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      DFA Core Plus 50 - April 2025

      April 2025 Updates to DFA Core Plus 50 portfolio

      Strategy Overview

      The DFA Core Plus 50 Portfolio is built for moderate-risk investors who want a disciplined, globally diversified approach to balancing growth and stability. With a Risk Score of 52, the portfolio's six-month 95% historical range is -10% to +17%, reflecting a steady, risk-aware allocation.

      This strategy blends U.S. and international equities, high-quality fixed income, and select alternatives to help you capture global opportunities while managing downside risk. The portfolio is reviewed and updated regularly to ensure alignment with evolving market conditions and your long-term goals.

      April 2025 Allocation & Key Changes

      Asset Class / Fund Ticker April 2025 January 2025 Change
      Dimensional Global Core Plus Fixed Income ETF DFGP 30% 30% —
      Dimensional U.S. Core Equity 2 ETF DFAC 21% — New
      SPDR® Bloomberg 3-12 Month T-Bill ETF BILS 7.8% 6.3% +1.5%
      Dimensional International Core Equity 2 ETF DFIC 7% 7% —
      Dimensional U.S. Small Cap Value ETF DFSV 6% 7% -1%
      Dimensional U.S. High Profitability ETF DUHP 5% 6% -1%
      Dimensional International High Profitability ETF DIHP 2.5% 2.5% —
      Janus Henderson AAA CLO ETF JAAA 2% 4% -2%
      Stone Ridge Diversified Alternatives Fund SRDAX 2% — New
      Stone Ridge High Yield Reinsurance Risk Premium I SHRIX 2% — New
      Janus Henderson B-BBB CLO ETF JBBB 2% 2% —
      JPMorgan Equity Premium Income ETF JEPI 2% 2% —
      SPDR® Gold Shares GLD 2% 2% —
      Dimensional Emerging Markets Value ETF DFEV 2% 2% —
      Dimensional International Small Cap Value ETF DISV 2% 2.5% -0.5%
      iShares Convertible Bond ETF ICVT 1.5% 1.5% —
      DFA Dimensional Global Real Estate ETF DFGR 1.2% 1.2% —
      Cash / Money Market — 1% 1% —
      DFA Japanese Small Company I DFJSX 1% — New
       

      Notable Changes Since January:

      • Replaced Dimensional U.S. Core Equity 1 ETF (DCOR) with Dimensional U.S. Core Equity 2 ETF (DFAC) - DFACT is constructed to provide broader and deeper exposure to U.S. equities, with a stronger tilt toward small-cap, value, and high-profitability stocks compared to DCOR. This means DFAC intentionally overweights companies that are smaller, have lower relative prices (value), and demonstrate higher profitability, aiming to capture long-term risk premiums associated with these factors.

      • Increased allocation to T-Bills (BILS) for enhanced liquidity and income generation in the current rate environment.

      • Reduced exposure to U.S. Small Cap Value (DFSV), U.S. High Profitability (DUHP), and Janus Henderson AAA CLO (JAAA) to manage risk and rebalance toward core holdings.

      • Added Stone Ridge alternative funds (SRDAX, SHRIX) and DFA Japanese Small Company (DFJSX) for additional diversification and alternative return sources.

      • Slight reduction in Dimensional International Small Cap Value (DISV).

      Key Portfolio Metrics

      • Risk Score: 52 (vs. 51 in January)

      • 6-Month 95% Historical Range: -10% to +17%

      • Annual Distribution Rate: ~3.1%

      • Weighted Expense Ratio: ~0.24%

      Enhanced Diversification Through Alternative Strategies

      Stone Ridge High Yield Reinsurance Risk Premium (SHRIX) provides pure exposure to catastrophe-reinsurance risk, operating in a market disconnected from traditional financial assets. Launched in February 2013, SHRIX invests primarily (85-90%) in catastrophe bonds and partially (10-15%) in quota shares—risk-sharing contracts with reinsurers. The fund essentially collects premiums for providing financial protection against rare but catastrophic events like hurricanes and earthquakes.

      This strategy's returns are driven by insurance events rather than economic cycles, creating a powerful diversification tool. During 2022, when both stocks and bonds suffered double-digit losses, SHRIX delivered positive returns78. With a 10-year track record, this fund has demonstrated its ability to perform independently during market stress, potentially reducing overall portfolio volatility when traditional assets struggle.

      Stone Ridge Diversified Alternatives Fund (SRDAX) takes diversification further by investing across five distinct alternative strategies: reinsurance, market risk transfer, style premium investing, alternative lending, and single-family real estate. Launched in April 2020, SRDAX is designed to generate returns from risk premiums entirely different from those driving traditional markets69.

      Each strategy within SRDAX targets specific non-correlated return sources. The market risk transfer component, for example, sells options that provide counterparties protection against price changes in commodities. The style premium component implements value, momentum, and carry strategies through long/short positions. Alternative lending involves consumer, student, and small-business loans originated through non-traditional platforms10. This multi-strategy approach has delivered not just uncorrelated returns but truly "unrelated" performance compared to stocks and bonds9, making it an effective portfolio stabilizer during periods of traditional market stress.

      Both funds enhance portfolio resilience by introducing return streams driven by factors entirely different from those affecting stocks and bonds. When economic slowdowns, inflation concerns, or interest rate changes impact traditional markets, these alternatives can provide ballast because their performance depends on entirely different risk factors—like natural disasters, insurance pricing cycles, lending spreads, or real estate dynamics. This reduced correlation means that when one segment of your portfolio faces headwinds, another may be well-positioned to thrive.

      Fund Family & Fact Sheet Links

      Conclusion

      The April 2025 update to the DFA Core Plus 50 Portfolio reflects our ongoing commitment to disciplined, evidence-based investing. We've made targeted adjustments to enhance diversification through the addition of alternative strategies like SHRIX and SRDAX, while also shifting from DCOR to DFAC for core U.S. equity exposure. These changes aim to improve portfolio resilience across diverse market conditions.

       

      This content is being provided for informational purposes only and should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Diversification and asset allocation strategies do not assure profit or protect against loss. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.

      Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Sterling Edge Financial LLC. are not affiliated.