Recently, we made selective adjustments to some of the funds in your portfolio, replacing certain Vanguard funds with those from Dimensional Fund Advisors (DFA). It's important to note that we did not remove all Vanguard funds from our portfolios. As fiduciaries, we have a duty to review and analyze our portfolios annually to ensure we're using the best available funds to achieve your financial goals. This process involves evaluating not only the cost and performance of the funds but also how well they adhere to scientifically-backed factors that can enhance returns.

Both Vanguard and DFA offer low-cost, diversified funds, but our decision to replace specific Vanguard funds in certain asset categories was based on a comprehensive review of which funds best represent those categories. While Vanguard provides excellent broad-based index funds, DFA offers a more nuanced approach by focusing on factors such as company size, value, and profitability, which have been shown by academic research to deliver higher long-term returns. This targeted factor-based approach, combined with greater trading flexibility, allows DFA to capture additional value by avoiding the rigid constraints that index tracking can impose.

This change reflects our commitment to continually improving the structure of your portfolio by ensuring we are using the most effective tools available. By assessing costs, performance, and adherence to proven investment factors, we can make strategic decisions that better position your portfolio for long-term success while managing risk efficiently.

Our role as fiduciaries means we will always act in your best interest, and these changes were made with that duty in mind—to enhance performance and better align your investments with the evolving landscape of financial markets.