The DFA Small Cap Investment Fund is a small value fund that seeks to profit from long-term capital appreciation in U.S. companies. It has a very young and highly regarded management core, led by Stephen A. Clark since 2006.
One advantage of holding this investement compared to most other funds is that it does not have to follow an index to keep balance in the portfolio. This is beneficial, as stocks tend to over-perform once they leave an index, and this fund can still have them in holdings.
Another advantage of this fund is that it is made up of value stocks rather than growth stocks. Historically, value stocks have a higher return than growth stocks do.
From March 2009 to February 2014, the DFSVX had an average monthly return of .01974, compared to SPY's .01626 in the same period.
DFSVX also had a higher standard deviation in that time period, being .06131 compared to SPY's .03859.
It's Beta is 1.45742 (or 1.58877)
DFSVX has a Sharpe Ratio of .32209, and SPY has a Sharpe Ratio of .42135.
It has an Alpha of .00903 against the market proxy of SPY.
I would recommend this investment to my client, as it has a positive alpha, and has shown good comparable numbers against the market. It has shown to have a good management team, and also has more freedom over its stock portfolio than those funds that follow an index.