT GET MARRIED Do not eat out, you pay for the DFAC, use it. Have an emergency savings fund, big green weenie will pay you $1000 and take back $1500 because of a finance f up. Please for the love of God, don't get married. Don't blow money on strippers.... they don't love you. Once you are putting 5%+ and have a grand or two in a emergency savings fund, if you wanna invest a small amount go for it. I recommend opening a Roth IRA and just putting whatever into it you can, buying VOO and forgetting about it. You can put up to $7,000 a year. Don't add to the population, don't subtract from the population, don't mess with wildlife.
SPY or DFAC alright bye bud have fun
From what I understand you’re proposing some kind of contrarian investing between asset classes, but you could do that within those asset classes in order to not reduce your expected returns by having more bonds than you’d like to.. You could invest in value or international stocks, for example. I myself try not to time the market, but I believe in having some tilts towards securities with greater expected returns. I invest in small cap value as a a way of trying to protect my self a little against possible overvaluations in the total market. There are also some funds that over or under weight stocks according to their over or under valuation. AVUS, DFAC or funds that track RAFI fundamental indexes are good examples.
>What’s DFAC? Dining Facility. It's what the military calls their chow halls these days. If you're at a little base, the DFAC could be a tent with some MRE's in it. Or at bigger really nice bases, it's a full on cafeteria with everything you'd expect at a run-down Golden Corral.
DFAC you talkin bout?
After hours trading isn’t representative of much. Likely some large wealth manager decided to change from DFAC to another etf after hours. Rarely does the etf open the full 10% down the next morning.
But If you did, she may DFAC ate all over
I too would like to DFAC his wife
That's Robinhood with low after-hours volume, meaning prices might swing wildly, but the true price will be when markets open. For example, google shows that $DFAC closed at $30.41 today, then went as low as $30.30 afterhours before rebounding to $30.41 again.
>what DFAC is this? I (along with a few hundred others) caught noro virus (poopy pants virus) at a DFAC years ago. I didn't weight myself, but between what came out both ends, I'm pretty sure I probably lost 10% in a day.
Take DFAC’ing up vote and get lost.
Bro, I was on the slow train too. DFAC is short for dining facility in the Army.
All my homies hate the DFAC 🇺🇲🦅
So DFAC did something that made you say “dfac bro?”
Three types of funds that would pair well with an SP500 fund would include 1) International. There have been long periods where international has beaten the US. If you don’t like international that’s okay too I guess. 2) Small cap. Historically small cap stocks have outgrown large cap stocks. Look at the ibbotsen chart. Some people who have attached their personality to the SP500 will downvote this but they are wrong. Small cap blend funds would include: IJR, VB, IWM, VXF. Small cap value funds would include: IJS, CALF, AVUV, VBR. 3) Value. The SP500 rides the line between large cap blend and large cap growth. Now, just any value fund won’t do. Check out DFAC from Dimensional. They use a factor based model to over/underweight different stocks. Another option would be FNDB which uses a slightly different set of factors but will generally achieve a similar result.
More like skirmishes. It’s not truly a war until our DFAC’s start serving steak and lobster right before a massive all call
Batt Boy? Ya’ll fuckin’ crazy. I’m sorry. I meant it musta been dangerous on tree bark and raw snake night at your DFAC.
Idk what DFAC ur talkin bout
You know what was real danger? Eating that food on surf & turf night at the DFAC
If you were in the military, you would have eaten for free at the DFAC.
because the US loves the military industrial complex, the unfortunate best version of this is to get a signing bonus for the military and then get deployed. Blue Collar welfare. virtually no expenses if you aren't an idiot with a 28% apr dodge charger and eat at the DFAC, and no taxes in a war zone.
Just be 74D and chill in your mopp gear storage room all day at the headquarters and headquarters company like I did. Get a profile to skip PT, get nice and fat from the free DFAC food, icecream and soda every meal so nobody puts you in training, tactically buy CQ duty from others while playing on your switch/laptop all shift, while skipping PT and trainings. You are there for 4 years, not trying to be the next CSM. Just be a shitter but don’t do anything to be kicked out and you will be fine. Anyone with half a brain can get the nice comfy MOS’. There were literally 42As that didn’t know the difference between a left and right computer mouse click at an intelligence bde. Army is easy if you don’t want to excel.
If you're enlisted, you're grossly over estimating the amount of money you're going to save. Unless you have quite a bit of time in, the pay is pretty mediocre. There are a lot of costs to being in the military, or potential costs, that roadblock savings quite a bit. 1. If you want to get married, you're moving every three years. Good luck having your spouse do anything other than being a server or at walmart. They work remote? Maybe a lucky break, but I'm guessing you're screwed. So you're supporting a family on your shitty minimal income, with maybe some supplementation. Good luck, lots of dirt poor NCOs out there. 2. Great you're committed to staying single! You can live on base (if there's space) for free, and get a fair amount of food, also free, at the DFAC. Army food fucking sucks, after you get done with 10 months of powdered eggs in training you'll be praying for a ride to the Green Bean coffee place for something that resembles actual food (resembles, b/c it's still fast food garbage). So, you're getting no 'extra' money for food and using your meagre income to go out to eat because if you're in the barracks (lower enlisted, single) - there's no kitchen. 3. Ok, you're a literal monk. You eat the DFAC food, you live in the asbestos filled, lead painted barracks. You save every cent. You get a uniform allowance but it doesn't cover things like, you're company is out in the field 1/2 of the month every month - and you can't wear shitty uniforms in garrison - so you're shelling out $70-$100 for new patches/uniforms all the time, plus you gotta pay for cleaning since the barracks doesn't have a laundry facility. Gotta buy boots at rates that are higher than you're getting paid for them (sure, you don't have to buy oakleys with soft soles, just wear the army issued hard soles until they wear down to about a 30 degree angle, I'm sure you won't spend most of your time as some kind of sick call ranger. Luckily they'll give you lots of motrin 800s to help with your quickly developing ankle, knee, and back problems. Also, remember, you're living in the barracks; and there's only one thief in the army; everyone else is just trying to get their shit back. So, the books, games, handheld devices, phones, air pods, food, beer, gaterade, uniforms you carefully spend your money on are gone all the fucking time. You've got a padlock on your foot chest? Buddy, I've been out for 12 years and I still have the three bolt cutters I left with. 4. Travel, assuming you have friends or family. You're going to get block leave once a year, some vacation times, 4 day passes. Airfare, driving, whatever. You're going to be in shithole places like Ft. Polk, Ft. Sill, Ft. Leanordwood, Ft. Hood - you're family lives on the west coast, the east coast, whatever. So you visit twice a year - you've got good savings, whatever - as specialist you're probably blowing a month + wage on plane tickets and incidentals. I could go on, about the long hours (you're definitely making under minimum wage), the shitty living conditions, how much it sucks to show up to work if you're in a bad unit (and there's nothing you can do about it except go to prison, so fucking suck it up), the health conditions you'll accumulate from leadership that loves to do 12+ mile marches with 60lb rucks (because they're fucking huah) all the time. Taking a shit in 115 degree heat in a porta john where the turd from your ass gently kisses the mount of shit piled up below before it disconnects, but whatever, you do you. We haven't even gotten to longer term, keeping up with the friends you made, and watching them die of kidney failure at 42, 1/4 of them killing themselves (my personal experience), or end up on disability after getting blown up. If you don't escape an MOS where you're getting shot at, or deployed; you can also look forward to that. If you think it's easy to come back to a very political correct society after your deployement... I've got some stock to sell you. Good luck, I mean it sincerely.
You didn’t include weightings but too many individual positions and not enough diversification. You would be better off with 60% DFAC and 40% DFAX. Rebalance and invest your new contribution annually.
DFA has funds which target value as well as profitability not following. They generally define their big 3 factors as profitability, value and size. DFAU, DFAC... all do value, size and profitability. I think Avantis is a bit ahead on the ETF space especially when it comes to easy naming. But... they seem like mostly clones.
Looks like DFAC focuses on slightly smaller companies, tilts a little less towards value, and favors profitability. Their performance is similar to AVUS though. If it was me, I'd hold one of those instead of VTI. The effects of the tilts are small enough that they won't show up unless they're substantial holdings. [Factor regression](https://www.portfoliovisualizer.com/factor-analysis?s=y®ressionType=1®ressionMethod=1&symbols=DFAC+AVUS&sharedTimePeriod=true&factorDataSet=0&marketArea=0&factorModel=5&useHMLDevFactor=false&includeQualityFactor=false&includeLowBetaFactor=false&fixedIncomeFactorModel=0&timePeriod=1&rollPeriod=36&marketAssetType=1&robustRegression=false)
Any thoughts about DFAC vs AVUS as a core holding in addition to VTI. Or is this splitting hairs? Very interested in their small cap and profitability tilts.
Advice for taxable brokerage Hi - 30year old looking for feedback on portfolio used for extra investment cash in a taxable brokerage account. I have separate retirement accounts maxed out with boring/traditional total us market, total international market, total is bond holdings. Here is the idea, all equal weight: DFAC SPLG SCHD QQQM DFAS DFAX SCHY My questions: Should I bother with a small cap fund? Same for the two internationals? I picked dimensional instead of a VTI etc. for the profitability tilt and active management with somewhat low expenses for a potential edge. I’m tempted to just scrap all this complexity and go 100% SPLG like the Oracle says.
Invest 20% of your base pay on day 1 into C fund of TSP or one of those lifecycle funds. This will make more sense after you join. Some squirrelly civilian will tell you more about it. Save 300-500 a month into a savings account. Buy a car with 60-80k miles that is relatively cheap. You want your car payment under 300. The lower the better. Eat the free DFAC meals for the first year or two until you can’t stand it anymore. Don’t buy the most expensive cell phone on the shelf. Privates don’t get paid the best, but your housing, meals, and utilities (minus internet/phone) are free. Don’t go out every Friday to the club. Make good financial choices. Use the military’s money to pay for 1-2 college classes a semester. In 4 years you can easily get a free associates, money in the bank, and a great line on your resume. It’s a great time to join since a lot of stuff is open. Don’t pick grunt shit. Pick medical, heavy equipment, finance, something.
I was in Iraq when all that happened. I remember sitting in the DFAC and saw the subtitles on the news broadcast saying Lehman bro's was getting a bailout and some lenders had failed. For probably a year or so, I had no idea we were in a recession. Having your basic needs met (tent, chow, showers) seemed to have made all the difference.
DFAC traumatized me from restaurant cooked shrimp
Go to college or get a 25B mos or go OCS or get fucking promoted. Live below your means and eat at the god damn DFAC
Paying off all of your debt is what I would start with if the interest rate is greater than 4%. If you don’t have an emergency fund, I would place some cash in there. Next, I’d buy some I Bonds. They currently have a 6 month yield of 9.62%. If inflation remains high, the next 6 month yield will also be attractive. Then I would invest the rest of the money in VTI, VXUS, and BND. If you believe in the small cap and value premium, you can add exposure there in your portfolio. I’m personally long DFAC (VTI alternative), DFAX (VXUS alternative), and BND.
DFA is not straight profitability unless you are talking about the three funds out of many that specifically target that factor. DFAC and DFAX are weighted just the same as avantis AVUS, AVDE AVEM.
The Chief Investment Officer at Dimensional explained [here](https://www.youtube.com/watch?v=EJMDLS6xCz8&t=4979s&ab_channel=TheRationalReminderPodcast) why that kind of portfolio (VT + AVUV) is pretty different than something like [DFAC](https://us.dimensional.com/etfs/dfac/us-core-equity-2-etf) \+ [DFAX](https://us.dimensional.com/etfs/dfax/world-ex-us-core-equity-2-etf).
Bruh…I remember getting kicked out of the chow line because my PTs were dirty. I swear so much walking from my pad to the DFAC that they wouldn’t let me in. I had to bring an extra shirt with me to change in the chow line before going in.
It was and is, my boy! At first, it wasn’t just the door that was broken, but my heart. The DFAC has this wonderful banana ice cream that if my country called upon me to die for, I would. Fact it was the only reason why I went there. The nana banana nana. Stupid, but stupid good... but the Marines, theloneabalone, they broke the DFACs door, causing one side to pump and dump the entire load. And it’s not like you can just call up and request a reservation; I inquired and CPT. ChickletDick told me to “get the fuck outta my face, SmartGuy” and I was like.....”I am Smart, Guy” to which my CPT. did not find humorous. Even more so, ChickletDick found it so unfunny that she heckled me during my standup comedy routine about this, unfortunately the crowd was more responsive to her....but that’s besides the point, many chickens died; some futility because though the military taught me how to butterfly a person’s eyes from their sockets; the act with a chicken is much more intimate because I gained their trust but that’s what makes my TenderPack the right snack or meal, anytime, and every time. Because that’s our secret ingredient that others can never replicate — love. Yes, love; sometimes it can be tough but other times, it can be Tender — try our TenderTenders *today*! That’s when I thought, “Hey, DenseCumTwat? You know what people would love? What you got going on with these chickens but mixed with a Red Lobsters choose your own lobster style extravaganza.... but with an open safari type twist!” And what’s funny is that the most wild thing cooking isn’t the loved from birth to plate meals but liability! “Aren’t you afraid of scarring children? PETAs not going to like this! What if someone is eaten while attending the restaurant?” Well, to them I say life is about living, that’s why I killed all them chickens to hatch this bully of an idea. We even are considering a personalized type “know your meal” style scrapbook that customers can buy. Currently, the team continues to look at options and hope to have a location nailed down with a start to construction around Q3 of next year. It will be a trip; for some, to therapy, others, love.
Once upon a time when I was in the military, a band of wild Marines broke the goddamn door to the DFAC (dining facility, kind of like a Luby’s if we honest) by, and get this, *pulling the push only door so hard and many times that it broke*. Half of the DFAC was closed for months over it, I learned how to raise, love and kill chickens into a Tender10Pack™ (I’m creating a food destination of sorts where your meat meal is so fresh that it is killed, processed and prepared right in front of you; I think it’ll be pretty big, families will love it). But ya, Marines are denser than *this* CumTwat.
0dte RIDE 6.5p for earnings, and DIS 165c. Gunning for that " Lord of Vets Day 0dte" crown as a vet. Either going to that DFAC in the sky filled with Rip-Its, or the dumpster behind the on base Burger King
That DFAC food though bro....This is the true sacrifice.