Ifa Brochure

Step 1: Active Investors
Step 2: Nobel Laureates
Step 3: Stock Pickers
Step 4: Time Pickers
Step 5: Manager Pickers
Step 6: Style Drifters
Step 7: Silent Partners
Step 8: Riskese
Step 9: History
Step 10: Risk Capacity
Step 11: Risk Exposure
Step 12: Invest and Relax
Table of Contents
IFAs Team and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Value of a Passive Advisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Overview of Index Funds: The 12-Step Recovery Program for Active Investors . . . . . . . . . . . . . . . . . . . 4-5
Step 1: Active Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Step 2: Nobel Laureates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Step 3: Stock Pickers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Step 4: Time Pickers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Step 5: Manager Pickers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Step 6: Style Drifters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Step 7: Silent Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Step 8: Riskese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Step 9: History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Step 10: Risk Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Step 11: Risk Exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Step 12: Invest and Relax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
IFA Index Portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
IFA Index Portfolio Data: Risk & Reward Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
IFA Index Portfolio Data: High-Low Comparison Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
IFA Index Portfolio Fact Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
IFA Target Date Index Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
IFA Target Date Index Portfolio Fact Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Disclosure for Backtested Performance Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i
Sources and Description of Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii
Ver. 1-26-2015
IFAs Team and Services
seek to capture the risk factors that have shown to most

appropriately compensate investors for risks taken. These
risk factors include market, size, value, and profitability
for equity and term and default for fixed income.
Index Fund Advisors, Inc. (IFA) is a registered
investment adviser with the Securities and Exchange
Commission and is based in Irvine, California. IFA is
a fee-only advisory firm founded in 1999 to provide
its clients individual risk-appropriate passive investing
strategies with a fiduciary standard of care. IFAs
investment advice and portfolio implementation are
designed for individuals, retirement plans, trusts,
endowments, foundations, and other accounts. IFA has
over 2,000 clients located throughout the country and
manages $2.6 billion of assets as of December 31, 2014.
3) Diversification is essential. Diversification both

within and among asset classes allows investors to
effectively capture the returns offered by the financial
markets, in accordance with their risk capacity.
IFAs investment philosophy is based on five principles

that derive from academic research, much of which has
been recognized with the awarding of the Nobel Prize in
Economic Sciences:
5) Advisor Advantage. There are distinct and quantifiable

benefits to enlisting the services of a passively oriented
advisor. These benefits include disciplined rebalancing,
tax loss harvesting, asset location, and glide path.
1) Financial markets are efficient. Prices in free markets

fully incorporate available information, and prices
change to reflect any unexpected new information so that
the current price is the best estimate of a fair price.
IFA matches its clients with risk-appropriate portfolios

comprised of globally diversified blends of index funds,
primarily from Dimensional Fund Advisors (DFA). IFA
works with three reputable firms that serve as custodians
to hold and protect client assets: Charles Schwab &
Company, Fidelity Investments and TD Ameritrade.
IFA clients make the choice.
4) Structure explains performance. The expected return

of a diversified portfolio is determined by its exposure
to the compensated risk factors, as explained previously.
The high costs and risks of active management are
unnecessary and potentially harmful to an investors
long-term outlook.
2) Risk and return are inseparable. While there is no such

thing as return without risk, not all risks are rewarded.
Long-term historical risk and return data informs IFAs
investment selection process, and IFAs Index Portfolios
For updates, and further information, visit ifa.com.
The Value of a Passive Advisor

As low-cost index fund investing continues to gain in
popularity, numerous researchers have turned their
attention to quantifying the value a passive advisor can
bring to an index portfolio. One such study conducted by
Vanguard, the leading provider of index funds quantified
the advisor alpha at 3%. This advisor alpha is the sum of
the value added by advisors who adhere to the principles of
controlling costs, maintaining discipline and tax awareness,
relative to other advisors or unadvised investors. The
greatest contribution a passive advisor brings is behavioral
coaching, according to the study or as William Bernstein
so succinctly puts it: Wall Street is littered with the bones
of those who knew just what to do, but could not bring
themselves to do it. The breakdown of the advisor alpha
set forth in Vanguards study is shown below.
IFA has compiled the findings of 22 more financial industry

studies (including our own internal studies) that have
explored the success investors have had at capturing fund
returns. Collectively, the summary of the research reveals
that the average active investor and do-it-yourself indexer
did not capture the full return of the funds they invested
it. The advised indexeror an investor who relies on the
services of a passive advisordid better. Specifically, active
fund investors without passive advisors (blue bars) captured
an average of 51.93% of the actual returns delivered by the
funds over various time periods (Data for all studies is found
in the Appendix). Do-it- yourself indexers without passive
advisors (purple bars) did better than active investors, but
still only captured an average of 82.67% of the index fund
return. A knowledgeable passive advisor can provide several
services, including the critical discipline needed to combat
emotional, reflex reactions. When advice is combined with
funds from DFA, a science-based passive fund company,
investors avail themselves of the opportunity to keep more
of what the market delivers. A 10-year study conducted by
Morningstar concluded that those who invested in DFA
funds captured up to 109% of the fund returns, thanks
to the very smart behavior that is practiced by passive
investment advisors who have committed to helping their
clients understand the sources of stock market returns,
the impact of emotions, and the value that science-based
investing can bring to a portfolio. 1-22
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Overview of Index Funds:

The 12-Step Recovery Program for Active Investors
STEP 1 - Active Investors: Recognize an Active Investor
Active investors try to pick winners among the many stocks, times, managers, and investment styles.
These investors must not realize that markets are moved by news, which is unpredictable and random.
Markets are also efficient, meaning that news is rapidly reflected in market prices. As a result, active
investing is not expected to be a profitable strategy. A more reliable source of long-term returns
is consistent exposure to economic risk factors backed by more than 87 years of historical data.
STEP 2 - Nobel Laureates: Defer to the Higher Knowledge of Academia
The research of many academics and Nobel Prize winners has explained the efficiency of financial
markets and the risk and reward connection. Their findings are unbiased, as these academics arent
trying to earn a commission or sell magazines and newspapers. More than a hundred years of academic
research point to index funds investing as a sound investment strategy. Sadly, the great majority of
investors have never read these academic studies and continue to actively invest.
STEP 3 - Stock Pickers: Accept That Stock Pickers Do Not Beat the Market
Stock picking is similar to gambling in that bets are placed on certain companies in the market.
An academic study23 found that 99.4% of active fund managers (who supposedly should be among
the best of stock-pickers) displayed no evidence of genuine stock-picking skill, and the 0.6% of
managers who did outperform the index were just lucky.24 An additional study25 conducted by
Standard and Poors found that there is no persistence of stock-picking ability beyond what we
would expect from chance alone.
STEP 4 - Time Pickers: Accept That Time Pickers Cannot Time the Market
There is no evidence that market timing gurus can consistently time the market. A peer-reviewed
study26 analyzed more than 15,000 predictions by 237 market-timing investment newsletters from
June 1980 through December 1992. The authors found that almost 95% of the newsletters had
gone out of business, with an average length of operations of about four years. They also found that
over 75% of the newsletters actually erroded value relative to a simple mix of cash and the S&P 500
Index. The authors concluded, There is no evidence that newsletters can time the market.
STEP 5 - Manager Pickers: Realize That Winning Managers Were Just Lucky
The so-called star money managers have a knack for attracting new mutual fund investors, charging a
hefty fee for gambling with clients money. Even more disturbing, results of a study of 8,755 institutional
managers show that, on average, the managers who beat their benchmarks for three years before being
hired then lost to their benchmarks in the following three years. The same study also looked at 660 hiring
and firing decisions and concluded that the managers who were fired beat the new hires in the next 3-year
period.27 Attempting to choose the next hot fund manager is futile.
STEP 6 - Style Drifters: Comprehend Active Management Style Drift
About half of mutual fund managers drift from one recent style winner to another, playing carelessly
with investors money. The investment objective stated in the prospectus of funds is altered by these
changes. The Standard & Poors Indices Versus Active Funds Scorecard (SPIVA ) is a report that
provides information on the consistency or persistence of funds staying true to their styles. Data
from the Mid-Year 2014 report reveals that only 51.62% of mutual funds remained style consistent
from 2009 - 2014.28
4
STEP 7 - Silent Partners: Recognize The Partners in Your Returns
Silent Partners eat away at both realized and unrealized investment gains. They do this through fees,
expenses, taxes, and inflation. Over time, this can cost investors in actively managed funds nearly 55%
of their ending wealth.29 On the other hand, investors can avoid both high costs and high taxes by
employing a passive investment strategy, which allows them to keep a bigger share of their returns pie.
STEP 8 - Riskese: Understand How Risk, Return and Time are Interconnected
Do you speak Riskese? Learning the language of risk will afford you a basic understanding of risk, return,
time, and diversification. Most investors chase the short-term returns of stocks, markets, managers,
and styles, because they dont understand that risk is the source of stock market returns. Returns of
diversified stock portfolios are explained by their exposure to five dimensions of risk: market, size, value,
term and default30. All five factors are depicted in the renowned Fama/French Five-Factor Model, which
serves as a framework for designing and analyzing diversified investment portfolios.
STEP 9 - History: Historical Risks and Returns of Indexes
Long-term data is required to improve the estimates of the expected risk and return for different
investments. We now have more than 87 years of monthly risk and return data on 21 important IFA
indexes. Since you cannot predict the future based on a small sample of recent events, the study of
long-term stock market data is a valuable source of meaningful information, leading investors to a better
characterization of the risks and expected returns of various asset classes and whole index portfolios.
STEP 10 - Risk Capacity: Analyze Your Five Dimensions of Risk Capacity
Whats your risk capacity? A simple survey can analyze your five dimensions of risk capacity: time
horizon, attitude toward risk, net worth, income, and investment knowledge. Risk capacity can be
regarded as a measurement of an investors ability to earn stock market returns. Calculating risk
capacity is the first step in deciding which portfolio will be most appropriate for each investor. A
risk capacity score determines the proper risk exposure for an investors portfolio.
STEP 11 - Risk Exposure: Analyze Your Five Dimensions of Risk Exposure
Investors can expect to achieve optimal results when their risk capacity score is matched with one of
IFAs 100 Index Portfolios of comparable risk exposure. At IFA, we call this matching people with
portfolios. Taking on the appropriate amount of risk enables investors to maximize their expected
outcome. Each Index Portfolio is constructed with a specific blend of asset class funds that capture a
quantifiable level of risk exposure. A properly designed index portfolio will include more than 13,000
stocks and bonds from over 44 countries around the world.
STEP 12 - Invest & Relax: Rebalance, Tax Loss Harvest, Glide Path, and Asset Locate
Once you understand the lessons provided in this booklet, you will be able to invest and relax. Thats
what clients of IFA allow themselves to do when they experience IFAs commitment to fiduciary
duty, ongoing and sound advice, long-term risk and return data, rebalancing, asset allocation, asset
location, the glide path, tax loss harvesting, and emotions management. These are just a sampling of
the many advisory services that IFA provides its valued clients.
Step 1: Active Investors

Recognize an Active Investor
Active investing is a strategy that investors use when
trying to beat a market or appropriate benchmark. Active
investors rely on speculation about short-term future
market movements and ignore vast amounts of historical
data. They commonly engage in picking stocks, times,
managers, or investment styles.
The chart below tells the story. It reflects the findings of

a 2014 Dalbar study, revealing that the average equity
fund investor significantly underperformed the S&P
500 over a 30-year period. The study shows that during
the 30 years from 1984 through 2013, the average equity
fund investor earned returns of only 3.69% per year,
while the S&P 500 returned 11.11%. This means that the
average equity fund investor grew a $100,000 investment
to $296,556, while the growth of $100,000 invested in the
S&P 500 would have been $2,358,275. Even better, we see
that a simulated passive investor who owned an all-equity,
small-value-tilted, globally diversified index portfolio such
as IFAs Index Portfolio 100 would have grown a $100,000
investment to $3,272,448 over the 30-year period.31
These self-defeating practices of active investors

unnecessarily increase their risk, expenses, taxes, and
anxiety. Most importantly, the sport of speculation
deprives investors of the returns they could earn if they
would simply buy and hold a passively managed blend
of globally diversified index funds matched to their risk
capacity.
Most investors would be better off in an index fund.

Peter Lynch, famous stock picker, Barrons,

page 15, April 2, 1990
Step 2: Nobel Laureates

Defer to the Higher Knowledge of Academia
Active investors disregard some of historys most
important lessons. Most do not read the peer-reviewed
academic studies and Nobel Prize-winning economic
research available. They instead rely on media messages to
guide their investing decisions, largely unaware of the fact
that media outlets profit handsomely from the advertising
dollars of online brokers, trading services and active trader
publications that encourage us to trade. Nearly 300 years
of statistical, scientific and economic research explain why
investors who buy, hold and rebalance an investment in
global capitalism reap rewards in proportion to the risks
they take. Three centuries of study from notable scientists
and researchers regarding risk, probability theory, statistics,

the random nature of prices and asset-pricing theory have
been painstakingly studied, analyzed and summarized by
the legends of financial science, some of whom are depicted
below. Collectively, these great minds have delivered to us
a method of investing that is founded upon the principles
of market efficiency, the returns of capital markets, and
the Invisible Hand which guides market forces, prices,
allocation of resources, the cost of capital, and the returns
of capitalism. Investing according to the findings of these
legends enables you to be a better investor.
Blaise Pascal
Adam Smith
Louis Bachelier
Harry Markowitz
William Sharpe
Merton Miller
Friedrich von Hayek
Paul Samuelson
Eugene Fama
Kenneth French
David Booth
Rex Sinquefield
John Bogle
Burton Malkiel
Michael Jensen
Step 3: Stock Pickers

Accept That Stock Pickers Do Not Beat the Market
The financial press largely focuses on the daily
movements of stocks and markets, showering rewards
on those who are lucky enough to be in the right place
at the right time. But it is virtually impossible for a
stock picking fund manager or individual stock picking
investor to consistently predict and invest in the stocks
that will be future winners, based on the tenets of market
efficiency. Stock pickers tend to be overly confident
in their skill to generate alpha (defined as any return
above the benchmark return), but studies have shown

that their winning performance is usually due to luck,
not skill. Professors Laurent Barras, Olivier Scaillet and
Russell Wermers conducted a study32 of 2,076 mutual fund
managers over a 32-year period. They found that from 1975
2006, 99.4% of these managers displayed no evidence
of stock picking skill, and the 0.6% of managers who did
outperform the index were statistically indistinguishable
from zero. In other words, they were just lucky.
If there are 10,000 people looking at the stocks and trying to pick winners, well, one in
10,000 is going to score, by chance alone, a great coup, and thats all thats going on. Its
a game, its a chance operation, and people think they are doing something purposeful
but theyre really not.

Merton Miller, Ph.D., Nobel Laureate, PBS Nova

Special, The Trillion Dollar Bet, 2000
Step 4: Time Pickers

Accept That Time Pickers Cannot Time the Market
Time pickers (market timers) mistakenly believe they can
predict the future movement of the stock market, moving
into the market before it goes up and getting out before
it goes down. Such decisions usually do not fare well,
because they are based on the fallacy that the direction of
future price movements can be predicted. At any point
in time, any investor can only know the current and past
price of any given security. Nonetheless, market timing
can be alluring, likely because investors dont understand
that the market continuously sets prices in response to
news, which is unpredictable.
must be correct 74% of the time in order to outperform a

passive portfolio at a comparable level of risk.33 In 1992, SEI
Corporation updated Sharpes study to include the average
9.4% stock return from the period 1901 1990. This study
determined that gurus must be right at least 69% of the time.34
CXO Advisory Group tracks public forecasts of selfproclaimed market timing gurus. The chart below shows
the percentage grades of 28 market timers who had made
more than 100 forescasts from 2000 through 2012. The
study shows that not one of the gurus was able to meet
Sharpes requirement of 74% accuracy, or SEIs minimum
69%, thereby failing to delivery accuracy sufficient to beat
a simple index portfolio.35
In a study titled, Likely Gains from Market Timing,

Nobel Laureate William Sharpe concluded a market timer
Step 5: Manager Pickers

Realize That Winning Managers Were Just Lucky
Active investors unnecessarily increase their risk, expenses,
taxes, and anxiety. Numerous studies have shown actively
managed investments generally carry more risk and lower
returns than globally diversified, risk-calibrated index
portfolios. Despite this fact, investors frequently fall
prey to the allure of past winners, hiring the hottest new
fund managers only to fire them later because their past
performance doesnt persist in subsequent periods.
Firms by Plan Sponsors, reveals the negative impact of

manager picking. The results of hiring 8,755 managers
shown below, illustrate that during the 10-year period
from 1994 through 2003, managers that were hired had
outperformed their benchmarks by 2.91% over the three
years before being hired. However, over the following three
years the managers underperformed their benchmarks
by 0.47% per year. Plan sponsors often proceeded to fire
their underperforming managers in favor of other recent
top performers, only to repeat the cycle again. The study
concluded, In light of such large transaction costs and
positive opportunity costs, our results suggest that the
termination and selection of investment managers is an
exercise that is costly to plan beneficiaries.36
A 10-year study conducted by Amit Goyal of Emory

University and Sunil Wahal of Arizona State University
found that manager hiring and firing decisions made
by consultants, board members and trustees were a
complete waste of time and money. The study, The
Selection and Termination of Investment Management
Most people think they can find managers who can outperform, but most people are
wrong. I will say that 85% to 90% of managers fail to match their benchmarks, if you
properly specify their benchmarks.

Jack Meyer, former Harvard Management CEO,

Harvard University Endowment
Businessweek.com, Interview Excerpt, Dec. 27, 2004
10
Step 6: Style Drifters

Comprehend Active Management Style Drift
Style drift occurs when an active manager drifts from
a specific style, asset class or index that is described as
the stated investment purpose of a fund. Style drift is
a serious problem for investors who believe they are
invested in a portfolio that matches their risk capacity.
Since managers of active funds seek to outperform the
benchmark, they often wander outside the boundaries
of the benchmark, altering the funds exposure to risk
and its volatility of returns.
below. In the 33-year period from 1982 to 2014, Magellan

morphed and evolved several times. For example, in mid1995, the fund looked like a large value fund, despite the
fact that its benchmark was the large blend S&P 500.
In contrast to the style drifting tendencies of actively
managed funds like Fidelitys Magellan, passively managed
funds (specifically those provided by DFA) adhere to strict
rules of construction and are held constant regardless
of market conditions. The figure on the bottom shows
the relative style purity of the DFA U.S. Large Company
Portfolio, which also has the S&P 500 as its benchmark.
One particularly egregious example of style drift is

the Fidelity Magellan Fund as shown in the top figure
11
Step 7: Silent Partners

Recognize The Partners in Your Returns
There are many silent partners that quietly but determinably
eat away at an active investors returns pie. A partial list of
silent partners that erode investors returns includes state and
federal taxes, sales commissions, mutual fund expense ratios,
fund turnover, and transaction costs.
Although most index funds are tax efficient by nature, some

indexes can be further tax-managed to save an investor
more in taxes. Tax-managed index funds are efficient at
offsetting realized gains with realized losses, deferring the
realization of net capital gains and minimizing the receipt
of dividend income. The benefit is that unrealized capital
gains remain a growing part of the net asset value of a fund
and assists in overall wealth accumulation.
A John Bogle study concluded that over a 25-year period,

$10,000 invested in the average managed equity fund grew
to a pre-tax value of $108,300, and an after-tax value of
$71,700. In contrast, $10,000 invested in the S&P 500 grew
to a pre-tax value of $181,800 and an after-tax value of
$159,000.37
Part of the disparity in ending wealth is due to active
managers charging higher fees than passive managers as
compensation for their perceived skill. In both U.S. and
non-U.S. strategies, the average actively managed fund is
more expensive than the average passive fund.
The bar chart reveals the disparity in average expense ratios
between actively managed mutual funds and IFA Index
Portfolio 60. As of December 2014, a similar portfolio of
actively managed funds would have been more than three
times as costly as IFA Index Portfolio 60.
Turnover is also a silent devourer of wealth. Active mutual
funds are known to have higher turnover rates than passive
funds, creating tax liabilities that erode returns. Even for
non-taxable investors, high turnover can be expensive.
A recent article in the Financial Analysts Journal stated
that the average annual cost of trading incurred by equity
mutual funds was 1.44%, which even exceeds the average
expense ratio of 1.19%.38
Some of active managements true believers will shift assets from expensive products to
more reasonably priced products. Impetus for this move will be the growing realization
that high fees sap the performance potential of even skillful managers.
Richard M. Ennis, editor, Financial Analysts Journal, as quoted
in John C. Bogles The Little Book on Common Sense Investing
12
Step 8: Riskese
Understand How Risk, Return and Time are Interconnected
Index funds investors are optimally rewarded for
understanding and shouldering stock market risk. In fact,
the very reason investors should expect to earn a return is
because of the risks they take. The key is to take the risks
that have shown to compensate investors and to diversify
away uncompensated risks. Stock concentration, fund
manager speculation, performance chasing, market
timing, and sector concentration are uncompensated
risks that carry no additional expected return beyond
that of a market portfolio.
for a spectrum of the 100 IFA Index Portfolios

(numbered) and their composite indexes (lettered)
for a 50-year time period. Also shown are the indexes
that IFA underweights (letters in squares). These asset
classes are underweighted because they have shown to
deliver higher risk without an adequate corresponding
return. For example, the U.S. Small Growth Index carried
significant risk but had lower returns than the Emerging
Markets Value Index. The IFA Index Portfolios are
comprised of funds that enable reasonable returns for
the risks involved. This is why investors should take on
as much of the right risks as their risk capacity allows,
rebalance and just hold on for as long as they can.
The beneficial relationship between risk and return for

passive investors is set forth in the scatter plot shown
below. The chart plots the risk and return characteristics
U.S.
Total
Market*
Some investments do have higher expected returns than others. Which ones? Well, by
and large theyre the ones that will do the worst in bad times.

William F. Sharpe

Money magazine, July 2007
13
Step 9: History
Historical Risks and Returns of Indexes
Historical stock market data provides investors with a
powerful set of tools for constructing portfolios that can
maximize expected returns at given levels of risk. By
analyzing the historical returns for various asset classes,
including stocks, bonds, private equity, real estate, and
even precious metals, an investor can see the difference
between compensated and uncompensated risk over time.
The chart below shows the annualized returns and risk for
value, blend and growth indexes around the world over
various periods of time: 86 years of history for U.S. large
and small capitalization stocks, 39 years of stock history for
non-U.S. developed markets, and 25 years of stock history
for emerging markets. The chart illustrates the impact of
size and value investing across global asset classes. Across
each asset class shown, small and value indexes carried
increased risk and return characteristics. IFAs Index
Portfolios tilt towards small and value indexes, allowing
clients to increase their expected return without increasing
their overall stock to bond allocation.
Most investors tend to make investment decisions based

on the most recent 1, 3, and 5-year returns and assume
that recent past performance will persist. But long-term
data can be more valuable than short-term data.
Those who are ignorant of investment history are bound to repeat it. Historical
investment returns and risks of various asset classes should be studied. Investment
results for an asset over a long enough period (greater than 20 years) are a good guide to
the future returns and risks of that asset. Further, it should be possible to approximate
the future long-term return and risk of a portfolio consisting of such assets.

William Bernstein, The Intelligent Asset Allocator
14
Step 10: Risk Capacity

Analyze Your Five Dimensions of Risk Capacity
In order to optimize investment outcome from a risk
and return perspective, it is IFAs view that investors
should take on as much risk as their risk capacity allows.
Risk capacity can be regarded as a measurement of an
investors ability to earn stock market returns. The
problem is that most investors invest without a clear
understanding of risk or with an improper measure of
how much risk is right for them.
results of the survey provide a personalized Risk Capacity

Score, which is based on the following five dimensions
for each investor: time horizon and liquidity needs,
attitude toward risk, net worth, income and savings rate,
and investment knowledge. This score is the primary
tool IFA uses to determine the proper asset allocation
for each client. A higher score suggests a capacity of
tolerating high risk investing to obtain the potential for
higher returns. A lower score indicates a risk aversion
and the need to invest more conservatively. Each score
corresponds to one of IFAs 100 Index Portfolios.
Through IFAs Risk Capacity Survey at ifa.com, investors

learn the amount of risk that is appropriate for them. The
Five Dimensions of Risk Capacity
15
Step 11: Risk Exposure

Analyze Your Six Dimensions of Risk Exposure
To achieve optimal results, investors need to match their
Risk Capacity Score with a specific risk exposure. At IFA,
we call this process, matching people with portfolios.
Many investors choose a common 60/40 (stock/bond)
asset allocation, regardless of their risk capacity. A more
prudent strategy is to invest in a portfolio that directly
corresponds to a particular risk capacity.
This is accomplished through exposure to six dimensions

of riskdimensions which have been responsible for
approximately 96% of returns.39 Based on the extensive
research of Eugene Fama and Kenneth French, these
dimensions are: exposure or sensitivity to the market, as
a whole, the degree to which the portfolio is tilted toward
size (market capitalization), value (book-to-market
ratio), and direct profitability (gross profits scaled by
book value) of the equity holdings, as well as exposure
to term and default risk for the fixed income holdings.
Each of IFAs Index Portfolios offers a sophisticated riskappropriate approach, capturing risk exposure in order to
maximize expected returns at a given level of risk exposure.
IFAs 100 Index Portfolios cover the spectrum of risk

and expected return, with portfolios ranging from very
high risk to very low risk. Each IFA Index Portfolio is
constructed with a specific blend of asset class index
funds that capture a quantifiable level of risk exposure.
Six Dimensions of Risk Exposure
16
Step 12: Invest and Relax

Rebalance, Tax Loss Harvest, Glide Path, and Asset Locate
IFAs 100 risk-calibrated Index Portfolios allow investors
to step off the expensive and emotional roller coaster of
active investing and step up to a more prudent strategy that
implements the Nobel Prize-winning research referred to
as Modern Portfolio Theory.
IFAs clients enjoy the benefits of investing in riskappropriate, style-pure index portfolios that carry more
than 87 years of risk and return data. These portfolios are
formulated using investment science based on economic
theories and isolated risk factors that have been shown to
carry higher returns over time.
Rebalance
IFAs clients benefit from strategies that facilitate investment success. In particular, IFAs
ongoing professional account management includes quarterly analysis for rebalancing
opportunities to ensure that portfolio risk exposure remains in line with an individuals risk
capacity.
Tax Loss Harvest
An additional value added feature available to IFAs clients is opportunistic tax loss harvesting.
By selling funds that have experienced significant losses, investors can bank capital losses
to offset future gains. Once the IRS wash sale rules have been met, the funds are repurchased.
Careful consideration is given to the appropriateness of this strategy on a case-by-case basis.
Glide Path
IFAs clients may choose to take advantage of a sophisticated Glide Path feature to their
portfolios, creating a set it and forget it approach for a successful and less stressful
investment strategy. When clients choose the Glide Path option, they will automatically
experience a reduction of one risk level each year, thus permitting a smooth and effortless
glide into retirement.
Asset Location
Just as important as asset allocation is asset location. For a client who has a mixture of
accounts, such as taxable, traditional IRAs and Roth IRAs, taxes can be minimized by
constructing an overall portfolio that includes multiple investment vehicles located in
different types of accounts. IFA evaluates each account to determine if it should be a
stand-alone or part of an asset location strategy.
Retirement Analyzer
A retirement analysis utilizing Monte Carlo simulation helps clients understand key
factors in retirement investing. IFA adds these significant enhancements to its suite of
services in order to provide a high standard of care to clients who entrust the management
of their valued assets to the firm.
In summary, clients of Index Fund Advisors are able to invest confidently and comfortably
as they step off the expensive, emotional roller coaster of active investing.
17
IFA Index Portfolios

IFA offers 100 individualized, diversified Index
Portfolios allocated among three broad asset classes:
fixed income (bonds), U.S. stocks, and non-U.S. stocks.
The stocks are further divided by size and value.
The tables on the next two pages show the risk and return
for the same 20 Index Portfolios (starting with Portfolio
100), including the highest and lowest rolling period
returns for each Portfolio.
General asset allocations for 20 of these portfolios are

presented below. The portfolios are labeled 5 through
100 in five-point increments. IFA Index Portfolio 5,
which has the lowest expected risk and return, is tilted
toward fixed income with a minor investment in stocks.
Conversely, IFA Index Portfolio 100, which has the
highest expected risk and return, has no fixed income
and the stock indexes are tilted toward small and value
companies in the U.S. and international markets.
Following the Risk/Return Data are fact sheets for four IFA
Index Portfolios. The data for each portfolio consists of a list
of the indexes contained in the portfolios, simulated returns
and volatility data, charts that represent annual returns
and growth of $1, corresponding annualized returns, and
a 50-year monthly rolling period analysis, which provides
a simulation of passive investor experiences. After the fact
sheets are the disclosures for backtested performance data
and the sources and description of data used to simulate
risk and return characteristics, including the mutual funds
needed to implement these portfolios.
The best way in my view is to just buy a low-cost index fund and keep buying it regularly
over time, because youll be buying into a wonderful industry, which in effect is all of
American industry People ought to sit back and relax and keep accumulating over time.
-Warren Buffett, MarketWatch, May 7, 2007
18
IFA Index Portfolio Data

Risk & Reward Table
19
-3.43%
3.50%
3.68%
3.82%
3.95%
4.06%
4.15%
4.22%
4.28%
4.31%
4.33%
4.33%
4.32%
4.28%
4.24%
4.12%
3.77%
3.40%
3.03%
2.64%
2.22%
7.10%
7.29%
7.28%
7.26%
7.22%
7.17%
7.11%
7.04%
6.95%
6.86%
20
6.75%
6.63%
6.50%
6.32%
5.98%
5.63%
5.27%
4.90%
4. 5 2 %
4. 1 3 %
3. 7 3 %
1.38%
1.94%
1.70%
1.43%
1.15%
0.86%
0.54%
0.21%
-0.15%
-0.52%
-0.91%
-1.32%
-1.75%
0 .7 8 %
1 .4 3 %
0. 7 9 %
-0.19%
-1.20%
-2.21%
-3.25%
0.48%
0.13%
-1.59%
-3.32%
-2.44%
-2.96%
-5.55%
-8.33%
-5.05% -11.08%
-6.78% -13.82%
-8.52% -16.53%
-4.30% -10.25% -19.21%
-5.36% -11.99% -21.87%
-6.44% -13.73% -24.50%
-7.54% -15.47% -27.11%
-8.65% -17.22% -29.70%
-9.78% -18.97% -32.25%
-2.21% -10.94% -20.73% -34.78%
-2.69% -12.10% -22.49% -37.29%
-3.19% -13.29% -24.25% -39.76%
-3.71% -14.50% -26.02% -42.21%
-4.26% -15.74% -27.80% -44.63%
-4.84% -16.99% -29.58% -47.02%
-5.44% -18.27% -31.37% -49.38%
-6.63% -16.09% -26.08% -43.32%
5.81%
6.28%
6.74%
7.18%
7.62%
8.05%
8.46%
8.87%
9.27%
9.65%
10.03%
10.40%
10.75%
11.10%
11.43%
11.76%
12.07%
12.38%
12.67%
12.95%
9.80%
3.08%
3.33%
3.75%
4.28%
4.89%
5.54%
6.23%
6.95%
7.68%
8.42%
9.18%
9.94%
10.70%
11.47%
12.25%
13.03%
13.82%
14.61%
15.40%
16.20%
15.00%
2 1 .9 5 % 1 7 . 42 %
2 2 .8 3 % 1 8 . 03 %
2 4. 9 5 % 1 8 . 64 %
27.11% 19.51%
29.28% 20.63%
31.49% 21.75%
33.72% 22.87%
35.97% 23.99%
38.26% 25.10%
40.58% 26.21%
42.92% 27.32%
45.30% 29.76%
47.70% 32.29%
51.31% 34.85%
55.40% 37.45%
59.58% 40.10%
63.88% 42.78%
68.28% 45.51%
72.79% 48.29%
77.43% 51.11%
61.01% 37.41%
1 5 . 04 % 14 . 5 8%
1 5 . 57 % 15 . 1 2%
1 6 .1 0 % 1 5 . 67 %
16.62% 16.20%
17.19% 16.73%
18.47% 17.54%
19.75% 18.51%
21.04% 19.51%
22.32% 20.59%
23.61% 21.66%
24.89% 22.74%
26.18% 23.82%
27.47% 24.90%
2 8 . 7 6 % 2 5 . 9 8%
3 0 . 0 5 % 2 7 . 0 6%
3 1 . 3 5 % 2 8 . 1 4%
3 2 . 6 4 % 2 9 . 2 3%
3 3 . 9 4 % 3 0 . 3 2%
3 5 . 2 3 % 3 1 . 4 1%
3 6 . 5 3 % 3 2 . 5 0%
33.40% 29.72%
10. 7 0%
11. 2 7%
1 1. 84%
1 2. 41 %
12 . 97 %
13 . 68 %
14 . 44 %
15 . 19 %
15 . 94 %
16 . 69 %
17 . 43 %
18 . 17 %
18 . 91 %
1 9. 6 4%
2 0. 3 6%
2 1. 0 8%
2 1. 8 0%
2 2. 5 1%
2 3. 2 2%
2 3. 9 2%
19.49%
8. 65 %
9. 22 %
9 .8 5%
10.48%
11.10%
11.71%
12.32%
12.95%
13.56%
14.18%
14.79%
15.39%
15.98%
16.58%
17.16%
17.74%
18.31%
18.88%
19.45%
20.00%
1 8. 2 6%
IFA Index Portfolio Data
High-Low Comparison Table
21
9.76
Standard Deviation (%) 10.27

(Annualized Volatility)
13.61
18.38
1.18
21.21
-8.57
0.91
22.72
22.66
1.23
11.35
16.51
1.58
16.29
12.14
1.77
18.87
7.50
2.06
17.05
10.17
6.94
15.89
12.92
16.23
12.81
$414
22.45
11.09
9,433
Global
Bonds
0%
Global
Stocks
100
70.33 413.52
Sources, Updates, and Disclosures: ifabt.com. Returns net of IFA & DFA fee. Past performance does not guarantee future results.
Growth of $1: 50 Years (1/1/1965 - 12/31/2014) - Log Scale
Annual Returns: 50 Years (1/1/1965 - 12/31/2014)
29.31
3.32
Annualized Return (%)
1.29
1.03
Growth of $1 ($)
Simulated Returns and Volatility Data
Suitable for investors who have at least 15 years before

needing approximately 20% of their investments and are
willing to accept a very high degree of volatility in
exchange for maximum portfolio growth potential.
Most Aggressive
IFA Index Portfolio 100
Apr 65
4
1967
1968
1969
1970
1971
1972
1973
15 Yrs
15 Yrs
15 Yrs
15 Yrs
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.37%
4.12%
7.06%
16.87%
15.11%
13.45%
12.71%
12.70%
12.35%
12.53%
12.92%
12.59%
12.35%
12.70%
12.64%
13.09%
13.38%
13.49%
14.47%
14.31%
13.36%
12.81%
44.97%
77.26%
109.62%
126.81%
82.48%
54.80%
44.23%
37.95%
36.51%
28.60%
23.84%
24.41%
20.42%
22.07%
21.04%
20.75%
17.77%
18.45%
12.71%
6.02%
4.19%
0.00%
Median
Growth
of $1
$1.01
$1.04
$1.07
$1.17
$1.33
$1.46
$1.61
$1.82
$2.01
$2.29
$2.64
$2.91
$3.20
$3.72
$4.17
$4.95
$5.80
$6.67
$14.93
$55.33
$150.53
$413.52
Lowest
Rolling
Period
Date
10/08-10/08
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
1/69-12/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
3/95-2/09
3/94-2/09
3/89-2/09
3/79-2/09
3/69-2/09
1/65-12/14
1975
1976
Growth
Lowest
of $1 in
Rolling
Lowest
Period
Period
Return
$0.77
-22.59%
$0.63
-37.19%
$0.52
-47.73%
$0.51
-49.38%
$0.47
-31.37%
$0.55
-18.27%
$0.64
-10.39%
$0.76
-5.44%
$0.66
-6.78%
$0.87
-1.97%
$1.07
0.83%
$1.10
1.08%
$1.41
3.50%
$1.29
2.32%
$1.51
3.51%
$1.75
4.41%
$2.18
5.72%
$2.14
5.21%
$4.09
7.29%
11.50% $26.20
10.74% $59.08
12.81% $413.52
1974
1978
10
11
12
25th*
11.23%
13
14
50th*
13.49%
15
16
17
75th*
16.86%
18
19
20
95th*
19.43%
Annualized Returns for 15-Year Monthly Rolling Periods (%)
5th*
8.10%
21
22
23
24
25
*Percentile ranking of
all the rolling periods.
1. 15-years represents the estimated average holding period for investors who score 100 on the Risk Capacity Survey at ifa.com.
2. The Median Annualized Returns, Return Range, and Median Growth of $1 shown for 1, 3, and 6 month periods are not annualized.
Sources, Updates, and Disclosures: ifabt.com. Returns are net of IFA & DFA fees. Past performance does not guarantee future results.
10
20
30
40
50
60
70
80
90
100
110
120
1981
Growth
of $1 in
Highest
Period
$1.22
$1.40
$1.62
$1.77
$2.28
$2.55
$3.21
$4.08
$4.77
$5.22
$5.84
$7.71
$8.54
$11.03
$13.93
$18.49
$19.18
$24.18
$38.35
$126.74
$261.12
$413.52
1980
Mar 80
1979
Highest
Highest
Rolling
Rolling
Period
Period
Return
Date
22.38%
1/75-1/75
40.08%
3/09-5/09
61.90%
3/09-8/09
77.43%
3/09-2/10
51.11%
3/09-2/11
36.53%
8/84-7/87
10/74-9/78 33.84%
32.50%
8/82-7/87
1/75-12/80 29.73%
26.64%
8/82-7/89
1/75-12/82 24.67%
1/75-12/83 25.48%
23.92%
9/77-8/87
1/75-12/85 24.39%
1/75-12/86 24.55%
10/74-9/87 25.16%
1/75-12/88 23.49%
10/74-9/89 23.66%
10/74-9/94 20.00%
1/75-12/04 17.52%
1/75-12/14 14.93%
1/65-12/14 12.81%
1977
Feb 80
Jan 80
Dec 79
15-Year 1 Monthly Rolling Periods: 50 Years (1965 to 2014) Total of 421 Rolling Periods
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15 1
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
Number of:
Rolling Return
(High
Yrs Months Periods (50th %ile) minus Low)
Rolling Period Return Data: 50 Years (1965 to 2014)
1966
Mar 65
3
1965
Feb 65
Jan 65
Examples of 15-Year Monthly Rolling Periods1
Based on 50 Years of Monthly Data: 600 Months (January 1, 1965 to December 31, 2014)
Simulated Passive Investor Experiences (SPIEs)
22
2.56
7.76
Standard Deviation (%)

7.66
21.76
1.22
10.38
14.07
1.14
15.46
-6.08
0.94
16.99
17.56
1.18
8.70
12.52
1.42
12.18
9.48
1.57
13.87
6.66
1.91
12.60
8.89
5.50
11.98
11.38
12.28
11.31
$212
16.75
9.83
3,485
Global
Bonds
25%
Global
Stocks
75%
43.47 212.01
1.03
Growth of $1 ($)
Suitable for investors who have at least 13 years before

needing approximately 20% of their investments and are
willing to accept a higher degree of volatility in order to
achieve higher portfolio growth potential.
Moderately Aggressive
Apr 65
4
1967
1968
1969
1970
1971
1972
13 Yrs
13 Yrs
13 Yrs
13 Yrs
1973
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.25%
3.54%
6.14%
13.82%
12.91%
11.70%
10.95%
11.14%
10.77%
10.94%
11.25%
11.00%
10.73%
11.03%
11.09%
11.26%
11.52%
11.75%
12.96%
12.78%
11.87%
11.31%
33.73%
54.95%
79.87%
92.68%
59.94%
42.16%
34.08%
29.75%
27.01%
22.03%
18.49%
18.89%
16.21%
17.41%
16.64%
16.38%
13.97%
14.64%
10.05%
4.55%
2.87%
0.00%
Median
Growth
of $1
$1.01
$1.04
$1.06
$1.14
$1.27
$1.39
$1.52
$1.70
$1.85
$2.07
$2.35
$2.56
$2.77
$3.16
$3.53
$4.00
$4.60
$5.29
$11.44
$36.93
$88.90
$212.01
Lowest
Rolling
Period
Date
10/87-10/87
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
1/69-12/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
3/95-2/09
3/94-2/09
3/89-2/09
7/83-6/13
3/69-2/09
1/65-12/14
1975
1976
Growth
Lowest
of $1 in
Rolling
Lowest
Period
Period
Return
$0.83
-16.74%
$0.73
-26.53%
$0.64
-35.83%
$0.63
-37.29%
$0.60
-22.49%
$0.68
-12.10%
$0.77
-6.23%
$0.87
-2.69%
$0.82
-3.26%
$1.03
0.39%
$1.19
2.18%
$1.23
2.36%
$1.50
4.15%
$1.42
3.24%
$1.63
4.14%
$1.85
4.84%
$2.22
5.88%
$2.20
5.39%
$3.95
7.11%
10.47% $19.84
10.00% $45.25
11.31% $212.01
1974
1978
1979
Highest
Highest
Rolling
Rolling
Period
Period
Return
Date
16.99%
1/75-1/75
28.42%
3/09-5/09
44.04%
3/09-8/09
55.40%
3/09-2/10
37.45%
3/09-2/11
30.05%
8/84-7/87
27.85%
7/82-6/86
27.06%
8/82-7/87
1/75-12/80 23.75%
22.42%
8/82-7/89
1/75-12/82 20.67%
1/75-12/83 21.25%
20.36%
9/77-8/87
1/75-12/85 20.65%
1/75-12/86 20.78%
10/74-9/87 21.22%
1/75-12/88 19.84%
10/74-9/89 20.04%
10/74-9/94 17.16%
1/75-12/04 15.02%
1/75-12/14 12.87%
1/65-12/14 11.31%
1977
Mar 78
Feb 78
Jan 78
Dec 77
10
11
12
25th* 50th*
9.79% 11.26%
13
14
15
75th*
14.96%
16
17
18
19
95th*
18.42%
5th*
7.32%
20
1981
Growth
of $1 in
Highest
Period
$1.17
$1.28
$1.44
$1.55
$1.89
$2.20
$2.67
$3.31
$3.59
$4.12
$4.50
$5.66
$6.38
$7.88
$9.63
$12.20
$12.60
$15.48
$23.75
$66.63
$126.93
$212.01
1980
21
22
23
24
25
10
20
30
40
50
60
70
80
90
100
110
120
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13 1
14
15
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
Number of:
Rolling Return
(High
1966
Mar 65
3
1965
Feb 65
Jan 65
23
5.25

1.14
5.46
14.20
1.10
7.05
9.77
0.96
10.05
-3.59
1.12
11.23
12.45
1.28
5.97
8.47
1.38
8.11
6.71
1.69
9.11
5.39
4.12
8.30
7.33
8.20
9.62
24.89
Global
Bonds
50%
Global
Stocks
50%
8.45
9.54
$95
11.31
8.15
95.24 909.31
1.02
1.80
Growth of $1 ($)
Suitable for investors who have 8 years before needing

approximately 20% of their investments and are willing to
accept a moderate degree of volatility in order to achieve
moderate portfolio growth.
Moderate
Mar 65
Apr 65
3
4
1967
1968
1969
1970
8 Yrs
8 Yrs
8 Yrs
8 Yrs
1971
1972
1973
Mar 73
Feb 73
Jan 73
Dec 72
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
0.99%
2.77%
5.09%
11.08%
10.29%
9.67%
9.23%
9.35%
9.11%
9.24%
9.33%
9.41%
9.22%
9.37%
9.36%
9.51%
9.80%
10.11%
11.32%
10.98%
10.14%
9.54%
22.90%
35.47%
51.72%
65.08%
39.94%
30.05%
25.68%
22.18%
19.46%
16.50%
14.23%
13.76%
12.36%
13.07%
12.57%
12.25%
10.56%
11.05%
7.55%
3.53%
1.82%
0.00%
Median
Growth
of $1
$1.01
$1.03
$1.05
$1.11
$1.22
$1.32
$1.42
$1.56
$1.69
$1.86
$2.04
$2.25
$2.42
$2.68
$2.93
$3.26
$3.70
$4.24
$8.54
$22.79
$47.66
$95.24
Lowest
Rolling
Period
Date
10/87-10/87
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
12/68-11/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
10/97-9/11
3/94-2/09
3/89-2/09
7/83-6/13
3/69-2/09
1/65-12/14
1975
Lowest
Rolling
Period
Return
-11.30%
-16.52%
-23.43%
-24.50%
-13.73%
-6.44%
-2.64%
-0.52%
-0.06%
2.38%
2.99%
3.17%
4.33%
3.73%
4.37%
4.90%
5.54%
5.25%
6.63%
8.88%
8.98%
9.54%
1974
1977
1978
Highest
Growth
Rolling
of $1 in
Period
Lowest
Date
Period
1/75-1/75
$0.89
1/75-3/75
$0.83
3/09-8/09
$0.77
7/82-6/83
$0.75
7/84-6/86
$0.74
8/84-7/87
$0.82
7/82-6/86
$0.90
8/82-7/87
$0.97
$1.00 10/81-9/87
4/80-3/87
$1.18
$1.27 10/81-9/89
$1.32 1/75-12/83
9/77-8/87
$1.53
$1.50 1/75-12/85
9/74-8/86
$1.67
$1.86 10/74-9/87
$2.13 1/75-12/88
$2.15 10/74-9/89
$3.61 10/74-9/94
$12.82 1/75-12/04
$31.19 12/66-11/06
$95.24 1/65-12/14
1976
Highest
Rolling
Period
Return
11.60%
18.95%
28.29%
40.58%
26.21%
23.61%
23.04%
21.66%
19.40%
18.88%
17.22%
16.93%
16.69%
16.81%
16.93%
17.15%
16.10%
16.30%
14.18%
12.40%
10.81%
9.54%
1979
25th*
7.30%
10
50th*
9.33%
11
12
13
75th*
12.83%
14
15
16
95th*
16.13%
17
18
19
5th*
5.18%
20
1981
Growth
of $1 in
Highest
Period
$1.12
$1.19
$1.28
$1.41
$1.59
$1.89
$2.29
$2.67
$2.90
$3.36
$3.56
$4.09
$4.68
$5.52
$6.54
$7.82
$8.09
$9.63
$14.18
$33.36
$60.60
$95.24
1980
21
22
23
24
25
10
20
30
40
50
60
70
80
90
100
110
120
0.08
0.25
0.5
1
2
3
4
5
6
7
81
9
10
11
12
13
14
15
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
Number of:
Rolling Return
(High
1966
Feb 65
1965
Jan 65
24
1.04
2.75

1.07
3.19
6.65
3.62
5.47
1.05
0.99
4.96
-1.09
1.07
5.46
7.35
1.14
3.19
4.36
1.21
4.10
3.83
1.45
4.55
3.77
2.92
4.19
5.51
4.73
7.66
13.23
Global
Bonds
75%
Global
Stocks
25%
4.91
7.52
$38
6.12
6.07
37.50 168.59
1.01
Growth of $1 ($)
Suitable for investors who have 5 years before needing

approximately 20% of their investments and are willing to
accept a conservative degree of risk for incremental
appreciation with emphasis on capital preservation.
Conservative
Apr 65
4
1967
1968
5 Yrs
5 Yrs
5 Yrs
5 Yrs
1969
1970
Mar 70
Feb 70
Jan 70
Dec 69
1971
1972
1973
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
0.69%
1.88%
3.52%
7.79%
7.56%
7.42%
7.23%
7.18%
7.40%
7.30%
7.48%
7.64%
7.70%
7.70%
7.70%
7.68%
7.91%
8.45%
9.47%
8.96%
8.17%
7.52%
12.12%
20.59%
28.48%
40.37%
25.68%
18.39%
17.76%
15.58%
13.65%
12.61%
11.02%
10.00%
9.20%
9.12%
8.98%
8.46%
7.85%
7.89%
5.83%
2.83%
0.88%
0.00%
Median
Growth
of $1
$1.01
$1.02
$1.04
$1.08
$1.16
$1.24
$1.32
$1.41
$1.53
$1.64
$1.78
$1.94
$2.10
$2.26
$2.44
$2.62
$2.90
$3.38
$6.11
$13.13
$23.15
$37.50
1975
Lowest
Lowest
Rolling
Rolling
Period
Period
Return
Date
10/87-10/87 -5.03%
-7.10%
9/08-11/08
9/08-2/09 -10.57%
3/08-2/09 -11.08%
-5.05%
3/07-2/09
-1.20%
3/06-2/09
0.45%
3/05-2/09
3/04-2/09
1.15%
2.55%
10/68-9/74
2.96%
11/07-10/14
3.27%
1/07-12/14
3.53%
3/00-2/09
3.77%
1/05-12/14
3.85%
3/98-2/09
4.25%
3/97-2/09
4.54%
1/02-12/14
4.55%
1/01-12/14
4.55%
1/00-12/14
5.27%
2/94-1/14
6.81%
1/85-12/14
7.70%
3/69-2/09
7.52%
1/65-12/14
1974
1977
1978
Highest
Growth
Rolling
of $1 in
Period
Lowest
Date
Period
4/80-4/80
$0.95
4/80-6/80
$0.93
$0.89 7/82-12/82
7/82-6/83
$0.89
7/84-6/86
$0.90
8/84-7/87
$0.96
7/82-6/86
$1.02
$1.06 9/81-8/86
4/80-3/86
$1.16
4/80-3/87
$1.23
4/80-3/88
$1.29
4/80-3/89
$1.37
4/80-3/90
$1.45
9/75-8/86
$1.52
9/74-8/86
$1.65
9/74-8/87
$1.78
$1.86 10/74-9/88
$1.95 10/74-9/89
9/74-8/94
$2.79
$7.22 1/75-12/04
$19.46 12/66-11/06
$37.50 1/65-12/14
1976
Highest
Rolling
Period
Return
7.09%
13.49%
17.90%
29.28%
20.63%
17.19%
18.21%
16.73%
16.19%
15.56%
14.29%
13.54%
12.97%
12.97%
13.22%
13.00%
12.40%
12.44%
11.10%
9.65%
8.59%
7.52%
1979
5th*
3.55%
10
75th*
9.38%
11
12
13
14
95th*
13.43%
15
16
17
18
19
25th* 50th*
5.85% 7.18%
20
1981
Growth
of $1 in
Highest
Period
$1.07
$1.13
$1.18
$1.29
$1.46
$1.61
$1.95
$2.17
$2.46
$2.75
$2.91
$3.14
$3.39
$3.83
$4.44
$4.90
$5.14
$5.81
$8.20
$15.84
$26.99
$37.50
1980
21
22
23
24
25
10
20
30
40
50
60
70
80
90
100
110
120
0.08
0.25
0.5
1
2
3
4
51
6
7
8
9
10
11
12
13
14
15
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
Number of:
Rolling Return
(High
1966
Mar 65
3
1965
Feb 65
Jan 65
IFA Target Date Index Portfolios

Target Date Index Portfolios are appropriate
investments for investors of all ages because they
provide a risk appropriate one-step solution.
They are designed to be a buy-and-hold, lifetime
investment. This means that this target date
investment strategy is to be held through all kinds of
market conditions, no matter how bad or good they
appear to be. Investors only need to select the target
From IFA Index Portfolio 90 to IFA Index Portfolio 30
Higher Risk
25
Lower Risk
Target Date Index

Portfolio 2055
40
35
Target Date Index

Portfolio 2045
35
30
Target Date Index

Portfolio 2040
40
25
Target Date Index

Portfolio 2035
45
20
Target Date Index

Portfolio 2030
50
15
Target Date Index

Portfolio 2025
55
10
Target Date Index

Portfolio 2020
60
5
0
RETIREMENT
70
75
10
80
15
85
90/10
85/15
80/20
75/25
70/30
65/35
60/40
55/45
Stock/Bond Allocation
50/50
45/55
40/60
45/65
30/70
Years After Retirement
65
Years Before Retirement
Target Date Index

Portfolio 2050
30
Suitable Age
date that is closest to the year they plan to retire. These

strategies enable investors to invest in a risk reducing
series of globally diversified asset allocations of stocks
and bonds that is appropriate for them. The portfolios
automatically reduce risk over time by decreasing the
allocation to stocks by 1% per year. IFA implements
the Index Portfolios by selecting and monitoring
lower-cost passively managed funds.
Target Date = Current Year + Years Before Retirement

Glide Path = Reduce One Portfolio Number For Each Passing Year
Assume: Retirement at age 65
Holders were four times less likely to trade out of their target-date investments during
the market plunge of 2008 than holders of other 401(k) investments.
- Target-Date Funds Take Over, Barrons, 7/5/2014
25
26
IFA Target Date Index Portfolio 2055
IP88
IP88
IP88
IP89
IP89
IP89
IP87
IP87
IP87
IP87
IP86
IP86
IP86
IP86
IP85
IP85
IP85
IP85
IP84
IP84
IP84
IP84
IP83
IP83
IP83
IP83
IP82
IP82
IP82
IP82
IP81
IP81
IP81
IP81
IP80
IP80
IP80
IP80
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.35%
3.87%
6.73%
15.39%
14.17%
12.57%
11.74%
11.99%
11.50%
11.59%
11.90%
11.62%
11.34%
11.56%
11.54%
11.82%
12.02%
12.11%
13.14%
12.58%
11.46%
10.55%
39.49%
67.18%
96.31%
111.54%
71.93%
48.35%
38.34%
33.15%
31.35%
24.73%
20.57%
20.90%
17.30%
18.95%
17.94%
17.41%
14.89%
15.40%
10.37%
4.74%
2.85%
0.00%
Lowest
Rolling
Median
Period
Growth
of $1
Date
$1.01 10/08-10/08
$1.04 9/08-11/08
9/08-2/09
$1.07
3/08-2/09
$1.15
3/07-2/09
$1.30
3/06-2/09
$1.43
3/05-2/09
$1.56
3/04-2/09
$1.76
$1.92 1/69-12/74
$2.15 1/68-12/74
3/01-2/09
$2.46
3/00-2/09
$2.69
3/99-2/09
$2.93
3/98-2/09
$3.33
3/97-2/09
$3.71
3/96-2/09
$4.27
$4.90 10/97-9/11
3/94-2/09
$5.56
3/89-2/09
$11.82
7/83-6/13
$35.02
$76.78 12/68-11/08
$150.48 1/65-12/14
IP77
IP77
IP77
IP77
Highest
Rolling
Period
Date
1/75-1/75
3/09-5/09
3/09-8/09
3/09-2/10
3/09-2/11
8/84-7/87
10/74-9/78
8/82-7/87
1/75-12/80
8/82-7/89
1/75-12/82
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
1/75-12/14
1/65-12/14
IP78
IP78
IP78
IP78
Lowest
Growth
Rolling
of $1 in
Period
Lowest
Return
Period
-19.48%
$0.81
-32.41%
$0.68
-42.56%
$0.57
-44.15%
$0.56
-27.13%
$0.53
-14.97%
$0.61
-7.86%
$0.72
-3.49%
$0.84
-4.77%
$0.75
-0.38%
$0.97
2.06%
$1.18
2.26%
$1.22
4.40%
$1.54
3.29%
$1.43
4.34%
$1.66
5.13%
$1.92
6.25%
$2.34
5.77%
$2.32
7.54%
$4.28
10.53% $20.16
9.91% $43.75
10.55% $150.48
IP79
IP79
IP79
IP79
IP75
IP75
IP75
IP75
Highest
Rolling
Period
Return
20.01%
34.76%
53.75%
67.39%
44.80%
33.38%
30.48%
29.65%
26.57%
24.35%
22.63%
23.16%
21.70%
22.24%
22.28%
22.54%
21.14%
21.16%
17.91%
15.27%
12.76%
10.55%
IP76
IP76
IP76
IP76
Growth
of $1 in
Highest
Period
$1.20
$1.35
$1.54
$1.67
$2.10
$2.37
$2.90
$3.66
$4.11
$4.60
$5.11
$6.52
$7.13
$9.11
$11.17
$14.05
$14.65
$17.80
$26.96
$71.05
$121.78
$150.48
1981
13
14
15
16
17
18
19
20
22
23
1.39-years represents the suggested holding period for this target date index portfolio, which corresponds to the number of years until retirement.
2.The Median Annualized Returns, Return, Range, and Median Growth of $1 shown for 1, 3, and 6 month periods are not annualized.
Sources, Updates, and Disclosures: ifabt.com. Returns net of IFA & DFA fees. Past performance does not guarantee future results.
21
24
25
IP80
IP80
IP80
IP80
IP79
IP79
IP79
IP79
IP78
IP78
IP78
IP78
IP77
IP77
IP77
IP77
IP76
IP76
IP76
IP76
IP75
IP75
IP75
IP75
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.32%
3.76%
6.53%
14.77%
13.70%
12.33%
11.44%
11.67%
11.15%
11.32%
11.55%
11.31%
11.02%
11.25%
11.29%
11.44%
11.67%
11.75%
12.81%
12.26%
11.12%
10.20%
37.45%
62.73%
90.38%
104.73%
67.44%
45.83%
36.35%
31.53%
29.46%
23.43%
19.52%
19.82%
16.49%
18.05%
17.09%
16.56%
14.22%
14.67%
9.86%
4.54%
2.61%
0.00%
$1.01
$1.04
$1.07
$1.15
$1.29
$1.42
$1.54
$1.74
$1.89
$2.12
$2.40
$2.62
$2.84
$3.23
$3.61
$4.09
$4.69
$5.29
$11.13
$32.10
$67.99
$128.29
Median
Growth
of $1
Lowest
Rolling
Period
Date
10/87-10/87
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
1/69-12/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
10/97-9/11
3/94-2/09
3/89-2/09
7/83-6/13
12/68-11/08
1/65-12/14
IP72
IP72
IP72
IP72
Highest
Rolling
Period
Date
1/75-1/75
3/09-5/09
3/09-8/09
3/09-2/10
3/09-2/11
8/84-7/87
7/82-6/86
8/82-7/87
1/75-12/80
8/82-7/89
1/75-12/82
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
1/75-12/14
1/65-12/14
IP73
IP73
IP73
IP73
Lowest
Growth
Rolling
of $1 in
Period
Lowest
Return
Period
-18.52%
$0.81
-30.29%
$0.70
-40.18%
$0.60
-41.72%
$0.58
-25.36%
$0.56
-13.75%
$0.64
-7.05%
$0.75
-2.97%
$0.86
-4.08%
$0.78
0.08%
$1.01
2.30%
$1.20
2.48%
$1.25
4.50%
$1.55
3.44%
$1.45
4.43%
$1.68
5.19%
$1.93
6.18%
$2.31
5.77%
$2.32
7.47%
$4.22
10.22% $18.52
9.70% $40.51
10.20% $128.29
IP74
IP74
IP74
IP74
IP70
IP70
IP70
IP70
Highest
Rolling
Period
Return
18.93%
32.45%
50.20%
63.01%
42.08%
32.08%
29.30%
28.56%
25.38%
23.51%
21.83%
22.31%
20.99%
21.49%
21.52%
21.75%
20.40%
20.43%
17.33%
14.76%
12.30%
10.20%
IP71
IP71
IP71
IP71
1981
Growth
of $1 in
Highest
Period
$1.19
$1.32
$1.50
$1.63
$2.02
$2.30
$2.80
$3.51
$3.88
$4.38
$4.85
$6.12
$6.72
$8.51
$10.37
$12.91
$13.46
$16.26
$24.44
$62.11
$103.64
$128.29
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
12
11
10
10
0
9
20
10
30
20
40
30
50
40
60
50
70
60
100
80
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
70
IP81
IP81
IP81
IP81
34-Year Monthly Rolling Periods: 50 Years (1/1/1965 to 12/31/2014) Total of 193 Rolling Period
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
20
30
40
50
90
IP82
IP82
IP82
IP82
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
80
IP83
IP83
IP83
IP83
Rolling Period Return Data: 50 Years (1/1/1965 to 12/31/2014)
IP84
IP84
IP84
IP84
Suitable Age: 30-34 | Years Before Retirement: 34 | For 2015

Glide Path From IFA Index Portfolio 84 to 50
90
100
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
IP88
IP89

27
IP78
IP78
IP78
IP79
IP79
IP79
IP77
IP77
IP77
IP77
IP76
IP76
IP76
IP76
IP75
IP75
IP75
IP75
IP74
IP74
IP74
IP74
IP73
IP73
IP73
IP73
IP72
IP72
IP72
IP72
IP71
IP71
IP71
IP71
IP70
IP70
IP70
IP70
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.29%
3.66%
6.32%
14.22%
13.23%
11.92%
11.10%
11.22%
10.83%
11.00%
11.20%
10.97%
10.65%
10.92%
10.96%
11.04%
11.28%
11.42%
12.48%
11.92%
10.77%
9.83%
35.39%
58.38%
84.52%
98.01%
63.00%
43.34%
34.59%
29.94%
27.58%
22.15%
18.50%
18.76%
15.69%
17.16%
16.25%
15.73%
13.57%
13.94%
9.36%
4.34%
2.37%
0.00%
$1.01
$1.04
$1.06
$1.14
$1.28
$1.40
$1.52
$1.70
$1.85
$2.08
$2.34
$2.55
$2.75
$3.13
$3.48
$3.90
$4.47
$5.06
$10.50
$29.36
$59.86
$108.82
Median
Growth
of $1
10/87-10/87
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
1/69-12/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
10/97-9/11
3/94-2/09
3/89-2/09
7/83-6/13
12/68-11/08
1/65-12/14
Lowest
Rolling
Period
Date
Growth
of $1 in
Lowest
Period
12
13
14
15
16
17
18
19
20
22
23
21
24
25
IP67
IP67
IP67
IP67
IP66
IP66
IP66
IP66
IP65
IP65
IP65
IP65
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.23%
3.51%
6.09%
13.70%
12.76%
11.51%
10.74%
10.91%
10.53%
10.64%
10.85%
10.64%
10.29%
10.62%
10.58%
10.69%
10.95%
11.09%
12.16%
11.58%
10.41%
9.46%
33.31%
54.10%
78.72%
91.36%
58.60%
40.87%
32.87%
28.37%
25.71%
20.88%
17.49%
17.72%
14.90%
16.28%
15.42%
14.90%
12.92%
13.23%
8.87%
4.14%
2.13%
0.00%
$1.01
$1.04
$1.06
$1.14
$1.27
$1.39
$1.50
$1.68
$1.82
$2.03
$2.28
$2.48
$2.66
$3.04
$3.34
$3.75
$4.28
$4.84
$9.93
$26.78
$52.50
$91.82
Median
Growth
of $1
Lowest
Rolling
Period
Date
10/87-10/87
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
1/69-12/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
10/97-9/11
3/94-2/09
3/89-2/09
7/83-6/13
12/68-11/08
1/65-12/14
Lowest
Rolling
Period
Return
-16.53%
-26.11%
-35.35%
-36.79%
-21.83%
-11.37%
-5.49%
-1.98%
-2.73%
0.95%
2.72%
2.88%
4.64%
3.69%
4.57%
5.25%
6.00%
5.73%
7.28%
9.57%
9.24%
9.46%
IP62
IP62
IP62
IP62
Highest
Rolling
Period
Date
1/75-1/75
3/09-5/09
3/09-8/09
3/09-2/10
3/09-2/11
8/84-7/87
7/82-6/86
8/82-7/87
1/75-12/80
8/82-7/89
1/75-12/82
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
1/75-12/14
1/65-12/14
IP63
IP63
IP63
IP63
Growth
of $1 in
Lowest
Period
$0.83
$0.74
$0.65
$0.63
$0.61
$0.70
$0.80
$0.90
$0.85
$1.07
$1.24
$1.29
$1.57
$1.49
$1.71
$1.94
$2.26
$2.31
$4.08
$15.51
$34.32
$91.82
IP64
IP64
IP64
IP64
IP60
IP60
IP60
IP60
Highest
Rolling
Period
Return
16.78%
27.99%
43.37%
54.57%
36.77%
29.49%
27.37%
26.39%
22.99%
21.83%
20.21%
20.60%
19.54%
19.97%
19.99%
20.15%
18.92%
18.96%
16.16%
13.71%
11.37%
9.46%
IP61
IP61
IP61
IP61
1981
Growth
of $1 in
Highest
Period
$1.17
$1.28
$1.43
$1.55
$1.87
$2.17
$2.63
$3.23
$3.46
$3.98
$4.36
$5.40
$5.96
$7.41
$8.91
$10.87
$11.32
$13.52
$19.99
$47.19
$74.31
$91.82
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
11
10
10
9
20
10
30
20
40
30
50
40
60
50
70
60
100
80
IP68
IP68
IP68
IP68
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
70
IP69
IP69
IP69
IP69
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
20
30
40
50
90
IP70
IP70
IP70
IP70
$1.18
$1.30
$1.47
$1.59
$1.94
$2.24
$2.71
$3.37
$3.67
$4.18
$4.60
$5.75
$6.33
$7.95
$9.62
$11.85
$12.35
$14.84
$22.12
$54.20
$87.91
$108.82
80
IP71
IP71
IP71
IP71
17.85%
30.19%
46.74%
58.74%
39.41%
30.79%
28.34%
27.48%
24.18%
22.67%
21.02%
21.46%
20.26%
20.73%
20.76%
20.95%
19.67%
19.70%
16.75%
14.23%
11.84%
9.83%
90
100
IP72
IP72
IP72
IP72
IP73
IP73
IP73
IP73
1/75-1/75
3/09-5/09
3/09-8/09
3/09-2/10
3/09-2/11
8/84-7/87
7/82-6/86
8/82-7/87
1/75-12/80
8/82-7/89
1/75-12/82
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
1/75-12/14
1/65-12/14
1981
IP74
IP74
IP74
IP74
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
IP65
IP65
IP65
IP65
Growth
of $1 in
Highest
Period
IP66
IP66
IP66
IP66
Highest
Rolling
Period
Return
IP67
IP67
IP67
IP67

Highest
Rolling
Period
Date
IP68
IP68
IP68
IP68
$0.82
-17.54%
$0.72
-28.19%
$0.62
-37.77%
$0.61
-39.27%
$0.58
-23.59%
$0.67
-12.55%
$0.77
-6.26%
$0.88
-2.46%
$0.81
-3.40%
$1.04
0.52%
2.52%
$1.22
$1.27
2.69%
4.58%
$1.56
3.58%
$1.47
$1.70
4.51%
$1.94
5.22%
6.10%
$2.29
$2.32
5.76%
$4.16
7.38%
9.90% $16.97
9.47% $37.36
9.83% $108.82
Lowest
Rolling
Period
Return
IP69
IP69
IP69
IP69
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
IP78
IP79

28
IP68
IP68
IP68
IP69
IP69
IP69
IP67
IP67
IP67
IP67
IP66
IP66
IP66
IP66
IP65
IP65
IP65
IP65
IP64
IP64
IP64
IP64
IP63
IP63
IP63
IP63
IP62
IP62
IP62
IP62
IP61
IP61
IP61
IP61
IP60
IP60
IP60
IP60
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.20%
3.38%
5.87%
13.16%
12.20%
11.12%
10.40%
10.60%
10.19%
10.31%
10.50%
10.32%
10.04%
10.32%
10.23%
10.36%
10.60%
10.68%
11.84%
11.23%
10.06%
9.08%
31.20%
49.91%
72.98%
84.78%
54.25%
38.41%
31.16%
26.83%
23.86%
19.62%
16.50%
16.69%
14.13%
15.41%
14.61%
14.08%
12.29%
12.52%
8.38%
3.95%
1.90%
0.00%
Lowest
Rolling
Median
Period
Growth
of $1
Date
$1.01 10/87-10/87
$1.03 9/08-11/08
9/08-2/09
$1.06
3/08-2/09
$1.13
3/07-2/09
$1.26
3/06-2/09
$1.37
3/05-2/09
$1.49
3/04-2/09
$1.65
$1.79 1/69-12/74
$1.99 1/68-12/74
3/01-2/09
$2.22
3/00-2/09
$2.42
3/99-2/09
$2.60
3/98-2/09
$2.95
3/97-2/09
$3.22
3/96-2/09
$3.60
$4.10 10/97-9/11
3/94-2/09
$4.58
3/89-2/09
$9.38
7/83-6/13
$24.37
$46.23 12/68-11/08
$77.09 1/65-12/14
Lowest
Rolling
Period
Return
-15.50%
-24.07%
-32.90%
-34.28%
-20.07%
-10.21%
-4.75%
-1.52%
-2.07%
1.36%
2.90%
3.05%
4.68%
3.80%
4.62%
5.26%
5.89%
5.70%
7.18%
9.23%
9.00%
9.08%
IP57
IP57
IP57
IP57
Highest
Rolling
Period
Date
1/75-1/75
3/09-5/09
3/09-8/09
3/09-2/10
3/09-2/11
8/84-7/87
7/82-6/86
8/82-7/87
1/75-12/80
8/82-7/89
1/75-12/82
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
1/75-12/14
1/65-12/14
IP58
IP58
IP58
IP58
Growth
of $1 in
Lowest
Period
$0.85
$0.76
$0.67
$0.66
$0.64
$0.72
$0.82
$0.93
$0.88
$1.10
$1.26
$1.31
$1.58
$1.51
$1.72
$1.95
$2.23
$2.30
$4.00
$14.14
$31.41
$77.09
IP59
IP59
IP59
IP59
IP55
IP55
IP55
IP55
Highest
Rolling
Period
Return
15.70%
25.84%
40.08%
50.50%
34.18%
28.20%
26.41%
25.31%
21.79%
20.99%
19.40%
19.74%
18.81%
19.21%
19.22%
19.34%
18.18%
18.22%
15.56%
13.18%
10.90%
9.08%
IP56
IP56
IP56
IP56
Growth
of $1 in
Highest
Period
$1.16
$1.26
$1.40
$1.51
$1.80
$2.11
$2.55
$3.09
$3.26
$3.79
$4.13
$5.06
$5.60
$6.91
$8.25
$9.95
$10.37
$12.31
$18.04
$41.01
$62.60
$77.09
1981
10
11
12
13
14
15
16
17
18
19
20
22
23
21
24
25
IP60
IP60
IP60
IP60
IP59
IP59
IP59
IP59
IP58
IP58
IP58
IP58
IP57
IP57
IP57
IP57
IP56
IP56
IP56
IP56
IP55
IP55
IP55
IP55
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.15%
3.22%
5.68%
12.61%
11.68%
10.67%
10.03%
10.19%
9.89%
10.00%
10.11%
9.99%
9.71%
9.95%
9.91%
10.04%
10.23%
10.34%
11.52%
10.86%
9.69%
8.69%
29.05%
45.90%
67.31%
78.96%
49.94%
35.98%
29.47%
25.31%
22.31%
18.48%
15.53%
15.67%
13.37%
14.56%
13.80%
13.27%
11.67%
11.82%
7.90%
3.75%
1.66%
0.00%
$1.01
$1.03
$1.06
$1.13
$1.25
$1.36
$1.47
$1.62
$1.76
$1.95
$2.16
$2.36
$2.53
$2.84
$3.11
$3.47
$3.91
$4.38
$8.85
$22.04
$40.40
$64.38
Median
Growth
of $1
Lowest
Rolling
Period
Date
10/87-10/87
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
1/69-12/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
10/97-9/11
3/94-2/09
3/89-2/09
7/83-6/13
12/68-11/08
1/65-12/14
Lowest
Rolling
Period
Return
-14.44%
-22.05%
-30.44%
-31.74%
-18.32%
-9.07%
-4.02%
-1.09%
-1.42%
1.76%
3.05%
3.20%
4.70%
3.88%
4.65%
5.25%
5.77%
5.65%
7.06%
8.89%
8.75%
8.69%
IP52
IP52
IP52
IP52
Highest
Rolling
Period
Date
1/75-1/75
1/75-3/75
3/09-8/09
7/82-6/83
3/09-2/11
8/84-7/87
7/82-6/86
8/82-7/87
10/81-9/87
4/80-3/87
1/75-12/82
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
1/75-12/14
1/65-12/14
IP53
IP53
IP53
IP53
Growth
of $1 in
Lowest
Period
$0.86
$0.78
$0.70
$0.68
$0.67
$0.75
$0.85
$0.95
$0.92
$1.13
$1.27
$1.33
$1.58
$1.52
$1.72
$1.95
$2.19
$2.28
$3.91
$12.86
$28.63
$64.38
IP54
IP54
IP54
IP54
IP50
IP50
IP50
IP50
Highest
Rolling
Period
Return
14.62%
23.86%
36.87%
47.22%
31.62%
26.91%
25.45%
24.23%
20.89%
20.24%
18.58%
18.88%
18.07%
18.44%
18.45%
18.52%
17.43%
17.47%
14.96%
12.64%
10.41%
8.69%
IP51
IP51
IP51
IP51
1981
Growth
of $1 in
Highest
Period
$1.15
$1.24
$1.37
$1.47
$1.73
$2.04
$2.48
$2.96
$3.12
$3.63
$3.91
$4.74
$5.27
$6.43
$7.63
$9.10
$9.48
$11.19
$16.26
$35.57
$52.55
$64.38
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
10
20
10
30
20
40
30
50
40
60
50
70
60
100
80
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
70
IP61
IP61
IP61
IP61
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
20
30
40
50
90
IP62
IP62
IP62
IP62
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
80
IP63
IP63
IP63
IP63
IP64
IP64
IP64
IP64

90
100
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
IP68
IP69

29
IP58
IP58
IP58
IP59
IP59
IP59
IP57
IP57
IP57
IP57
IP56
IP56
IP56
IP56
IP55
IP55
IP55
IP55
IP54
IP54
IP54
IP54
IP53
IP53
IP53
IP53
IP52
IP52
IP52
IP52
IP51
IP51
IP51
IP51
IP50
IP50
IP50
IP50
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.11%
3.03%
5.45%
12.07%
11.18%
10.28%
9.70%
9.86%
9.53%
9.65%
9.73%
9.65%
9.42%
9.64%
9.53%
9.70%
9.88%
9.97%
11.18%
10.48%
9.30%
8.28%
26.88%
42.16%
61.69%
74.00%
45.68%
33.57%
27.81%
23.82%
20.94%
17.44%
14.61%
14.67%
12.62%
13.71%
13.01%
12.46%
11.05%
11.13%
7.52%
3.59%
1.43%
0.00%
Lowest
Rolling
Median
Period
Growth
of $1
Date
$1.01 10/87-10/87
$1.03 9/08-11/08
9/08-2/09
$1.05
3/08-2/09
$1.12
3/07-2/09
$1.24
3/06-2/09
$1.34
3/05-2/09
$1.45
3/04-2/09
$1.60
$1.73 12/68-11/74
$1.91 1/68-12/74
3/01-2/09
$2.10
3/00-2/09
$2.29
3/99-2/09
$2.46
3/98-2/09
$2.75
3/97-2/09
$2.98
3/96-2/09
$3.33
$3.74 10/97-9/11
3/94-2/09
$4.16
2/94-1/14
$8.33
$19.87 1/85-12/14
$35.08 12/68-11/08
$53.49 1/65-12/14
Lowest
Rolling
Period
Return
-13.35%
-20.05%
-27.95%
-29.18%
-16.57%
-7.95%
-3.32%
-0.67%
-0.79%
2.15%
3.19%
3.34%
4.71%
3.95%
4.67%
5.24%
5.63%
5.59%
6.84%
8.51%
8.49%
8.28%
IP47
IP47
IP47
IP47
Highest
Rolling
Period
Date
1/75-1/75
1/75-3/75
3/09-8/09
7/82-6/83
3/09-2/11
8/84-7/87
7/82-6/86
8/82-7/87
10/81-9/87
4/80-3/87
10/81-9/89
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
1/75-12/14
1/65-12/14
IP48
IP48
IP48
IP48
Growth
of $1 in
Lowest
Period
$0.87
$0.80
$0.72
$0.71
$0.70
$0.78
$0.87
$0.97
$0.95
$1.16
$1.29
$1.34
$1.58
$1.53
$1.73
$1.94
$2.15
$2.26
$3.75
$11.58
$26.00
$53.49
IP49
IP49
IP49
IP49
IP45
IP45
IP45
IP45
Highest
Rolling
Period
Return
13.54%
22.11%
33.74%
44.82%
29.11%
25.62%
24.48%
23.15%
20.16%
19.59%
17.80%
18.01%
17.33%
17.67%
17.67%
17.70%
16.68%
16.72%
14.36%
12.10%
9.92%
8.28%
IP46
IP46
IP46
IP46
12
13
14
15
16
17
18
19
20
22
23
21
24
25
IP50
IP50
IP50
IP50
IP49
IP49
IP49
IP49
IP48
IP48
IP48
IP48
IP47
IP47
IP47
IP47
IP46
IP46
IP46
IP46
IP45
IP45
IP45
IP45
600
598
595
589
577
565
553
541
529
517
505
493
481
469
457
445
433
421
361
241
121
1
1.02%
2.88%
5.24%
11.62%
10.63%
9.93%
9.38%
9.52%
9.20%
9.30%
9.32%
9.30%
9.14%
9.29%
9.21%
9.35%
9.51%
9.68%
10.83%
10.10%
8.91%
7.87%
24.68%
38.43%
56.13%
69.04%
41.73%
31.18%
26.16%
22.35%
19.63%
16.42%
13.89%
13.68%
11.89%
12.88%
12.22%
11.67%
10.45%
10.44%
7.23%
3.46%
1.21%
0.00%
$1.01
$1.03
$1.05
$1.12
$1.22
$1.33
$1.43
$1.58
$1.70
$1.86
$2.04
$2.23
$2.40
$2.66
$2.88
$3.20
$3.57
$4.00
$7.81
$17.93
$30.40
$44.20
Median
Growth
of $1
Lowest
Rolling
Period
Date
10/87-10/87
9/08-11/08
9/08-2/09
3/08-2/09
3/07-2/09
3/06-2/09
3/05-2/09
3/04-2/09
12/68-11/74
1/68-12/74
3/01-2/09
3/00-2/09
3/99-2/09
3/98-2/09
3/97-2/09
3/96-2/09
10/97-9/11
3/94-2/09
2/94-1/14
1/85-12/14
12/68-11/08
1/65-12/14
Lowest
Rolling
Period
Return
-12.22%
-18.08%
-25.45%
-26.59%
-14.83%
-6.84%
-2.64%
-0.28%
-0.21%
2.52%
3.31%
3.46%
4.70%
4.01%
4.67%
5.21%
5.47%
5.52%
6.51%
8.10%
8.21%
7.87%
IP42
IP42
IP42
IP42
Highest
Rolling
Period
Date
1/75-1/75
1/75-3/75
3/09-8/09
7/82-6/83
7/84-6/86
8/84-7/87
7/82-6/86
8/82-7/87
10/81-9/87
4/80-3/87
4/80-3/88
1/75-12/83
9/77-8/87
1/75-12/85
1/75-12/86
10/74-9/87
1/75-12/88
10/74-9/89
10/74-9/94
1/75-12/04
10/74-9/14
1/65-12/14
IP43
IP43
IP43
IP43
Growth
of $1 in
Lowest
Period
$0.88
$0.82
$0.75
$0.73
$0.73
$0.81
$0.90
$0.99
$0.99
$1.19
$1.30
$1.36
$1.58
$1.54
$1.73
$1.93
$2.11
$2.24
$3.53
$10.34
$23.52
$44.20
IP44
IP44
IP44
IP44
IP40
IP40
IP40
IP40
Highest
Rolling
Period
Return
12.46%
20.35%
30.68%
42.45%
26.91%
24.33%
23.52%
22.07%
19.42%
18.94%
17.19%
17.14%
16.59%
16.89%
16.89%
16.87%
15.93%
15.96%
13.74%
11.55%
9.42%
7.87%
IP41
IP41
IP41
IP41
Growth
of $1 in
Highest
Period
$1.12
$1.20
$1.31
$1.42
$1.61
$1.92
$2.33
$2.71
$2.90
$3.37
$3.56
$4.15
$4.64
$5.57
$6.51
$7.59
$7.92
$9.22
$13.14
$26.58
$36.67
$44.20
10
11
12
13
14
15
16
17
18
19
20
1981
21
22
23
24
25
11
10
10
20
10
30
20
40
30
50
40
60
50
70
60
100
80
1
3
6
12
24
36
48
60
72
84
96
108
120
132
144
156
168
180
240
360
480
600
70
IP51
IP51
IP51
IP51
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
20
30
40
50
90
IP52
IP52
IP52
IP52
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
80
IP53
IP53
IP53
IP53
IP54
IP54
IP54
IP54

90
100
1981
Growth
of $1 in
Highest
Period
$1.14
$1.22
$1.34
$1.45
$1.67
$1.98
$2.40
$2.83
$3.01
$3.50
$3.71
$4.44
$4.95
$5.99
$7.05
$8.32
$8.67
$10.16
$14.63
$30.78
$43.96
$53.49
0.08
0.25
0.5
1
2
3
4
5
6
7
8
9
10 1
11
12
13
14
15
20
30
40
50
Return
Median
Per Period
# of
Range
Ann'lzd
(High
Number of:
Rolling Return
IP58
IP59

Disclosures
Disclosure for Backtested Performance Information, the IFA Indexes,
and IFA Index Portfolios (updates can be found at www.ifabt.com):
should not be interpreted as an indication of such performance. Actual

performance for client accounts may be materially lower than that of the
index portfolios. Backtested performance results have certain inherent
limitations. Such results do not represent the impact that material economic
and market factors might have on an investment advisers decision-making
process if the adviser were actually managing client money. Backtested
performance also differs from actual performance because it is achieved
through the retroactive application of model portfolios (in this case, IFAs
Index Portfolios) designed with the benefit of hindsight. As a result, the
models theoretically may be changed from time to time and the effect on
performance results could be either favorable or unfavorable.
1. Index Fund Advisors, Inc. (IFA) is an SEC registered Investment Adviser.

Information pertaining to IFAs advisory operations, services, and fees is
set forth in IFAs current Form ADV Part 2 (Brochure), a copy of which is
available upon request and at www.adviserinfo.sec.gov. The performance
information presented in certain charts or tables represent backtested
performance based on combined simulated index data and live (or actual)
mutual fund results from January 1, 1928 to the period ending date shown,
using the strategy of buy and hold and on the first of each year annually
rebalancing the globally diversified portfolios of index funds. Backtested
performance is hypothetical (it does not reflect trading in actual accounts)
and is provided for informational purposes only to indicate historical
performance had the index portfolios been available over the relevant time
period. IFA refers to this hypothetical data as a Simulated Passive Investor
Experience (SPIE). IFA did not offer the index portfolios until November
1999. Prior to 1999, IFA did not manage client assets. The IFA indexing
investment strategy is based on principles generally known as Modern
Portfolio Theory and the Fama and French Three Factor Model for Equities
and Two Factor Model for Fixed Income. Index portfolios are designed
to provide substantial global diversification in order to reduce investment
concentration and the resulting potential increased risk caused by the
volatility of individual companies, indexes, or asset classes.
4. History of Changes to the IFA Indexes: 1991-2000: IFA Index Portfolios

10, 30, 50, 70 and 90 were originally suggested by Dimensional Fund
Advisors (ifa.com/pdf/balancedstrategies.pdf), merely as an example of
globally diversified investments using their custom index mutual funds,
back in 1991 with moderate modifications in 1996 to reflect the availability
of index funds that tracked the emerging markets asset class. Index
Portfolios between each of the above listed portfolios were created by IFA
in 2000 by interpolating between the above portfolios. Portfolios 5, 95 and
100 were created by Index Fund Advisors in 2000, as a lower and higher
extension of the DFA 1991 risk and return line. As of March 1, 2010, 100
IFA Index Portfolios are available to IFA clients, with IFA Index Portfolios
between the shown allocations being interpolations of the 20 allocations
shown. In January 2008, IFA introduced three new indexes and eighteen
socially responsible portfolios constructed from these three indexes and
five pre-existing IFA indexes. The new indexes introduced were: IFA
US Social Core 2 Equity, IFA Emerging Markets Social Core, and IFA
International Real Estate. All three use live DFA fund data as long as it has
been available. Prior to live fund data, they use index data supplied by DFA
modified for fund management fees. In April 2008, IFA introduced two new
indexes and eighteen sustainability portfolios constructed from these two
indexes and five pre-existing indexes. The new indexes introduced were:
IFA US Sustainability Core 1 Equity and IFA International Sustainability
Core Equity. In November 2011, IFA made a change to the index data
used in its large growth and small growth indexes. Fama/French data
was replaced with data supplied by Dimensional Fund Advisors via its
Returns 2.2 program. For large growth, the difference in annualized return
was about 1% (a decrease). For small growth, the difference was about
0.2%. In November 2012, IFA changed the allocations and the historical
returns for its socially responsible portfolios to reflect the introduction of
the DFA International Social Core Equity Portfolio (DSCLX). Prior to this,
the international developed equity asset class was unavailable in a socially
responsible implementation. Although clients who were invested in the
old allocation from the time it became available (January 2008) likely did
better than they would have done with the new allocation, the difference is
not statistically significant, and it is IFAs advice that going forward having
an exposure to international developed equities will provide a substantial
diversification benefit to socially responsible investors. As of September
2013, all new clients will be placed into the NEW IFA Index Portfolios,
and all existing clients will be given the option to transition to the new
portfolios. Index Portfolio 100 was held the same as it has been since
2000 and became the only 100 percent equity portfolio in the NEW Index
Portfolios. The four fixed income indexes (25% each) remain the same as
they have been since 2000 and will make up the fixed income allocation of
all IFA index portfolios in the allocation equal to 100-New IP#. Go to www.
ifa.com/btp/historyofchange.html to see a summary of changes made to
the IFA Indexes and Index Portfolios.
2. A review of the IFA Index Data Sources (ifaindexes.com), IFA

Indexes Time Series Construction (http://www.ifa.com/disclosures/
charts/#timeseries) and several of the Dimensional Indexes (http://www.
ifa.com/disclosures/charts/#dfafunds) is an integral part of this disclosure
and should be read in conjunction with this explanation of backtested
performance information presented. IFA defines index funds as mutual
funds that follow a set of rules of ownership that are held constant
regardless of market conditions. An important characteristic of an index
fund is that its rules of ownership are not based on a forecast of short-term
events. Therefore, an investment strategy that is limited to the buying and
rebalancing of a portfolio of index funds is often referred to as passive
investing, as opposed to active investing. Simulated index data is based
on the performance of indexes and live mutual funds as described in the
IFA Indexes Data Sources page. The index mutual funds used in IFAs
Index Portfolios are IFAs best estimate of a mutual fund that will come
closest to the index data provided in the simulated indexes. Simulated
index data is used for the period prior to the inception of the relevant live
mutual fund data and an equivalent mutual fund expense ratio is deducted
from simulated index data. Live (or actual) mutual fund performance is
used after the inception date of each mutual fund. The IFA Indexes Times
Series Construction goes back to January 1928 and consistently reflects
a tilt towards small cap and value equities over time, with an increasing
diversification to international markets, emerging markets and real estate
investment trusts as data became available. As of January 1928, there are
4 equity indexes and 2 bond indexes; in January 1970 there are a total
of 8 indexes, and there are 15 indexes in March 1998 to present. See
(http://www.ifa.com/disclosures/charts/#IFA_evolution) to see the analysis
of the evolution of these portfolios. This names the indexes used in the
IFA Portfolios for each period, and shows the Time Series Construction of
the IFA indexes. If the original 4 equity indexes from 1928 (IFA US Large
Company Index; IFA US Large Cap Value Index; IFA US Small Cap Index;
IFA US Small Cap Value Index) are held constant until December 2012, the
annualized rate of return of this simplified version of IFA Index Portfolio 100
is 10.67%, after the deduction of a 0.9% IFA advisory fee and a standard
deviation of 23.59%. The evolving IFA Indexes over the same period have
a 10.99% annualized return for IFA Index Portfolio 100 after the same IFA
advisory fees and a standard deviation of 22.66%. The stitching together
of index and live fund data and adding international markets, emerging
markets and REITs only had a slight impact on risk and return over this
85 year period. Instead, it demonstrates the value of a small cap and
value tilt in global equity markets, since over the same period a Simulated
S&P 500 Index only had a return of 9.53% (with no fees deducted), at a
standard deviation of 19.19%. Backtested performance is calculated by
using a computer program and monthly returns data set that start with the
first day of the given time period and evaluates the returns of simulated
indexes and DFA index mutual funds. In 1999, tax-managed funds became
available for many different DFA index funds.
5. Backtested performance results assume the reinvestment of dividends

and capital gains and annual rebalancing at the beginning of each year.
It is important to understand that the assumption of annual rebalancing
has an impact on the monthly returns reported for the IFA Index Portfolio
in both the Risk and Reward Table (www.ifabigtable.com) and the Index
Calculator (www.ifacalc.com). For monthly rebalancing, the monthly return
is calculated with the assumption that the portfolio is perfectly in balance
at the beginning of each month. For annual rebalancing, the year-to-date
return is calculated with the assumption that the portfolio is perfectly in
balance at the beginning of the year. The latter assumption underlies the
returns shown for the IFA Index Portfolios. In actual portfolios, however,
rebalancing occurs at no set time, and such actions are dependent on both
market conditions and individual client liquidity inflows and outflows, along
with the cost impact of such transactions on the overall portfolio. Therefore
actual monthly and year-to-date returns will differ from the IFA Returns
3. Backtested performance does not represent actual performance and
or accuracy of this information. Neither our information providers nor we

shall be liable for any errors or inaccuracies, regardless of cause, or the
lack of timeliness of, or for any delay or interruption in the transmission
thereof to the user. All investments involve risk, including foreign currency
exchange rates, political risks, market risk, different methods of accounting
and financial reporting, and foreign taxes. Your use of these materials,
including www.ifa.com website is your acknowledgement that you have
read and understood the full disclaimer as stated above. IFA Index
Portfolios, times series, standard deviations, and returns calculations are
determined in the Dimensional Returns 2.0 program. Copyright 19992014, DFA, Inc.
Calculator. The reason for this difference is that with annual rebalancing,
the monthly returns are calculated from the ratio of the year-to-date growth
of $1.00 at the end of the month to the year-to-date growth of $1.00 at the
beginning of the month. For monthly rebalancing, the monthly return is
calculated with the assumption that the portfolio is perfectly in balance at
the beginning of the month. The performance of the IFA Index Portfolios
reflects and is net of the effect of IFAs annual investment management fee
of 0.9%, billed monthly, unless stated otherwise. Monthly fee deduction is
a requirement of our software used for backtesting. Actual IFA advisory
fees are deducted quarterly, in advance. This fee is the highest fee IFA
charges. Depending on the amount of your assets under management,
your investment management fee may be less. Backtested risk and return
data is a combination of live (or actual) mutual fund results and simulated
index data, and mutual fund fees and expenses have been deducted
from both the live (or actual) results and the simulated index data. When
IFA Indexes are shown in IFA Index Portfolios, all returns data reflects a
deduction of 0.9% annual investment advisory fee, which is the maximum
IFA fee. Unless indicated otherwise, data shown for each individual IFA
Index is shown without a deduction of the IFA advisory fee. We choose
this method because the creation, choice, monitoring and rebalancing of
diversified index portfolios are the services of the independent investment
advisor and at that point the fees are appropriate to deduct from the whole
portfolio returns. Since we accept no fees from investment product firms,
IFA compares index funds based on net asset value returns, which are
net of the mutual fund company expense ratios only. Although index
mutual funds minimize tax liabilities from short and long-term capital
gains, any resulting tax liability is not deducted from performance results.
Performance results also do not reflect transaction fees (as seen at www.
ifafee.com) and other expenses, which reduce returns.
13. IFA licenses the use of data, in part, from Morningstar Direct, a thirdparty provider of stock market data. Where data is cited from Morningstar
Direct, the following disclosures apply: 2014 Morningstar, Inc. All rights
reserved. The information provided by Morningstar Direct and contained
herein: (1) is proprietary to Morningstar and/or its content providers; (2)
may not be copied or distributed; and (3) is not warranted to be accurate,
complete or timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this
information.
Updated 10-15-2014. For additional updates see www.ifabt.com.
14. Effective July 1, 2013, Index Funds Advisors, Inc., a California
Corporation, is now Index Fund Advisors, Inc. a Delaware corporation.
Other Information IFA Considers to be Helpful
It is IFAs advice that the value of having a longer time series exceeds
the concerns of index substitutions over the 1928 to present period. Due
to the very high standard deviations of returns (21.99%) a 40 year or
more sample size of data is recommended to obtain a T-statistic of 2, that
allows a conclusion at a 95% or higher level of certainty. In other words, in
IFAs opinion, smaller sample sizes introduce larger errors than the errors
introduced by stitching together indexes and live data over time. This is the
advice IFA provides to its clients.
6. For all data periods, annualized standard deviation is presented as

an approximation by multiplying the monthly standard deviation number
by the square root of 12. Please note that the number computed from
annual data may differ materially from this estimate. We have chosen
this methodology because Morningstar uses the same method. Go to
www.ifabt.com for details. In those charts and tables where the standard
deviation of daily returns is shown, it is estimated as the standard deviation
of monthly returns divided by the square root of 22.
Client portfolios are monitored and rebalanced, taking into consideration

risk exposure consistency, transaction costs, and tax ramifications to
maintain target asset allocations as shown in the Index Portfolios.
7. The tax-managed index funds are not used in calculating the backtested
performance of the index portfolios, unless specified in the table or chart.
IFA uses tax-managed funds in taxable accounts. The tax-managed funds

are consistent with the indexing strategy, however, they should not be
expected to track the performance of corresponding non-tax-managed
funds in the same or similar indexes. As such, the performance of portfolios
using tax-managed funds will vary from portfolios that do not utilize these
funds.
8. Performance results for clients that invested in accordance with the IFA
Index Portfolios will vary from the backtested performance due to market
conditions and other factors, including investments cash flows, mutual
fund allocations, frequency and precision of rebalancing, tax-management
strategies, cash balances, lower than 0.9% advisory fees, varying
custodian fees, and/or the timing of fee deductions. As the result of these
and potentially other variances, actual performance for client accounts may
differ materially from (and may be lower than) that of the index portfolios.
Clients should consult their account statements for information about how
their actual performance compares to that of the index portfolios.
Clients accounts will be rebalanced depending on the fluctuation of the

asset classes and the cash flow activity of the client. It is IFAs opinion
that the assumption of first of the year annual rebalancing is a reasonable
approximation to reality.
9. As with any investment strategy, there is potential for profit as well as the
possibility of loss. IFA does not guarantee any minimum level of investment
performance or the success of any index portfolio or investment strategy.
All investments involve risk and investment recommendations will not
always be profitable.
IFA is not paid any brokerage commissions, sales loads, 12b1 fees, or any
form of compensation from any mutual fund company or broker dealer. The
only source of compensation from client investments is obtained from asset
based advisory fees paid by the client. More information about advisory
fees, expenses, no-load mutual fund fees, prospectuses for no-load index
mutual funds, brokerage and custodian fees can be found at www.ifa.
com/admin/fees.asp. Not all IFA clients follow our recommendations, and
depending on unique and changing client and market situations, we may
customize the construction and implementation of the index portfolios for
particular clients, including the use of tax-managed mutual funds, tax-lossharvesting techniques and rebalancing frequency and precision. In taxable
accounts, IFA uses tax-managed index funds to manage client assets.
10. Past performance does not guarantee future results.

11. IFA Index Portfolio Value Data is based on a starting value of one, as
of January 1, 1928.
12. DISCLAIMER: THERE ARE NO WARRANTIES, EXPRESSED
OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS
OBTAINED FROM ANY INFORMATION PROVIDED HEREIN OR ON
THE MATERIAL PROVIDED. This document does not constitute a
complete description of our investment services and is for informational
purposes only. It is in no way a solicitation or an offer to sell securities or
investment advisory services. Any statements regarding market or other
financial information is obtained from sources which we and our suppliers
believe to be reliable, but we do not warrant or guarantee the timeliness
ii
Sources and Description of Data
Sources and Description of Data: The following descriptions of IFA

Indexes indicate how indexes are strung together to simulate similar risk
and return characteristics back to 1928. This long-term data reduces the
possible errors of interpreting a short-term return as being representative
of other short-term returns. Such errors are especially high for periods
of 20 years or less. When IFA Indexes are shown in Index Portfolios, all
return data reflects a deduction of 0.9% annual investment advisory fee,
which is the maximum advisory fee charged by IFA. Unless indicated
otherwise, data shown for each individual IFA Index is shown without
a deduction of the IFA advisory fee. This method is used because the
Time-Series
Construction
creation, choice, monitoring and rebalancing of diversified index portfolios

are the services of the independent investment advisor. Therefore, fees are
deducted from the whole portfolio data but not the individual index data.
Live Dimensional Fund Advisors (DFA) fund data reflects the deduction
of mutual fund advisory fees, brokerage fees, other expenses incurred by
the mutual funds, incorporates actual trading results, and is sourced from
DFA. Simulated index data also reflects DFAs current mutual fund expense
ratios for the entire period. Both simulated and live data reflect total returns,
including dividends, except for IFA/NSDQ Index. For updates on sources
and descriptions of data see www.ifaindexes.com.
January 1928 December 1990: Dimensional US Large Cap Index minus 0.0083%/mo (mutual fund exp ratio)
January 1991 April 2010: DFA US Large Company Symbol: DFLCX
May 2010 Present : DFA US Large Company Portfolio Symbol: DFUSX
Investment Objective of DFA US Large Company Portfolio (DFUSX) The US Large Company Portfolio is a no-load mutual fund designed to approximate the total investment return of the S&P 500 Index. The
portfolio generally invests in the stocks that comprise the S&P 500 Index in approximately the proportions as they are represented in the S&P 500 Index. The S&P 500 Index is comprised of a broad and diverse
group of stocks. Generally, these are the US stocks with the largest market capitalizations and, as a group, they represent approximately 75% of the total market capitalization of all publicly traded US stocks. In seeking
to approximate the total investment return of the S&P 500 Index, Dimensional may also adjust the representation of securities in the US Large Company Portfolio after considering such securities' characteristics and
other factors Dimensional determines to be appropriate.
Average Annual Total Return
DFA US Large Company Portfolio
S&P 500 Index
One Year
13.53%
13.69%
Three Years
20.28%
20.41%
Five Years
15.36%
15.45%
Number of Holdings 503
Ten Years
7.69%
7.67%
Weighted Average Market Cap $132,247M

Aggregated Price-to-Book 2.44
Turnover Ratio (as of 10/31/12) 3.00%

Wtd. Avg Dividend-to-Price 2.04%
Expense Ratio (as of 10/31/14) 0.08%
Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.
Time-Series
Construction
January 1928 February 1993: Dimensional US Large Cap Value Index minus 0.0233%/mo (mutual fund exp ratio)
March 1993 Present: DFA US Large Cap Value Portfolio Symbol: DFLVX
Investment Objective of DFA US Large Cap Value Portfolio I (DFLVX) The US Large Cap Value Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The Portfolio is a feeder
portfolio and pursues its objective by investing substantially all of its assets in its corresponding Master Fund, The US Large Cap Value Series. The Master Fund, using a market capitalization weighted approach,
purchases a broad and diverse group of readily marketable securities of large US companies Dimensional determines to be value stocks at the time of purchase. The portfolio invests in securities of US companies with
market capitalizations within the largest 90% of the market universe or larger than the 1,000th largest US company, whichever results in a higher market capitalization break. Dimensional may modify market
capitalization weights and even exclude companies after considering such factors as free float, momentum, trading strategies, liquidity management, and expected profitability. In assessing expected profitability,
Dimensional may consider different ratios, such as that of earnings or profits from operations relative to book value or assets. The market universe is comprised of companies listed on the New York Stock Exchange,
NYSE MKT LLC, Nasdaq Global Market or such other securities exchanges deemed appropriate by Dimensional. Securities are considered value stocks primarily because a company's shares have a high book value
in relation to their market value (BtM).
DFA US Large Cap Value Portfolio (I)
Russell 1000 Value Index
One Year
10.07%
13.45%
Three Years
23.53%
20.89%
Five Years
17.02%
15.42%
Ten Years
8.10%
7.30%


Time-Series
Construction
IFA U.S. Small Cap Index (SC)
January 1928 March 1992: Dimensional US Small Cap Index minus 0.0308%/mo (mutual fund exp ratio)
April 1992 Present : DFA US Small Cap Portfolio Symbol: DFSTX
Investment Objective of DFA US Small Cap Portfolio I (DFSTX) TThe US Small Cap Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio seeks to purchase a broad and
diverse group of readily marketable securities of US small cap companies using a market cap weighted approach. The portfolio invests in securities of US companies with market capitalizations within the smallest 10%
of the market universe or smaller than the 1,000th largest US company, whichever results in a higher market capitalization break. Dimensional may modify market capitalization weights and even exclude companies
after considering such factors as free float, momentum, trading strategies, liquidity management, and expected profitability. In assessing expected profitability, Dimensional may consider different ratios, such as that of
earnings or profits from operations relative to book value or assets. The market universe is comprised of US-operating companies listed on the New York Stock Exchange, NYSE MKT LLC, Nasdaq Global Market or
such other securities exchanges deemed appropriate by Dimensional.
DFA US Small Cap Portfolio (I)
Russell 2000 Index
One Year
4.44%
4.89%
Three Years
20.70%
19.21%
Five Years
17.35%
15.55%
Number of Holdings 2,092
Ten Years
8.82%
7.77%


Time-Series
Construction
IFA U.S. Micro Cap Index (MC)
Jan 1928 - Dec 1981: Dimensional US Micro Cap Index minus 0.0433%/mo (mutual fund exp ratio)
Jan 1982 - Present: DFA US Micro Cap Portfolio: DFSCX
Investment Objective of DFA US Micro Cap Portfolio I (DFSCX) The US Micro Cap Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio seeks to purchase a broad and
diverse group of the securities of US micro cap companies using a market capitalization weighted approach. The portfolio invests in securities of US companies with market capitalizations within the smallest 5% of the
market universe or smaller than the 1,500th largest US company, whichever results in a higher market capitalization break. Dimensional may modify market capitalization weights and even exclude companies after
considering such factors as free float, momentum, trading strategies, liquidity management, and expected profitability. In assessing expected profitability, Dimensional may consider different ratios, such as that of
earnings or profits from operations relative to book value or assets. The market universe is comprised primarily of US operating companies listed on the New York Stock Exchange, NYSE MKT LLC, Nasdaq Global
Market or such other securities exchanges deemed appropriate by Dimensional.
DFA US Micro Cap Portfolio
Russell 2000 Index
One Year
2.92%
4.89%
Three Years
20.16%
19.21%
Five Years
17.53%
15.55%
Ten Years
7.77%
7.77%


Time-Series
Construction
January 1928 Febuary 2000: Dimensional US Targeted Value Index minus 0.0317%/mo (mutual fund exp ratio)
March 2000 Present: DFA US Targeted Value Portfolio Symbol: DFFVX
Investment Objective of DFA Targeted Value Portfolio I (DFFVX) The US Targeted Value Portfolio is designed to achieve long-term capital appreciation. The portfolio uses a market capitalization weighted approach
and generally purchases a broad and diverse group of readily marketable securities of US small and mid cap companies that Dimensional believes to be value stocks at the time of purchase. As of the date of the
prospectus, Dimensional considers for investment companies whose market capitalizations are generally smaller than the 500th largest US company in the market universe. Securities are considered value stocks
primarily because a company's shares have a high book value in relation to their market value. Dimensional may modify market capitalization weights and even exclude companies after considering such factors as free
float, momentum, trading strategies, liquidity management, and expected profitability. In assessing expected profitability, Dimensional may consider different ratios, such as that of earnings or profits from operations
relative to book value or assets. The market universe is comprised of US operating companies listed on the New York Stock Exchange, NYSE MKT LLC, Nasdaq Global Market or such other securities exchanges
deemed appropriate by Dimensional.
DFA US Targeted Value Portfolio (I)
Russell 2000 Value Index
One Year
2.94%
4.22%
Three Years
20.62%
18.29%
Five Years
16.23%
14.26%
Ten Years
8.32%
6.89%


IFA Global REIT Index (RE)
Time-Series
Construction
January 1928 December 1977: 50% IFA US Small Cap Index and 50% IFA Small Cap Value Index
January 1978 December 1993: Dow Jones US Select REIT Index minus 0.0183%/mo (mutual fund exp ratio)
Febuary 1993 June 2008: DFA US Real Estate Securities Symbol: DFREX
July 2008 Present: DFA Global Real Estate Securities Portfolio Symbol: DFGEX
Investment Objective of DFA Global Real Estate Securities Portfolio (DFGEX) The Global Real Estate Securities Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio
seeks to achieve exposure to a broad range of securities of US and non-US companies in the real estate industry with a focus on real estate investment trusts or companies that Dimensional considers to be REIT-like
entities by primarily purchasing shares of the underlying funds. The portfolio primarily purchases shares of Dimensional's Real Estate Securities portfolio and International Real Estate Securities portfolio. In addition to
investing in these underlying funds, the portfolio also may invest directly in securities of companies in the real estate industry that are eligible investments for the underlying funds. The portfolio invests in securities
associated with a diverse group of developed and emerging market countries that Dimensional has designated as approved markets. Dimensional may modify market capitalization weights and even exclude companies
after considering such factors as free float, momentum, trading strategies, liquidity management, and expected profitability, as well as other factors that the Advisor determines to be appropriate, given market
conditions. In assessing expected profitability, the Advisor may consider different ratios, such as that of earnings or profits from operations relative to book value or assets. Dimensional also may limit or fix the portfolios
exposure to a particular country or issuer.
Turnover Ratio (as of 10/31/12) NA

*Inception Date 6/4/08 **Net Dividends Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.

DFA Global Real Estate Sec. Portfolio
S&P Global REIT Index**
One Year
22.74%
21.54%
Three Years
15.45%
14.81%
Five Years
14.16%
13.20%
Inception*
5.80%
4.53%

iii
Time-Series
Construction
January 1928 December 1969: IFA US Large Value Index

January 1970 December 1974: MSCI EAFE Gross Dividends minus 0.0375%/mo (mutual fund exp ratio)
January 1975 June 1993: MSCI EAFE Value Gross minus 0.0375%/mo (mutual fund exp ratio)
July 1993 February 1994: LWAS/DFA International High BtM Portfolio
March 1994 Present: DFA International Value Portfolio Symbol: DFIVX
Investment Objective of DFA International Value Portfolio I (DFIVX) The International Value Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio pursues its objective
by investing substantially all of its assets in its corresponding Master Fund, The International Value Series. The Master Fund purchases securities of large non-US companies that Dimensional believes to be value
stocks at the time of purchase. Securities are considered value stocks primarily because a company's shares have a high book value in relation to their market value (BtM). Dimensional may modify market capitalization
weights and even exclude companies after considering such factors as free float, momentum, trading strategies, liquidity management, and expected profitability. In assessing expected profitability, Dimensional may
consider different ratios, such as that of earnings or profits from operations relative to book value or assets. The Master Fund intends to purchase securities associated with developed market countries that Dimensional
has designated as approved markets.
DFA Intl. Value Index Portfolio
MSCI EAFE Index*
One Year
-6.99%
-4.32%
Three Years
10.12%
10.47%
Five Years
4.19%
5.21%
Ten Years
4.59%
4.64%


*Net Dividends Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.
Time-Series
Construction
January 1928 December 1969: IFA US Small Cap Index

January 1970 September 1996: Dimensional International Small Cap Index minus 0.0458%/mo (mutual fund exp ratio)
October 1996 Present: DFA International Small Company Portfolio Symbol: DFISX
Investment Objective of DFA International Small Company Portfolio I (DFISX) The International Small Company Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. As of the date
of the prospectus, as a fund of funds, the portfolio pursues its objective by investing substantially all of its assets in the Canadian Small Company Series (0-20%), Japanese Small Company Series (10-35%), Asia
Pacific Small Company Series (0-25%), United Kingdom Small Company Series (10-30%) and Continental Small Company Series (25-50%), although it has the ability to invest directly in securities and derivatives.
From time to time, the Advisor may add or remove Underlying Funds in the International Small Company portfolio without notice to shareholders. These Underlying Funds invest in small companies using a market cap
weighted approach in each country or region designated by Dimensional as an approved market for investment. Dimensional may modify market capitalization weights and even exclude companies after considering
such factors as free float, momentum, trading strategies, liquidity management, and expected profitability. In assessing expected profitability, Dimensional may consider different ratios, such as that of earnings or profits
from operations relative to book value or assets.
DFA Intl. Small Cap Index
MSCI World ex USA Small Cap Index*
One Year
-6.30%
-7.32%
Three Years
12.38%
9.22%
Five Years
8.28%
5.49%
Ten Years
6.68%
3.63%


Wtd. Avg Dividend-to-Price 2.75
*Price-Only Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.
Time-Series
Construction
January 1928 December 1969: IFA Small Cap Value Index

January 1970 June 1981: IFA International Small Company Index
July 1981 December 1994: Dimensional International Small Cap Value Index minus 0.0575%/mo (mutual fund exp ratio)
January 1995 Present: DFA International Small Cap Value Portfolio Symbol: DISVX
Investment Objective of DFA International Small Cap Value Portfolio I (DISVX) The International Small Cap Value Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio
pursues its objective, using a market capitalization weighted approach, to purchase securities of small, non-U.S. companies in countries with developed markets that Dimensional determines to be value stocks at the
time of purchase. In general, the higher the relative market capitalization of a small company within an eligible country, the greater its representation in the portfolio. Dimensional may modify market capitalization
weights and even exclude companies after considering such factors as free float, momentum, trading strategies, liquidity management, and expected profitability. Securities are considered value stocks primarily
because a companys shares have a high book value in relation to their market value (book to market ratio). In assessing expected profitability, Dimensional may consider different ratios, such as that of earnings or
profits from operations relative to book value or assets.
DFA Intl. Small Cap Value
MSCI EAFE Small Cap Index*
One Year
-4.99%
-7.32%
Three Years
15.42%
9.22%
Five Years
8.43%
5.49%
Ten Years
7.10%
3.63%


*Price-Only Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.
Time-Series
Construction
IFA Emerging Market Index (EM)
January 1928 December 1969: 50% IFA US Large Value Index and 50% IFA US Small Cap Index
January 1970 December 1987: 50% IFA Int'l Value and 50% IFA Int'l Small Cap
January 1988 December 1988: MSCI Emerging Markets Index (gross div.) minus 0.05%/mo (mutual fund exp ratio)
January 1989 April 1994: Fama/French Emerging Markets Index minus 0.05%/mo (mutual fund exp ratio)
May 1994 Present: DFA Emerging Markets Portfolio Symbol: DFEMX
Investment Objective of DFA Emerging Markets Portfolio I (DFEMX) The Emerging Markets Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio pursues its objective
by investing substantially all of its assets in its corresponding Master Fund, The Emerging Markets Series. The Master Fund purchases a broad market coverage of larger companies associated with emerging markets,
which may include frontier markets, that Dimensional has designated as approved markets. Dimensional may adjust the representation in the Master Fund of an eligible company, or exclude a company, after
considering expected profitability relative to other eligible companies. In assessing expected profitability, Dimensional may consider different ratios, such as that of earnings or profits from operations relative to book
value or assets.
DFA Emerging Markets Portfolio I
MSCI Emerging Markets Index*
One Year
-1.71%
-1.82%
Three Years
4.30%
4.41%
Five Years
2.68%
2.11%
Ten Years
8.55%
8.78%


Wtd. Avg Dividend-to-Price 2.38
*Gross Dividend Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.
Time-Series
Construction
January 1928 December 1969: IFA US Small Cap Value Index

January 1970 December 1988: IFA Emerging Markets Index
January 1989 April 1998: Dimensional Emerging Value Index minus 0.05%/mo (mutual fund exp ratio)
May 1998 Present: DFA Emerging Markets Value Portfolio Symbol DFEVX
Investment Objective of DFA Emerging Markets Value Portfolio I (DFEVX) The Emerging Markets Value Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio pursues
its objective by investing substantially all of its assets in its corresponding Master Fund, The Dimensional Emerging Markets Value Fund. The Master Fund purchases emerging markets equity securities that
Dimensional deems to be value stocks at the time of purchase. Securities are considered value stocks primarily because a company's shares have a high book value in relation to their market value (BtM). The Master
Fund invests in securities associated with emerging markets, which may include frontier markets, that Dimensional has designated as approved markets. Dimensional may adjust the representation in the Master Fund
of an eligible company, or exclude a company, after considering expected profitability relative to other eligible companies. In assessing expected profitability, Dimensional may consider different ratios, such as that of
earnings or profits from operations relative to book value or assets.
DFA Emerging Markets Value Portfolio I
One Year
-4.41%
-1.82%
Three Years
3.15
4.41%
Five Years
-0.07%
2.11%
Ten Years
8.78%
8.78%


*Gross Dividend Âll Data as of Dec 31,2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.
Time-Series
Construction
January 1928 December 1969: IFA US Small Cap Index

January 1970 December 1988: IFA Emerging Markets Index
January 1989 March 1998: Fama/French Emerging Markets Small minus 0.065%/mo (mutual fund exp ratio)
April 1998 Present: DFA Emerging Markets Small Cap Portfolio Symbol: DEMSX
Investment Objective of DFA Emerging Markets Small Cap Portfolio I (DEMSX) The Emerging Markets Small Cap Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The portfolio
pursues its objective by investing substantially all of its assets in its corresponding Master Fund, The Emerging Markets Small Cap Series. The Master Fund purchases broad market coverage of smaller companies
associated with each emerging market, which may include frontier markets, that Dimensional has designated as approved markets. Dimensional may adjust the representation in the Master Fund of an eligible company,
or exclude a company, after considering expected profitability relative to other eligible companies. In assessing expected profitability, Dimensional may consider different ratios, such as that of earnings or profits from
operations relative to book value or assets.
DFA Emg. Markets Small Cap Portfolio I
One Year
3.00%
-1.82%
Three Years
8.12%
4.41%
Five Years
4.15%
2.11%
Ten Years
10.67%
8.78%


*Gross Dividend Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see www.ifaindexes.com.
Time-Series
Construction
January 1928 June 1963: One-Month T-Bills minus 0.015%/mo (mutual fund exp ratio)
July 1963 July 1983: One-Year T-Note Index minus 0.015%/mo (mutual fund exp ratio)
August 1983 Present: DFA One-Year Fixed Income Portfolio Symbol DFIHX
Investment Objective of Investment Objective of DFA One-Year Fixed Income Portfolio (DFIHX) The One-Year Fixed Income Portfolio is a no-load mutual fund designed to achieve stable real return in excess of
the rate of inflation with a minimum of risk. Generally, the portfolio will invest in a universe of high quality fixed income securities that typically mature within one year from the date of settlement. However, the portfolio
may take a large position in securities maturing within two years from the date of settlement when higher yields are available. In addition, the portfolio may concentrate investments in obligations of US and foreign banks
and bank holding companies under certain circumstances. The portfolio normally maintains a weighted average maturity that will not exceed one year and principally invests in certificates of deposit, commercial paper,
bankers' acceptances, notes and bonds.
DFA One-Year Fixed Income Index Portfolio
One-Year US Treasury Note*
One Year
0.26%
0.18%
Three Years
0.51%
0.23%
Five Years
0.66%
0.41%
Ten Years
2.13%
2.00%
Duration 0.93 Years

Average Portfolio Maturity Range 0.94 Years

*BofA Merrill Lynch Index Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see ifaindexes.com.
iv
Time-Series
Construction
January 1928 June 1977: Five-Year T-Notes minus 0.015%/mo (mutual fund exp ratio)
July 1977 December 1989: ML US Treasury Index 1-3 Years minus 0.015%/mo (mutual fund exp ratio)
January 1990 February 1996: Citi World Gov't Bond 1-3 Years Hedged minus 0.015%/mo (mutual fund exp ratio)
March 1996 Present: DFA Two-Year Global Fixed Income Portfolio Symbol: DFGFX
Investment Objective of DFA Two-Year Global Fixed Income Portfolio (DFGFX) The Two-Year Global Fixed Income Portfolio is a no-load mutual fund designed to maximize total returns consistent with preservation
of capital. The portfolio generally invests in a universe of US and foreign debt securities maturing in two years or less. As of the date of the prospectus, most investments are made in obligations of issuers that are in
developed countries, but investing in issuers located in other countries may be added in the future. The fixed income securities in which the portfolio invests are considered investment grade at the time of purchase. The
portfolio will also enter into forward foreign currency contracts to attempt to protect against uncertainty in the level of future foreign currency rates, to hedge against fluctuations in currency exchange rates or to transfer
balances from one currency to another. The portfolio may use derivatives, such as futures contracts and options on futures contracts, to gain market exposure on its uninvested cash pending investment in securities or
to maintain liquidity to pay redemptions.
DFA Two-Year Global Fixed Income Portfolio
World Gov't Bond Index 1-3 Years*
One Year
0.38%
0.59%
Three Years
0.62%
0.76%
Five Years
0.88%
0.87%
Ten Years
2.21%
2.39%
Duration 1.26 Years


*Citigroup Index, Hedged Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see ifaindexes.com.
Time-Series
Construction
January 1928 December 1972: Five-Year T-Notes minus 0.0167%/mo (mutual fund exp ratio)
January 1973 May 1987: Barclays Intermediate Government Bond Index minus 0.0167%/mo (mutual fund exp ratio)
June 1987 Present: DFA Short-Term Govt. Portfolio (Five-Year Gov't Income) Symbol: DFFGX
Investment Objective of DFA Short-Term Government Portfolio (DFFGX) The Short-Term Government Portfolio is a no-load mutual fund designed to maximize total returns from the universe of debt obligations of
the US Government and its agencies. Ordinarily, the portfolio will invest at least 80% of its net assets in government securities that mature within five years from the date of settlement. The portfolio may also acquire
repurchase agreements backed by US government securities. The portfolio is authorized to invest more than 25% of its total assets in US Treasury bonds, bills and notes and obligations of federal agencies and
instrumentalities.
One Year
1.25%
1.24%

DFA Short-Term Gov't Portfolio
Capital US Gov't Bond Index Int.*
Three Years
0.79%
0.68%
Five Years
2.03%
1.73%
Ten Years
3.00%
3.10%
Duration 2.75 Years


*Barclays Index Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see ifaindexes.com.
Time-Series
Construction
January 1928 December 1984: IFA Short Term Government Index

January 1985 November 1990: Citi Global Government Bond Hedged minus 0.0233%/mo (mutual fund exp ratio)
December 1990 Present: DFA Five-Year Global Fixed Income Portfolio Symbol: DFGBX
Investment Objective of DFA Five-Year Global Fixed Income Portfolio (DFGBX) The Five-Year Global Fixed Income Portfolio is a no-load mutual fund designed to provide a market rate of return for a fixed income
portfolio with low relative volatility of returns. Generally, the portfolio will invest in universe of US and foreign debt securities which mature within five years from the date of settlement. As of the date of the prospectus,
Dimensional expects that most investments are made in the obligations of issuers that are in developed countries, but obligations of issuers in other countries may be added in the future. Investments in obligations of
other foreign issuers rated AA or better, corporate debt obligations, bank obligations, commercial paper, repurchase agreements, obligations of other domestic and foreign issuers, securities of domestic or foreign
issuers denominated in US dollars but not trading in the United States, and supranational organizations may also be included. The portfolio will also enter into forward foreign currency contracts to attempt to protect
against uncertainty in the level of future foreign currency rates, to hedge against fluctuations in currency exchange rates or to transfer balances from one currency to another. The portfolio may use derivatives, such as
futures contracts and options on futures contracts, to gain market exposure on its uninvested cash pending investment in securities or to maintain liquidity to pay redemptions.
One Year
2.87%
1.90%

DFA Five-Year Global Fixed Portfolio
World Gov't Bond 1-5 Years*
Three Years
2.40%
1.54%
Five Years
3.39%
1.78%
Ten Years
3.60%
3.11%
Duration 3.82 Years


*Citigroup Index, Hedged Âll Data as of Dec 31, 2014. Returns include the impact of reinvested dividends and capital gains distributions. For updates see ifaindexes.com.
S&P 500 Index (SP)
January 1928 - December 1989: S&P 500 Ibbotson Associates SBBI data courtesy of Morningstar Direct
January 1990 - Present: S&P 500 Index data courtesy of Morningstar Direct
Time-Series
Construction
Investment Objective of S&P 500 Index Widely regarded as the best single gauge of the U.S. equities market, this world-renowned index includes 500 leading companies in leading industries of the U.S. economy.
Although the S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities, it is also a proxy for the total market. S&P 500 is part of a series of S&P U.S. indices that can
be used as building blocks for portfolio construction.
S&P 500 Index
One Year
13.69%
Three Years
20.41%
Five Years
15.45%

Median Market Cap $72.1B
Ten Years
7.67%
Âll Data as of Dec 31, 2014. Returns include dividends. For updates see www.ifaindexes.com.
IFA NSDQ Index (N)
January 1928 - February 1971: Fama/French US Small Growth Simulated Portfolio (ex Utilities)
Mar 1971 - Present: NASDAQ % Change; Excluding Dividends (Source: Yahoo! Finance)
Time-Series
Construction
Investment Objective of IFA NSDQ Index To capture the return of the NASDAQ-100 Index, excluding the impact of dividends. The NASDAQ-100 Index includes 100 of the largest domestic and international nonfinancial securities listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications,
retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.
Nasdaq
One Year
19.40%
Three Years
24.17%
Five Years
17.05%

Ten Years
8.12%
Âll Data as of Dec 31, 2014. For updates see ifaindexes.com.

Time-Series
Construction
Jan 1928 - Apr 1992: Dimensional US Marketwide minus 0.01%/mo (mutual fund exp ratio)
May 1992 - Present: Vanguard US Total Market Index Inst'l :VITSX
Investment Objective of Vanguard US Total Market Index (VITSX) The investment seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The fund
employs a passive management strategy designed to track the performance of the MSCI US Broad Market index, which consists of all the U.S. common stocks traded regularly on the New York Stock Exchange and the
Nasdaq over-the-counter market. It typically holds 1,200-1,300 of the stocks in its target index.
Vanguard US Total Market Index
One Year
12.57%
Three Years
20.50%
Five Years
15.70%

Ten Years
8.12%

Dividend Yield 1.60%
Time-Series
Construction
Jan 1928 - Nov 1992: Dimensional US Large Cap Growth minus 0.01%/mo (mutual fund exp ratio)
Dec 1992 - Present: Vanguard Growth Index Inst'l: VIGIX
Investment Objective of Vanguard Growth Index (VIGIX) The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization growth stocks. The fund
employs a passive management investment approach designed to track the performance of the MSCI US Prime Market Growth index, a broadly diversified index of growth stocks of large U.S. companies. It attempts to
replicate the target index by investing all, or substantially all, of assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.
Vanguard Growth Index
One Year
13.61%
Three Years
20.75%
Five Years
16.02%

Ten Years
8.67%

Time-Series
Construction
Jan 1928 - May 1998: Dimensional US Small Cap Growth minus 0.01%/mo (mutual fund exp ratio)
Jun 1998 - Present: Vanguard Small-Cap Growth Index Inst'l :VSGIX
Investment Objective of Vanguard Small-Cap Growth Index (VSGIX) The investment seeks to track the performance of a benchmark index that measures the investment return of small capitalization growth stocks.
The fund employs a passive management investment approach designed to track the performance of the MSCI US Small Cap Growth index, a broadly diversified index of growth stocks of smaller U.S. companies. It
attempts to replicate the target index by investing all, or substantially all, of assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.
Vanguard Small-Cap Growth Index
One Year
4.03%
Three Years
19.14%
Five Years
16.91%

Ten Years
9.59%

References
1-22. Source of studies for Investor Success chart
1. John C. Bogle, The Little Book of Common Sense Investing: the Only Way to Guarantee Your Fair Share of Market Returns. Hoboken, NJ: John Wiley &
Sons, 2007. 56. Print.
2. Jason Zweig, What Fund Investors Really Need To Know. Our exclusive study of mutual fund returns shows which ones really made money for investors
and which ones took shareholder for a costly ride. CNNMoney - Business, Financial and Personal Finance News. June 1, 2002. Web. 14 Nov. 2011. 10.
http://money.cnn.com/magazines/moneymag/moneymag_archive/2002/06/01/323312/index.htm.
3. Dalbar. Helping Investors Change Behavior to Capture Alpha. Quantitative Analysis of Investor Behavior. April 2013. 12. http://www.qaib.com/.
4. John C. Bogle, Bogle Financial Markets Research Center. Vanguard - Mutual Funds, IRAs, ETFs, 401(k) Plans, and More. 8 Jan. 2010. Web. 14 Nov.
2011. http://vanguard.com/bogle_site/sp20071015.html.
5. Ilia D. Dichev, Gwen Yu, Higher Risk, Lower Returns: What Hedge Fund investors Really Earn. Journal of Financial Economics. 25 Jan. 2011. http://
www.people.hbs.edu/gyu/HigherRiskLowerReturns.pdf
6. Russell Kinnel, Bad Timing Eats Away at Investor Returns. Morningstar. 15 Feb. 2010. Web. 14 Nov. 2011. http://news.morningstar.com/articlenet/
article.aspx?id=325664.
7. Bogle, John. The Arithmetic of All-In Investment Expenses. Financial Analysts Journal, January/February 2014 (pp. 13-21)
8. Dalbar. Helping Investors Change Behavior to Capture Alpha. Quantitative Analysis of Investor Behavior. April 2013. 12. http://www.qaib.com/.
9. John C. Bogle, Common Sense on Mutual Funds. Hoboken, NJ: Wiley, 2010. 331. Print.
10. Jay Franklin, Mark Hebner, Advisors Alpha: The View from Vanguard. IFA Articles, Jan. 27, 2014. http://www.ifa.com/articles/advisor_alpha_view_
from_vanguard
11. Rajeeva Sinha, Vijay Jog. Fund Flows and Performance. 1 Jan. 1998. http://economics.ca/2005/papers/0387.pdf
12. John C. Bogle, The Little Book of Common Sense Investing: the Only Way to Guarantee Your Fair Share of Market Returns. Hoboken, NJ: John Wiley
& Sons, 2007. 51. Print.
13. Geoffrey C. Friesen, Travis R. A. Sapp. Mutual fund flows and investor returns: An empirical examination of fund investor timing ability. University of
Nebraska - Lincoln. 1 Sept. 2007.
14. Andrew Clare, Nick Motson. Do UK retail investors buy at the top and sell at the bottom? Cass Business School. 1 Sept 2010. http://www.cass.city.
ac.uk/__data/assets/pdf_file/0003/69933/Do-UK-retail-investors-buy-at-the-top-and-sell-at-the-bottom.pdf
15. Jay Franklin, Mark Hebner, The Value of Following IFAs Advice, IFA Articles, 1 Oct. 2014. http://www.ifa.com/articles/quantifying_value_portfolio_
advice/
& Sons, 2007. 56. Print.
17. Morningstar. Morningstar Index Yearbook 2005. Morningstar, 12 May 2006. Web. 14 Nov. 2011. 2. http://indexes.morningstar.com/Index/PDF/
MorningstarIndexesYearbook2005.pdf.
& Sons, 2007. 51. Print.
advice/
advice/
advice/
22. Morningstar. Morningstar Index Yearbook 2005. Morningstar, 12 May 2006. Web. 14 Nov. 2011. 3. http://indexes.morningstar.com/Index/PDF/
MorningstarIndexesYearbook2005.pdf. The 109% figure that was calculated in the Morningstar study occurred during a period when there was a high
benefit to rebalancing. The 109% applied to individual mutual funds only and would not be applicable to the return shown for a portfolio of mutual funds
across different asset classes.
23. Laurent Barras, Olivier Scaillet, and Russ Wermers, False Discoveries in Mutual Fund Performance: Measuring Luck in Estimating Alphas, The Journal
of Finance, (2010).
24. Mark Hulbert, The Prescient are Few, NY Times (NY, NY), July 13, 2008.
25. Standard & Poors, S&P Indices Versus Active Funds (SPIVA) Persistence Scorecard, Year-End 2012, (2013).
26. John R. Graham and Campbell R. Harvey, Market Timing Ability and Volatility Implied in Investment Newsletters Asset Allocation Recommendations,
Journal of Financial Economics, vol. 42, no. 3 (1996).
27. Amit Goyal and Sunil Wahal, The Selection and Termination of Investment Management Firms by Plan Sponsors, Goizueta Business School,
(November 2004).
28. S&P Indices, Research and Design, Standard and Poors Indices vs. Active Funds
29. (SPIVA ) Scorecard, Year-End 2012 (2013).
30. John C. Bogle, The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns, Hoboken, NJ: John
Wiley & Sons, Inc., (2007).
31. Eugene F. Fama and Kenneth R. French, Common risk factors in the returns on stocks and bonds, Journal of Financial Economics, vol. 33, (1993)
32. Dalbar, Inc. 2013 Quantitative Analysis of Investor Behavior, (2013); Dimensional Returns 2.0, ifabt.com.
33. Laurent Barras, Olivier Scaillet, and Russ Wermers, False Discoveries in Mutual Fund Performance: Measuring Luck in Estimating Alphas, The Journal
of Finance, (2010).
34. William Sharpe, Likely Gains from Market Timing, Financial Analysts Journal, vol. 31, no. 2 (1975).
35. Technical Note: Calculation of Forecasting Accuracy, SEI Corporation position paper, April 1992.
36. Sample list taken from CXO Advisory Group, LLC, www.cxoadvisory.com/gurus/
37. Amit Goyal and Sunil Wahal, The Selection and Termination of Investment Management Firms by Plan Sponsors, The Journal of Finance, vol. 63, no.
4 (2008).
38. John C. Bogle, The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns, (Hoboken: John
Wiley & Sons, Inc. 2007).
39. Edelen, Roger, Richard Evans & Gregory Kadlec. Shedding Light on Invisible Costs: Trading Costs and Mutual Fund Performance. Financial Analysts
Journal: Vol. 69, No. 1, 2013
40. Dimensional study of 44 institutional equity pension plans with $425 billion total assets, 2002.
vi
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Step 1: Active Investors

Step 2: Nobel Laureates

Step 3: Stock Pickers

Step 4: Time Pickers

Step 5: Manager Pickers

Step 6: Style Drifters

Step 7: Silent Partners

Step 10: Risk Capacity

Step 11: Risk Exposure

Step 12: Invest and Relax

IFAs Team and Services

seek to capture the risk factors that have shown to most

3) Diversification is essential. Diversification both

IFAs investment philosophy is based on five principles

5) Advisor Advantage. There are distinct and quantifiable

1) Financial markets are efficient. Prices in free markets

IFA matches its clients with risk-appropriate portfolios

4) Structure explains performance. The expected return

2) Risk and return are inseparable. While there is no such

For updates, and further information, visit ifa.com.

The Value of a Passive Advisor

IFA has compiled the findings of 22 more financial industry

Overview of Index Funds:

STEP 2 - Nobel Laureates: Defer to the Higher Knowledge of Academia

STEP 6 - Style Drifters: Comprehend Active Management Style Drift

STEP 7 - Silent Partners: Recognize The Partners in Your Returns

STEP 9 - History: Historical Risks and Returns of Indexes

STEP 10 - Risk Capacity: Analyze Your Five Dimensions of Risk Capacity

STEP 11 - Risk Exposure: Analyze Your Five Dimensions of Risk Exposure

Step 1: Active Investors

The chart below tells the story. It reflects the findings of

These self-defeating practices of active investors

Most investors would be better off in an index fund.

Peter Lynch, famous stock picker, Barrons,

Step 2: Nobel Laureates

and researchers regarding risk, probability theory, statistics,

Friedrich von Hayek

Step 3: Stock Pickers

above the benchmark return), but studies have shown

Merton Miller, Ph.D., Nobel Laureate, PBS Nova

Step 4: Time Pickers

must be correct 74% of the time in order to outperform a

In a study titled, Likely Gains from Market Timing,

Step 5: Manager Pickers

Firms by Plan Sponsors, reveals the negative impact of

A 10-year study conducted by Amit Goyal of Emory

Jack Meyer, former Harvard Management CEO,

Step 6: Style Drifters

below. In the 33-year period from 1982 to 2014, Magellan

One particularly egregious example of style drift is

Step 7: Silent Partners

Although most index funds are tax efficient by nature, some

A John Bogle study concluded that over a 25-year period,

for a spectrum of the 100 IFA Index Portfolios

The beneficial relationship between risk and return for

Most investors tend to make investment decisions based

William Bernstein, The Intelligent Asset Allocator

Step 10: Risk Capacity

results of the survey provide a personalized Risk Capacity

Through IFAs Risk Capacity Survey at ifa.com, investors

Five Dimensions of Risk Capacity

Step 11: Risk Exposure

This is accomplished through exposure to six dimensions

IFAs 100 Index Portfolios cover the spectrum of risk