In Vanguard’s Shadow, Small Firm Scores Tweaking Indexes

When Molly Bernet Balunek expressed interest in putting money into mutual funds run by Dimensional Fund Advisors, she didn’t know she was in for a rigorous courtship ritual.

Before getting the go-ahead to invest in Dimensional’s products last year, Balunek, a financial adviser from Cleveland, had to submit to an interview, fill out a questionnaire and pay out of her own pocket for a two-day trip to Austin, Texas, where she listened to the company’s executives explain how they do business. The process, which Balunek described as “intense,” took about five months.