TY - JOUR T1 - Enhanced versus Passive Mutual Fund Indexing: <em>Has DFA Outperformed Vanguard by Enough to Justify Its Advisor and Transaction Fees?</em> JF - The Journal of Investing SP - 71 LP - 81 DO - 10.3905/JOI.2008.17.4.071 VL - 17 IS - 4 AU - Edward Tower AU - Cheng-Ying Yang Y1 - 2008/11/30 UR - https://pm-research.com/content/17/4/71.abstract N2 - Passive and enhanced index funds are two important options for investors. Vanguard is the largest provider of passive indexed funds, and DFA is one of the major providers of enhanced indexed funds, with uniquely close ties to academic financial research and an illustrious board of directors. Vanguard has low fees and investors can buy Vanguard funds directly. DFA’s fees are higher and one can invest in DFA funds only through an advisor, who charges for the service. Moreover, one must pay transaction fees to a custodian. We ask whether DFA has outperformed Vanguard by enough to justify the additional fees.TOPICS: Mutual funds/passive investing/indexing, mutual fund performance, portfolio construction ER -