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Know When to Hold Em’
June 09, 2017

Know When to Hold Em’

Written By: Kennon Grose

Last month’s article told us that index funds have low costs and the ability to closely mimic the returns of the market. They also usually outperform the returns of most actively managed funds.

The statistical proof below proves a buy and hold strategy is a good long-term bet. In other words, if you have a good hand, hold on to it! Always buy and hold, regardless of fluctuations in the market.

The market goes up more often than it goes down, and compounding-returns during good times yield a higher overall return as long as the investment is given sufficient time to mature.

A good hand starts with the cards we are holding – Those cards are Dimensional Funds.

Relative Performance of Dimensional Funds With More Than 15 Years of History

Dimensional has 29 equity and fixed income funds that have 15+ years of performance history; 24 of which outperform their benchmark (83%). For comparison, there are 3,545 total funds in the industry sample with a 15+ year history, of which 625 outperform their benchmark (18%).

That’s why we, at AssetBuilder, take a less subjective, and more systematic approach to investing—an approach we can implement consistently. It’s an approach you can understand and stick with, even in challenging market environments.


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This article contains the opinions of the author but not necessarily the opinions of AssetBuilder Inc. The opinion of the author is subject to change without notice. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.

Performance data shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown.

AssetBuilder Inc. is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and expenses carefully before investing.