Strategic Wealth has always believed in using academic research to help investors achieve their goals. Thankfully, we have decades of research on which to build investment strategies.

Three research papers, integral to the foundations of our strategy, celebrate their anniversaries this year. The pioneering minds behind these papers are among the many talented academics at Dimensional Fund Advisors.

For those wanting to learn more about the science of investing, we would like to share with you a series of conversations with these academics. Please follow the links below to read more.

Robert C. Merton

The first conversation is with Bob Merton, discussing the Intertemporal Capital Asset Pricing Model (ICAPM) (1973).

The ICAPM opened the door for thinking about dimensions of return. It is a theoretical model which expands on the traditional CAPM model. This paved the way for the factor-based investing strategy used by Dimensional and Strategic Wealth.

Read the full conversation here.

Eugene Fama and Kenneth R. French

The second conversation is with Eugene Fama and Ken French, discussing their three-factor model (1993).

This revolutionary model identified the small and value premiums, showing a higher long-term return for small companies and those with lower relative prices. These premiums are targeted by Dimensional's strategies to deliver better investment outcomes for clients.

Read the full conversation here.

Robert Novy-Marx

The last conversation is with Robert Novy-Marx, discussing their profitabilty research (2013).

The addition of the profitability premium, in addition to small and value, rounds out Dimensional's strategy. Novy-Marx provided evidence that the shares of profitable companies outperformed shares of less profitable companies long-term.

Read the full conversation here.