Part 8/11:
Dimensional Fund Advisors’ (DFA) fund operates under a model that closely resembles index funds but with a key difference—an intentional flexibility in trading. By delaying investments in IPOs and refraining from stringent rebalancing protocols, they have demonstrated an ability to avoid the drawbacks outlined in the discussions of adverse selection, price impact, and mean reversion. The implication is summarized by their ETF performance, which notably outperformed conventional index funds over a specific period.