Profitability Implementation

Savina Rizova and Jed Fogdall discuss the impact of incorporating profitability research into live equity strategies.

Recording Time Stamps

(01:29)   Incorporating profitability in portfolio design varies
  • Core strategies
  • Small cap strategies
  • Large value strategies
  • Large growth strategies
  • High relative profitability strategies

(16:13)   Considerations when adding new premiums: governance, tools, data
(22:30)   Robust data processes can help reduce unnecessary turnover
(30:12)   COVID-19 and its impact on companies’ financials
(35:36)   Profitability premium performance
(41:47)   Including profitability in your asset allocation
(45:45)   Does momentum have an effect on profitability?
(47:33)   Implementing profitability in sustainability funds


Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.

All expressions of opinion are subject to change. This content is distributed for informational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.

Indices are not available for direct investment. Their performance does not reflect the expenses associated with management of an actual portfolio.


This information is provided for registered investment advisors and institutional investors and is not intended for public use. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

Dimensional makes no representation as to the suitability of any advisor, and we do not endorse, recommend, or guarantee the services of any advisor.

The opinions expressed herein represent the personal views of the author and not necessarily those of Dimensional Fund Advisors LP or its affiliates, and they are subject to change continually (including due to changes in the law) and without notice of any kind.

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at Dimensional funds are distributed by DFA Securities LLC.

Dimensional Fund Advisors LP (“Dimensional”) makes available certain model portfolios (“Dimensional Models”). The Dimensional Models are provided “as is.” Dimensional has no obligation to continue to maintain or take any other action with respect to the Dimensional Models and may stop providing any update to the Dimensional Models at any time in its sole and absolute discretion. Dimensional is providing information in the form of Dimensional Models as ideas for possible construction of portfolios centered around the Dimensional Funds and not as investment advice or research. Dimensional is not providing any investment, tax or financial advice to any institutional investor, Advisor or any client of the Advisor, and has no obligation to and will not take into account the tax status, investment goals or other characteristics of any institutional investor, Advisor or any client of the Advisor when compiling the Dimensional Models. Dimensional is not acting as a fiduciary to any institutional investor, Advisor or any client of the Advisor, nor is any institutional investor, Advisor or any client of the Advisor entering into any type of advisory or other relationship with Dimensional. To the fullest extent permitted by applicable law, Dimensional shall have no liability, including with respect to the accuracy of any data, to the institutional investor, Advisor or any client of the Advisor in relation to the Dimensional Models. The risks of the Dimensional Models are subject to the risk of the Dimensional Funds, which can be found in the applicable prospectus. The selection of Dimensional Funds and the allocation and reallocation of Dimensional Model assets may not produce a desired result.

The Dimensional research and portfolio management teams (the “Model Team”) developed the Dimensional Models for launch on 3/31/2020. The Model Team, with oversight from Dimensional’s Investment Committee, generally expects to select funds for the Models managed by Dimensional (“Dimensional Funds”) without considering the universe of funds sponsored by persons not affiliated with Dimensional or its affiliates (“Third Party Funds”), even though there may or may not be Third Party Funds that may be more appropriate for inclusion in such Dimensional Models. To the extent a user implements all or part of a Model, this will generate advisory and other fees for Dimensional or its affiliate, and the management fees of Dimensional funds may be higher than fees charged by Third Party Funds. The Dimensional Models asset allocation represent the selected target asset mix as determined by the Model Team and as of the date it is provided.