Table 1 - No-Nonsense Portfolios for Sound Investing ...

WHAT PORTFOLIOS

Table 1 - No-Nonsense Portfolios for Sound Investing: Equity Asset Allocation

1-Fund Portfolios

2-Fund Portfolios

DID YOU MODEL? Dimensional Returns 2.0 Data Base Source

S&P 500 (Buffett)

Total US Market (Collins)

Total World 3-Fund'

Total US Total World

Market - Equity only - + 30% US SCV + 30% US SCV

(Bogleheads) (Fama/French) (Fama/French)

All Value US Only (Merriman)

All Indexes, no explicit funds use.

Rebalanced Annually.

Int'l / Global

US

Dimensional US Market Index

S&P 500 Index (US Large Cap Blend )

100%

Dimensional US Large Cap Value Index

Dimensional US Small Cap Index

Dimensional US Small Cap Value Index

Dow Jones US Select REIT Index

Dimensional International Market Index

Dimensional International Large Index

Dimensional International Large Value Index

Dimensional International Small Cap Index

Dimensional International Small Cap Value Index

Dimensional Global Market Index

100%

100%

70%

70%

50%

30%

30%

50%

30%

All 4-Fund Portfolios Equally Weighted.

70%

No Contributions.

Data from Dimensional

US Asset Classes

& International Asset Classes

US

Note: All portfolios rebalanced annually.

3-Fund

Core 4

- Equity only -

Dimensional Returns 2.0 Data Base Source

(Ferri)

Dimensional US Market Index

60%

S&P 500 Index (US Large Cap Blend )

Dimensional US Large Cap Value Index

Dimensional US Small Cap Index

Dimensional US Small Cap Value Index

Dow Jones US Select REIT Index

10%

Dimensional International Market Index

30%

Dimensional International Large Index

Dimensional International Large Value Index

Dimensional International Small Cap Index

Dimensional International Small Cap Value Index

4-Fund Portfolios

US Only

World

All Value

4-Fund

4-Fund

World

(Merriman) (TrevH) (Merriman)

25%

25%

25%

25%

25%

25%

25%

25%

25%

25%

25%

25%

Repres enta ti ve Expense Ratio

applied to i ndex 0.03% 0.03% 0.35% 0.07% 0.25% 0.12% 0.11% 0.05% 0.39% 0.39% 0.58%

Representative Expense Ratios applied to all index returns.

Int'l / Global

Dimensional Global Market Index

0.10%

? 2020 Merriman Financial Education Foundation

Why Only 1990-2019?

? I wanted to use data from a consistent source over the entire analysis period and some of the indexes only went back to 1990. (Intl Large Cap Value and Global Market.)

? In the future we may be able to use different sources of returns and extend the analysis back to 1970 or earlier.

Why Indexes vs `Real' Funds?

? I used indexes because I wanted to show the relationship of asset class/portfolio performance without the impact of varying implementation costs between fund suppliers.

What is the difference between Dimensional Indexes and Dimensional Funds?

? Index returns reflect only the performance of the asset class.

? i.e., Indexes have no implementation expenses.

? When using indexes, performance differences between asset class indexes are just that, and not attributable to costs associated with how a fund is managed or used by the investor.

? e.g., Fund costs: expense ratios, management fees, trading fees, taxes, etc.

? Chris's "Best in Class" recommendations are a useful source for achieving good asset class returns as he considers which fund(s) best allow you to get most of the asset class, or factor, return.

How Were the Value Indexes Constructed? (1/2)

Sources and Descriptions of Data

All Dimensional portfolio returns are net of all fees unless otherwise indicated. All Dimensional trust returns are net of administrative fees only unless otherwise indicated. Prior to April 2002, certain international equity portfolios charged a reimbursement fee to the purchasers of shares of those portfolios

Dimensional US Large Cap Value Index

06, 1927- 06, 2020

June 1927 - December 1974: Dimensional US Large Cap Value Index

Composition: A subset of the US Large Cap Index. The subset is defined as companies whose relative price is in the bottom 25% of the US Large Cap Index after the exclusion of utilities, companies lacking financial data, and companies with negative relative price. The Eligible Market is composed of securities of US companies traded on the NYSE, NYSE MKT (formerly AMEX), and Nasdaq Global Market. Exclusions: Non-US companies, REITs, UITs, and Investment Companies Source: CRSP and Compustat.

January 1975 - Present: Dimensional US Large Cap Value Index Composition: Consists of companies with market capitalizations above the 1000th largest company of the Eligible market whose relative price is in the bottom 30% of large companies after the exclusion of utilities, companies lacking financial data, and companies with negative relative price. The Index emphasizes securities with higher profitability, lower relative price, and lower market capitalization. Profitability defined as operating income before depreciation and amortization minus interest expense divided by book equity. The Eligible Market is composed of securities US companies traded on the NYSE, NYSE MKT (formerly AMEX), and Nasdaq Global Market. Exclusions: Non-US companies, REITs, UITs, and Investment Companies Source: CRSP and Compustat.

The Dimensional US Large Cap Value Index has been retrospectively calculated by Dimensional Fund Advisors and did not exist prior to March 1st, 2007. Accordingly, the results shown during the periods prior to March 1st, 2007 do not represent actual returns of the Index. Other periods selected may have different results, including losses. Backtested index performance is hypothetical and is provided for informational purposes only to indicate historical performance had the index been calculated over the relevant time periods. Backtested performance results assume the reinvestment of dividends and capital gains. The index monthyreturns are computed as the simple average of the monthly returns of 12 sub-indices, each one reconstituted once a year at the end of each month of the year. Index is unmanaged and is not subject to fees and expenses typically associated with managed accounts or investment funds. Investments cannot be made directlyin an index. Past performance is no guarantee of future results.

The calculation methodology for the Dimensional US Large Cap Value Index was amended on January 1st, 2014 to include profitability as a factor in selecting securities for inclusion in the index.

Currency: USD Dimensional Index data compiled by Dimensional.

How Were the Value Indexes Constructed? (2/2)

Sources and Descriptions of Data

All Dimensional portfolio returns are net of all fees unless otherwise indicated. All Dimensional trust returns are net of administrative fees only unless otherwise indicated. Prior to April 2002, certain international equity portfolios charged a reimbursement fee to the purchasers of shares of those portfolios

Dimensional US Small Cap Value Index

06, 1927- 06, 2020

June 1927 - December 1974: Dimensional US Small Cap Value Index

Composition: A subset of the US Small Cap Index. The subset is defined as companies whose relative price is in the bottom 25% of the US Small Cap Index after the exclusion of utilities, companies lacking financial data, and companies with negative relative price. The Eligible Market is composed of securities of US companies traded on the NYSE, NYSE MKT (formerly AMEX), and Nasdaq Global Market. Exclusions: Non-US companies, REITs, UITs, and Investment Companies Source: CRSP and Compustat.

January 1975 - Present: Dimensional US Small Cap Value Index Composition: A subset of the US Small Cap Index. The subset is defined as companies whose relative price is in the bottom 35% of the US Small Cap Index after the exclusion of utilities, companies lacking financial data, and companies with negative relative price. The Eligible Market is composed of securities of US companies traded on the NYSE, NYSE MKT (formerly AMEX), and Nasdaq Global Market.

Exclusions: Non-US companies, REITs, UITs, and Investment Companies and companies with the lowest profitability within the small cap value universe. The index also excludes those companies with the highest asset growth within the small cap universe. Profitability is defined as operating income before depreciation and amortization minus interest expense divided by book equity. Asset growth is defined as change in total assets from the prior fiscal year to current fiscal year. Source: CRSP and Compustat

The Dimensional US Small Cap Value Index has been retrospectively calculated by Dimensional Fund Advisors and did not exist prior to March 1st, 2007. Accordingly, the results shown during the periods prior to March 1st, 2007 do not represent actual returns of the Index. Other periods selected may have different results, including losses. Backtested index performance is hypothetical and is provided for informational purposes only to indicate historical performance had the index been calculated over the relevant time periods. Backtested performance results assume the reinvestment of dividends and capital gains. The index monthly returns are computed as the simple average of the monthly returns of 12 sub-indices, each one reconstituted once a year at the end of each month of the year. Index is unmanaged and is not subject to fees and expenses typically associated with managed accounts or investment funds. Investments cannot be made directly in an index. Past performance is no guarantee of future results.

The calculation methodology for the Dimensional US Small Cap Value Index was amended on January 1st, 2014 to include profitability as a factor in selecting securities for inclusion in the index. The calculation methodology for the Dimensional US Small Cap Value Index was amended in December 2019 to include as growth as a factor in selecting securities for inclusion in the index.

Currency: USD Dimensional Index data compiled by Dimensional.

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