Dimensional Winning in Emerging Markets: Riskless Return
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Investing in emerging-market small-cap stocks paid off in a big way for Dimensional Fund Advisors LP this year.
Dimensional’s $4.7 billion Emerging Markets Small Cap Portfolio produced the highest risk-adjusted return of 197 similar funds in the first half, according to the BLOOMBERG RISKLESS RETURN RANKING, by spreading cash across more than 3,000 stocks of small businesses in 17 countries from India to Brazil, while skirting Russia. The fund, managed by Karen Umland and Joseph Chi, gained 1.2 percent when adjusting for price swings, double the return of the MSCI Emerging Markets Index.