Sound Investing DFA & Avantis ETFs: Building the Ultimate Lifetime Equity Strategy
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Mar 25, 2026 A deep dive into factor-based equity strategies and how they evolved from cap-weighted indexing. Discussion of DFA and Avantis ETF access, differences in their approaches, and reasons to consider holding both. Practical notes on where to buy these funds and easy rebalancing options for lifelong portfolios.
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Commit Equity To A Lifetime Strategy
- Commit your equity allocation to a simple lifetime strategy instead of frequent tinkering.
- Paul Merriman recommends minimizing touches so you can stay the course and only rebalance equities periodically as life requires.
Factor Exposures Drive Long Term Returns
- Factor exposures (small/large, value/growth, US/international) drive long-term returns beyond simple market exposure.
- Merriman cites Fama and French research and DFA experience showing small cap value and large cap value outperformed the S&P 500 over decades.
How DFA Access Was Restricted In The 1990s
- Paul used DFA funds for clients in the mid-1990s but the public couldn't access them directly.
- He taught Vanguard alternatives because DFA limited advisor access, so clients paid advisors for that privilege.